JAPAN'S THIRD S&T BASIC PLAN

UNCLAS SECTION 01 OF 02 TOKYO 002423

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SUBJECT: JAPAN'S THIRD S&T BASIC PLAN

REF: 05 TOKYO 4326

TOKYO 00002423 001.2 OF 002


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SUMMARY
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1. On March 22, Japan's Council for Science and
Technology Policy (CSTP),which is chaired by Prime
Minister Koizumi, approved Japan's Third Five-year Basic
Plan for Science and Technology (S&T) Policy, covering JFY-
2006 to JFY-2010. The Third Basic Plan identifies 62
projects that are to receive funding and resources over
the five-year period. The CSTP also designated five of
the 62 projects as technologies critical to maintaining
Japan's S&T competitiveness, including a next generation
super computer, an advanced ocean earth observation
system, a fast breeder reactor, a new space transport
system and an x-ray free electron laser. The Ministry of
Finance has allocated Yen 25 trillion (USD217 billion) for
the GOJ's R&D investment budget for the five years covered
by the plan. The cabinet approved the plan on March 28.
The third Basic Plan can be viewed at:
http://www8.cao.jp/cstp/english/basic/3rd-
BasicPolicies_2006-2010.htm.

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Policy Goals and Strategic Priorities
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2. The Third Basic S&T Plan promotes projects that will
"make a positive contribution to society and economic
competitiveness". The GOJ identified six key goals that
each designated technology should achieve:

-- provide a "quantum leap in knowledge"
-- focus on discovery and creation
-- provide breakthroughs in advanced S&T
-- promote sustainable development
-- reclaim Japan's S&T competitiveness
-- improve public health
-- improve public safety


3. The Third Basic Plan continues the Second Basic Plan's
high-priority areas, including life sciences, information
technology, environmental sciences, and nano-technology
and materials. Four second tier areas include energy,
manufacturing technologies, infrastructure, and frontier
sciences, such as space and ocean exploration. Under
these eight areas, 62 individual research projects were
designated as strategic priorities and given specific
goals to achieve.

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Critical Technologies
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4. In December 2004, the Ministry of Education, Culture,
Sports, Science and Technology (MEXT) proposed ten
critical technologies aimed at strengthening Japan's
international competitiveness and revitalizing its S&T
capabilities (See reftel). The CSTP in December 2005
selected the following five critical projects:

1) Next Generation Supercomputer

This project will develop and operate a next generation
supercomputer with a ten-petaflop peak computing speed by
JFY2010. One-petaflop is 1000 trillion calculations per
second. Japan's Earth Simulator computer currently holds
the nation's speed record at 35.6 teraflops, making it the
fourth fastest in the world.

2) Ocean and Earth Observation

2-1) Next Generation Deep Sea Exploration Technology

This project will develop technology to drill 7,000m below
the seafloor by JFY 2010 and will also develop
technologies necessary for an autonomous underwater probe
with a 3,000km cruising range and an unmanned deep-sea
explorer capable of working at depths near 11,000m.

2-2) Earth Observation Technology

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This project will create an observation and monitoring
system by JFY2010 to analyze global environmental changes
using data on atmospheric concentrations of greenhouse
gases collected by the Global Gases Observing Satellite
(GOSAT).

2-3) Disaster Monitoring Satellite

This project will examine the feasibility of using data
from Japan's Advanced Land Observing Satellite (ALOS) and
High Accuracy Positioning Experiment System, using the
Quasi-Zenith Satellite System to observe and monitor
natural disasters.

3) Fast Breeder Reactor (FBR)

With a goal of introducing commercially viable FBRs by
JFY2050, the GOJ will begin studying technologies and
initial plant designs for a demonstrator FBR by 2010. The
project includes verification studies on cost effective
technologies to produce and burn MOX fuel.

4) Space Transportation System

This project aims to develop a reliable space
transportation system to replace the H2A space launch
vehicle (SLV). The project will also develop H2B SLVs
capable of carrying the H2 Transfer Vehicle (HTV) and an
eight-ton satellite to geosynchronous orbit by JFY2008.

5) X-ray Free Electron Laser

This project will develop an x-ray free electron laser for
measuring and analyzing atomic-level microstructures and
high-speed changes in chemical reactions by JFY2010. The
development of new measurement and analysis technologies
will facilitate advances in nano-scale manufacturing.

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Five-year R&D Investment Target
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5. The Ministry of Finance (MOF) has established the
GOJ's R&D investment target at Yen 25 trillion (USD 217
billion) for the five-year period covered by the Third
Basic Plan. Investment targets for the First and Second
Basic Plans were Yen 17 trillion (USD 148 billion) and Yen
24 trillion (USD 209 billion),respectively. MOF
initially was opposed to setting an investment target for
the current plan due to GOJ financial constraints.
However, at the November CSTP meeting, Prime Minister
Koizumi reportedly instructed Finance Minister Tanigaki
and S&T Policy Minister Matsuda to establish targets.
Koizumi argued that S&T was one of the few areas whose
budget should be increased. The Yen 25 trillion is
equivalent to one percent of Japan's GDP.

DONOVAN