Following the end of the Cold War, the Mitsubishi Heavy Industries chairman appealed to the government not to reduce defense spending.

Mitsubishi Heavy Industries’ booth at the Japan International Aerospace Exhibition 2024. Photo taken on Dec. 19, 2024, by You Haga.

Following the end of the Cold War, the world shifted toward reducing military spending.

At a Diet lower house budget committee meeting held on April 9, 1990, Komeito politician Yuichi Ichikawa, whose party was not in power at the time, asked the following question to Prime Minister Toshiki Kaifu.

“The leaders of the US and the Soviet Union have declared an end to the Cold War, and the international order has changed dramatically,” Ichikawa said. “Given the circumstances, is it really necessary to increase defense spending by 6.1% compared to the previous fiscal year? As for defense buildup going forward, the US is also saying that it will cut defense spending by $180 billion over the next three years or so. The Soviet Union is also aiming to significantly cut its defense spending.”

Although Prime Minister Kaifu’s response was vague, he did mention that he had “felt general agreement as he listened to [Ichikawa’s] remarks.”

Similar to the US and Soviet Union, Japan’s defense procurement budget began to decline from fiscal 1991. The “defense procurement budget” refers to the budget excluding personnel and certain other expenses.

Keidanren: “It will be difficult to maintain production lines”

If this trend continued, military contractors would suffer heavy losses.

In October 1993, Mitsubishi Heavy Industries Chairman Yotaro Iida held an informal meeting with Defense Agency leadership, including Director General Keisuke Nakanishi. Iida requested that the agency “not to reduce its orders,” according to the Oct. 19, 1993, Asahi Shimbun newspaper.

Iida also said the following in an interview published by the Mainichi Shimbun newspaper on Jan. 30, 1993.

“Even though the necessity of defense itself has not been questioned, the medium-term defense buildup program has unfortunately been revised down,” Iida lamented. “It makes me wonder whether Japan can survive as an independent country.”

“Keeping ourselves secure as an independent country is the same as locking your doors before you head to bed for the night,” he added. “We need to carefully observe the situation in neighboring countries such as China and South Korea before making decisions.”

In 1995, Keidanren published a recommendation titled “Hoping for the formulation of a Defense Buildup Program appropriate for the new era,” in which it asked the government to support Japan’s military production industry. The document warned that, if the situation continued unchanged, “it will become difficult to maintain production lines.”

“Unlike Western nations, our country does not have state-owned military factories, and so it is private manufacturers who support our country’s defense production and research and development, as well as the maintenance, supply, and enhancement of equipment. In addition, equipment production is made possible by the participation of numerous companies, including small and medium-sized enterprises. However, with the market limited to domestic sales and with equipment budgets being cut in recent years, it is becoming difficult for companies to maintain their technicians and production lines.”

Top 10 companies receiving defense-related procurement orders from the government from 1990 to 1995

The upper section shows order value, and the lower section shows donations from the company to the National Political Association (a political finance organization that handles corporate and group donations to the LDP).

Note:
・Order values are compiled from Defense Agency materials, etc.
・Orders received and donations made by subsidiaries are consolidated to the current parent company.
・Former company names have been aligned with current company names.

(Originally published in Japanese on October 25, 2024. )

Buying Policy: All articles