34.9 B. Yen of Prepaid U.S. Defense Gear Undelivered as of End of FY 2017
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Tokyo, Oct. 18 (Jiji Press)--Japan had not received as of the end of fiscal 2017 deliveries of about 34.9 billion yen worth of defense equipment it bought from the United States, a survey by the Board of Audit revealed on Friday.
The board urged the Defense Ministry to negotiate with the U.S. side so that such delays will be resolved as soon as possible.
Under the foreign military sales program, the United States provides defense equipment to allied and friendly countries. In principle, Japan makes payments for U.S. military goods in advance of delivery and any overpaid amounts are refunded at settlement after delivery.
In the survey, the audit board looked at Japan's defense equipment procurement from the United States in four fiscal years through the end of March 2018.
Then it found that the procurement amount soared from 111.7 billion yen in fiscal 2013 to 388.2 billion yen in fiscal 2017, with the Air Self-Defense Force's procurement share jumping, in particular, although the threefold increase can be partly attributed to the yen's weakening against the dollar.
[Copyright The Jiji Press, Ltd.]