The Japanese and U.S. governments have begun arranging for Japan to develop a rocket engine and the United States a warhead for the joint sea-based missile defense system, diplomatic sources said Tuesday.
The missile shield system is scheduled to reach the development phase in fiscal 2006.
The two countries will conclude a new pact on the project after Japan's Security Council endorses the plan around the end of this year.
To fund the project to develop the enhanced Standard Missile-3 interceptor, the Defense Agency is expected to request billons of yen for fiscal 2006 in its annual budgetary request at the end of this month.