Abstract
The Japanese policy on space development has considerably extended its scope, emphasizing industrial applications and enhanced role of the private sector. However, the new policy has several problems : 1) strategic initiative of the government in the fields with limited ties to industry, such as space science or space probe, is not clearly specified, 2) regulations on activities of the private sector in space development should be adapted according to the changing competitive business environment, 3) comprehensive policy should be established to integrate related fields such as communication, environmental protection and defense. The Third Phase of the Basic Plan should respond to these tasks.