For the first time since World War II, Japan is moving forward with the creation of a centralized intelligence agency, drawing on the expertise of its Western allies, particularly the United States, as part of efforts to bolster its intelligence capabilities.

The move comes as Tokyo seeks to strengthen its security amid growing regional challenges.

Japanese officials told The New York Times that in recent months, Japanese leaders held secret talks with counterparts from the United States, Australia, and Germany, consulting them on technology, recruitment mechanisms, and priorities for the new agency — meetings that had not been previously disclosed.

According to the newspaper's sources among experts, Japan's intelligence system has suffered from fragmentation for decades, with multiple entities such as the Defense Ministry and police collecting and analyzing information without effective sharing, increasing the country's vulnerability to espionage and foreign interference.

Establishing a domestic intelligence agency is a key pillar of Japanese Prime Minister Sanae Takaichi's efforts to shed the restrictions imposed on defense and security since the end of World War II.

Takaichi, known for her hawkish stance, has articulated a vision of a 'strong and prosperous Japan' and has already lifted restrictions on arms exports, while pushing for the largest enhancement of Japan's defense capabilities since the war ended.

Takaichi's Priority

Takaichi aims to strengthen protection of 'state secrets and critical technologies' and counter 'foreign influence operations,' particularly those led by China.

Andrew Shearer, Australia's ambassador to Japan, who has provided informal advice to Takaichi's government, said Japanese officials feel their country's intelligence capabilities have 'remained frozen at the level of decades past.'

He added: 'It matters that Takaichi has made this a priority and that she is investing her political capital to get it done.'

Shearer, who served as Australia's director-general of national intelligence from 2020 until last December, is one of the most influential voices on this issue.

When Takaichi visited Australia's capital Canberra in May, she thanked Australian Prime Minister Anthony Albanese for appointing an ambassador with an intelligence background, according to officials briefed on the visit.

Intelligence officials from the United States, Japan's main security ally, have advised Japan on cyber defense systems and counterespionage methods, according to two sources familiar with the discussions, as reported by The New York Times.

The American officials also discussed ways to tighten oversight of foreign investments and foreign agents operating inside Japan, according to the two sources.

The head of Germany's foreign intelligence service (BND) recently visited Tokyo and discussed, among other things, the establishment of the new Japanese agency and ways to enhance intelligence sharing between the two countries, according to two people familiar with the visit.

Australian officials have also provided advice on technology, as well as strategies to help different ministries cooperate and share information, according to Shearer.

Imperial Japan's Memories

Takaichi's plans, which aim to centralize intelligence collection under her oversight and enhance sharing among government institutions, have drawn domestic and foreign criticism, including from China, which accused Tokyo of reviving militarism.

Opposition lawmaker Mizuho Fukushima said the absence of an independent intelligence agency for the past eight decades was a choice 'stemming from Japan's commitment to being a peaceful state that renounces war and the lessons learned from its history.'

She added that the new agency 'violates the right to privacy and other rights, and paves the way for a surveillance society.'

In response, Takaichi and her allies have defended the project, which is part of a proposed package of reforms to Japan's security system. The prime minister seeks to tighten antiespionage laws and has expressed support for establishing a specialized foreign intelligence agency similar to the U.S. Central Intelligence Agency (CIA), noting that Japan is among a limited number of major powers that lack such an agency.

The new agency, with a budget of about $407 million, is expected to begin operations by December and will initially employ hundreds of staff, including software engineers, cyber security analysts, and external liaison officers. Japanese media have reported that the agency plans to hold recruitment exams for new personnel next year.

The new agency will serve as the central hub for intelligence collection and analysis in Japan, coordinating the work of approximately 33,000 people involved in intelligence across various state bodies, including the police, the Defense Ministry, and the Foreign Ministry.

Japan already has a Cabinet Office bureau responsible for coordinating information flow, but it lacks the authority to compel different agencies to share intelligence reports.

Under Takaichi's proposed changes, Japan will also establish an independent intelligence council to serve as the main command center, chaired by the prime minister.

A spokesman for the Cabinet Secretariat said in a statement that the creation of the new intelligence agency is necessary, in part, to counter the theft of classified information through cyberattacks and to combat disinformation campaigns aimed at influencing public policy.

He added that the government is working to assess 'activities of foreign entities' and ensure information security in both the public and private sectors.

A Haven for Spies

The roots of Japan's intelligence problems date back to the post-World War II period, when its security apparatus, once one of the most powerful, was dismantled under the U.S. occupation of Japan.

Since then, Tokyo has relied heavily on the United States for foreign intelligence, while domestic support for establishing an independent spy agency waned due to the excesses of the prewar 'Tokko' special police force.

In the following decades, Japan earned a reputation as a 'haven for spies,' with security agencies operating in isolation from one another, politicians, academics, and journalists easily influenced, and foreign agents able to operate freely, according to The New York Times.

In 2013, Japan's longest-serving prime minister, Shinzo Abe, began dismantling many post-World War II restrictions on defense and intelligence gathering.

Abe, who was assassinated in 2022 after leaving office, was considered one of Takaichi's most prominent political mentors.

As staunch conservatives within the ruling Liberal Democratic Party, the two shared a conviction that Japan had spent too long apologizing for wartime atrocities instead of rebuilding its security institutions.