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Presents the results of the survey made by the Massachusetts Institute of Technology's Japan Program on the industry and government attitudes about technology transfer between the United States and Japan. US Department of Defense Secretary William Perry's efforts to promote a balance in the technology transfer between the two countries; Factors affecting the technology transfer.

Reports on United States Pentagon's offer to share military technologies with Japan in exchange for greater access to Japanese commercial electronics. Plan of broadening U.S. technological cooperation with Japan; Technologies being targeted; Defenses against North Korean missiles threat; Part of overall defense conversion strategy; Focus of cooperation in Systems and Technology Forum.

Reports that Japan's Ministry of International Trade and Industry is boosting technology aid to developing countries in the form of joint materials research with their national institutes.