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Japan's Defense Agency, worried about the threat from North Korea's nuclear weapons and missile programs, hopes to have an anti-missile system in place within three years, a major Japanese newspaper reported Tuesday.

The agency is expected to increase spending considerably in the coming years for the initial setup costs and high-tech telecommunications systems for the advanced missile defense, the national Asahi newspaper said. The agency will request nearly $1.2 billion next fiscal year.

That request will be nearly nine times greater than the $132 million Tokyo spent on missile defense research from 1999 to 2003.

Japan has 27 Patriot anti-missile batteries, but they can only down missiles with a shorter range and slower speed than the ballistic missiles North Korea is believed to be developing. One of the those missiles — the Taepodong — was test-launched over Japan's main island in 1998.

The upgraded system would create a two-layer defense system.

The first layer uses Aegis-equipped naval destroyers, which have top-of-the-line surveillance systems, to track incoming missiles and intercept them with ship-to-air missiles, Asahi reported.

Backup would be provided by an enhanced version of the Patriot PAC2, capable of downing ballistic missiles with a range of 620 miles, the daily newspaper said.

In a government report last week, the Defense Agency urged accelerated research on an anti-missile system to protect against possible nuclear and terrorist attacks. It also stressed that North Korea's nuclear ambitions are one of Japan's biggest security concerns.

Japan's overall defense budget remains among the world's largest. In 2003, Japan expects to spend $42 billion on defense, or less than 1 percent of its gross domestic product.

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