Almost all Japanese airports are unprofitable, according to a report by an independent research group. Among 41 airports that the Aviation Policy Research Association examined, only three made money in 2005, the focus year of the study: Kobe, Itami (at Osaka) and New Chitose. Even if depreciation charges were discounted, only 10 – not quite a quarter – were in the black.

The second underground nuclear explosion, a ballistic missile test and a series of tactical missile launches by North Korea are certain signs of more trouble to come, say top U.S. military officials stationed in South Korea. But a major military event—either civil war or a major strike into the south—is considered remote.

Japan is preparing to drop its blanket ban on arms exports, a potentially far-reaching move that should result in the country finally beginning to integrate itself with the military industries of the Western democracies. After decades of trying to go it alone or seeking only inward technology transfer, Japan will accept joint development and production of weapons that can be sold abroad. It is not, however, likely to become a major exporter of equipment that it largely builds on its own.