TOKYO : Japan’s national auditor has disclosed that military equipment worth roughly 1.1 trillion yen (about $6.9 billion) purchased from the United States has remained undelivered for years, exposing structural weaknesses in one of Tokyo’s most important defense procurement channels and raising fresh concerns about operational readiness across the Japan Self-Defense Forces.
In an audit report submitted to parliament in January 2026, the Board of Audit of Japan revealed that weapons systems, support equipment, and maintenance assets acquired under the U.S. Foreign Military Sales (FMS) framework had failed to arrive despite more than five years having passed since contracts were signed. The investigation was conducted at the formal request of the House of Councillors and reviewed procurement cases dating back to fiscal year 2018.
Long-Delayed Deliveries Across 118 Contracts
According to the audit, 118 FMS procurement cases remained incomplete well beyond their planned delivery windows. In many instances, equipment that was expected within a few years had still not been shipped, forcing Japan’s ground, maritime, and air units to rely on aging systems or interim substitutes. The Board concluded that the majority of delays stemmed from bottlenecks at U.S. manufacturers, including production backlogs and shifting priorities tied to American defense requirements.
Because FMS contracts are administered by the U.S. government, rather than directly between Japan and defense companies, Tokyo has limited visibility into manufacturing schedules and limited ability to press suppliers for faster delivery.
Impact on Air Defense Capabilities
One of the most serious cases identified in the report involved maintenance and support equipment for the E-2D Advanced Hawkeye, a key airborne early warning platform operated by the Japan Air Self-Defense Force. The audit found that tools and systems required to properly service the aircraft were not delivered within the original contract period and remained outstanding years later.
The E-2D fleet plays a central role in monitoring Japan’s airspace and coordinating air defense operations. The lack of dedicated maintenance equipment, the report warned, risked reducing aircraft availability and increasing strain on personnel tasked with keeping the fleet operational.
Contracts With Limited Enforcement Power
The Board of Audit emphasized that delivery schedules listed in FMS agreements are estimates rather than legally binding commitments. Under the program’s rules, the U.S. government retains the authority to adjust timelines through administrative procedures, often without requiring formal approval from the purchasing country. Japan, having already made advance payments, has little leverage to compel adherence to original schedules.
In several cases examined by auditors, delivery dates were repeatedly revised unilaterally by the U.S. side. Some contracts remained financially unsettled for years, with funds fully paid but equipment neither delivered nor formally canceled.
Financial Exposure and Operational Risk
The report highlighted that Japan had already paid the full contract value for most delayed items, as FMS requires upfront payment before production and delivery are completed. This created what the Board described as long-term financial exposure, tying up defense funds while offering no immediate operational benefit.
Operational risks were also flagged. Units across the Self-Defense Forces were compelled to extend the service life of older platforms, increasing maintenance costs and reducing efficiency. Auditors warned that prolonged reliance on outdated systems could erode readiness at a time when Japan faces a rapidly deteriorating regional security environment.
Structural Limits of the FMS System
The audit devoted significant attention to structural issues inherent in the FMS framework. Because contracts are signed between the U.S. government and American defense companies, Japan is not a direct contractual party and cannot negotiate directly with manufacturers. This arrangement limits transparency over production delays, cost breakdowns, and the prioritization of orders when U.S. domestic or allied demands surge.
While the Japanese Ministry of Defense repeatedly raised concerns with U.S. authorities, the Board found that these efforts produced only limited improvements in delivery timelines.
Government Response and Recommendations
The Ministry of Defense acknowledged the findings and stated that it would continue discussions with Washington to improve schedule management and information sharing. The Board of Audit urged the ministry to strengthen internal oversight of FMS contracts, enhance tracking of delayed items, and more carefully assess procurement risks before committing large sums of public funds.
The audit also recommended that Japan reconsider whether FMS is always the most appropriate procurement route, particularly for support equipment and spare parts that directly affect day-to-day operational availability.
Broader Implications for Japan’s Defense Strategy
The findings come as Japan deepens its reliance on U.S.-made systems, including advanced aircraft, missile defenses, and command-and-control assets. The Board warned that continued delivery delays could have cumulative effects across multiple domains, undermining deterrence and readiness if not addressed.
The FMS program remains a cornerstone of U.S. arms exports, promoted as a means to ensure interoperability and security among allies. However, the Japanese audit underscores how the system can leave purchasing nations exposed when production capacity is strained or when American priorities shift, turning estimated delivery schedules into years-long uncertainties.
