The Defense Agency compiled a report in 1995 that said there would be no merit to Japan developing nuclear weapons, it was learned Thursday.

According to government sources, the report said Japan would suffer huge political and economic costs if it had a nuclear arsenal, because of loss of trust from neighboring states and erosion to the credibility of the Japan-U.S. alliance.

The alliance is based on the premise that Japan is protected under the U.S. nuclear umbrella.