It also says the government will aim to increase defence spending to 2% of GDP.
And its most recent budget would increase defence spending by just 1.5%, a far cry from the 9% average growth in 2006-09.
Germany is unlikely to increase defence spending, a long-standing American demand.
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The prime minister does "not resile" from his commitment to increase defence spending after the next election, reporters on his trip to Africa were told yesterday.
By proposing an increase in defence spending, Mr Clinton has moved onto traditional Republican turf.
But despite such a warning, it is unlikely that Europeans will increase their defence budgets at a time of austerity.
The request for funds is in addition to news on Tuesday that the new government, which won elections in December, would increase the defence budget request by more than 100bn yen.
The budget was announced, including an unusual 18% increase in spending on defence.
Second, the Europeans complain that acquiring McDonnell Douglas will increase Boeing's defence and space business so much that it will strengthen its commercial-aviation side too.
The US Congress approved a 20-fold increase in bio-defence funding.
Defence spending is due to increase this year and next, but military experts say the Ministry of Defence's budget could fall by between 10% and 15% in real terms over the next six years if its current and capital expenditure is reduced in line with forecasts for the rest of government.
Plainly, either defence spending must increase or the armed forces will have to do less.
It will be good for our Australian Defence Force to increase their capabilities by joint training, combined training, with the U.S. Marines and personnel.
The mooted increase is not large - the defence budget for the year ending in March 2012 stood at 4.65 trillion yen - but it represents a change.
"International economic problems could lead to our allies having to make considerable cuts to their defence spending, and to an increase in economic migrants between EU member states, and to domestic social or political unrest, " it said.
Defence sources said their numbers were expected to increase to 2, 500.
France has sent about 550 troops to the central town of Mopti and to Bamako, and a defence ministry official told Reuters troop numbers would increase to 2, 500 in coming days.
This is potentially a huge deal, which could dramatically increase India's military capabilities, the BBC's defence and security correspondent Nick Childs says.
The report, Overcoming the Defence Crisis, urges the government to launch a comprehensive defence review and commit itself in principle to a spending increase.
In May Stephen Harper, the prime minister, unveiled a new defence strategy called Canada First, with a pledge to increase the annual budget for the military by two-thirds over 20 years.
Shortly afterwards, America and Japan reaffirmed their bilateral security treaty, which commits America to the defence of Japan, and agreed to look for ways to increase Japan's contribution to regional security.
Defence officials told the Washington Post, which first reported the staff increase, that the Pentagon had approved an expansion to 4, 900 troops and civilians.
The group (whose UK co-chair is the former Defence and Foreign Secretary Sir Malcolm Rifkind) also argues that removing them from combat bases would greatly increase early warning and decision time, and therefore reduce any remaining concern of a sudden nuclear attack.
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