Japan set to allow exports of missile interceptors

TOKYO, June 3 (Reuters) - Japan signalled on Friday it would allow exports of missile interceptors it is developing jointly with the United States to other countries, relaxing its ban on arms exports.

Defence Minister Toshimi Kitazawa told his U.S. counterpart Robert Gates that Japan was studying ways to agree on the criteria for exports of the ship-based Standard Missile-3 Block IIA, the two sides said in a joint statement after a meeting in Singapore.

The criteria being considered included whether the exports would contribute to security in Japan and international stability, and whether the country receiving the interceptors could prevent them from being transferred elsewhere, they said.

Kitazawa met Gates on the sidelines of the Shangri-La security dialogue in Singapore ahead of another meeting expected later this month where they will be joined by the two countries' foreign ministers.

Japanese media have said Europe is considered a likely destination for the missile interceptors.

The advanced missile defence system is key to U.S. plans to be able to defend all of NATO's European territory from a perceived Iranian ballistic-missile threat.

Japan has banned arms sales since 1967 to countries with communist governments or that are involved in international conflicts or subject to United Nations sanctions.

The rules have meant virtually a blanket ban on arms exports and the development or production of weapons with countries other than the United States, hurting the competitiveness of defence contractors such as Mitsubishi Heavy Industries Ltd. (Reporting by Chisa Fujioka; Editing by Alex Richardson)