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Japan’s U.S. Arms Purchases Soar as Audit Flags Yen-Driven Overruns and Delivery Gaps

The audit faults the Defense Ministry for failing to disclose foreign-exchange exposure.

Overview

  • Foreign Military Sales contracts totaled ¥3.552 trillion from FY2018–23, with FY2023 alone reaching ¥1.3867 trillion, more than triple the level five years earlier.
  • The Board of Audit estimates roughly ¥300 billion in extra yen payments across FY2023–25 because the weaker currency has lifted dollar-denominated costs.
  • Purchases are concentrated in high-cost U.S. platforms, with the top 10 contracts exceeding 60% of the total and centered on F‑35A/B fighters, E‑2D aircraft, Osprey transports and Aegis-related systems.
  • Delivery shortfalls have affected unit readiness, including E‑2D maintenance kits pushed into 2024–26 that forced Misawa Air Base to use older E‑2C equipment, and F‑35 parts and nine aircraft running behind schedule at FY2024 year-end.
  • The audit also reports quality problems in used and consumable items—such as major repairs needed on C‑130R transports and bio-detection supplies with insufficient shelf life—and urges continued engagement with U.S. counterparts to resolve defects and expedite shipments.