Kitaoka, resigned a week later following heavy losses by Mitsubishi Electric (Melco) last year and has been replaced by the tough talking Ichiro Taniguchi. [Please see previous Japan Space Net Spotlight interview with Taniguchi].

The "Space Industry Symposium," held March 9, Tokyo, was to officially unveil the ministry's next-generation commercial off the shelf components test satellite, the 1.5 metric ton Unmanned Space Experiment Recovery System (USERS). However Kitaoka�s speech was seen as a thinly-disguised call for funding for USERS's successors.

The satellite, which is being built by Melco as prime contractor for MITI's Tokyo-based Institute for Unmanned Space Experiment Free Flyer (USEF), should begin its three year mission after being launched into a 500 km orbit aboard an H2A rocket in early 2000.

Currently USEF can only ask for a budget for one big-ticket program per year and was currently in tough negotiations with the Ministry of Finance over the amount of development budget for next year, according to USEF president Hirotaka Kawamoto.

"The speech won't have any influence on the Government, but basically we were announcing our intentions to lead Japan into space commercialization," he told Japan Space Net.

Satoshi Inoue, deputy director of the Ministry of Trade and Industry's space industry division, said he expected to receive around 4.8 billion yen for the 1999 fiscal period starting April 1, 1999, while Kawamoto estimated the total project cost at 23 billion yen.

Now approaching preliminary design review at Mistubishi's new seven billion ($56 million) yen Kamakura works outside Tokyo, USERS is designed to deliver something for everybody.

A Nissan Motors designed 700 kg service module will carry a superconductor materials processing furnace to support Japan's on-going material science R&D efforts in the areas of energy storage and linear motors.

Nissan will get targeted re-entry capability, according to Tatsuro Asai, general manager of the contractor's space systems department. After six months, the module will detach and guide itself into a re-entry path to splash down near Japan's Ogasawara Island in a target area of as yet "undetermined" size, according to Asai.

"We have great experience in getting things into orbit, now we need to extend that to return transportation systems," he added.

Meanwhile, another module will carry five "cheaper-better-faster" experiments tailored to give contractors a mix of key technologies, test commercial off the shelf components in a graduated approach to abandoning Milspec rated components while boosting satellite integration technologies, said Inoue.

"USERS is designed to help Japan make a big impact on the world commercial satellite market. Toshiba, Melco and NEC have reached world standard at component level, but they need more integration technologies. USERS's components will help them compete against Mantra Marconi, Hughes and Space Systems Loral," Inoue said

Kawamoto characterized the satellite as Japan's most effective technology implementation to help contractors commercialize, an opinion in part shared by makers themselves.

Nissan will also provide space-hardened automotive chips for engine management in USERS's main body, accompanied by Mitsubishi Precision Instruments' advanced gyro, Toshiba's dual frequency GPS receiver, Mitsubishi Electric's advanced star sensor and NEC's advanced radiator in USERS's main body. All contractors are Tokyo based.

For Mitsubishi, USERS will be a key step in developing a low Earth orbit satellite with a 15 billion yen (120 million) price tag after 2005, based on USERS and its derivatives, "which need government support," according to Masao Sato, a manager at Mitsubishi's advanced space systems design group.

Sato said the satellite's single unit space computer would slash costs on future Mitsubishi satellites by removing ancillary systems. Sato estimated USERS� would cost about 20 billion yen a shot - an amount he characterized as "very cheap" compared to the 20 trillion yen the Ministry of Finance has recently proposed to shore up Japan's shaky banking system.

USERS will help NEC speed up development of its 3-ton geo-stationary commercial satellite bus due on the market in 2005, according to Shinichi Otani, assistant general manager of NEC's space systems division.

"NEC intends to get into the 10-20 Kilowatt-class communications satellite market so we need this [radiator]...and even if we don't break into the commercial market with a complete satellite, we can still sell the radiator to the Japanese and international markets," he said.