QUOTATIONS FROM THE SUBCOMMITTEE HEARINGS INDICATE THE PERIPHERAL NATURE OF SOME LOCKHEED REVELATIONS IN THE AMERICAN INVESTIGATION THAT WERE CRUCIAL FROM THE JAPANESE PERSPECTIVE. PRESS AND PUBLIC OPINION IN JAPAN WERE OUTRAGED, PROMPTING PRIME MINISTER MIKI TO EMBARK UPON JAPANESE INVESTIGATIONS OF UNPRECEDENTED IMPLICATIONS. PRIOR TO THE SCANDAL, ALLEGATIONS OF IMPROPRIETIES ABOUT POLITICIANS' BEHAVIOR HAD NEVER BEEN BROUGHT TO TRIAL, DESPITE OVERWHELMING EVIDENCE. ON JULY 27, 1976, HOWEVER, THE LEADER OF THE MOST POWERFUL FACTION IN THE GOVERNING PARTY, FORMER PRIME MINISTER TANAKA KAKUEI, WAS CALLED IN FOR QUESTIONING BY PUBLIC PROCURATORS AND JAILED. PRIME MINISTER MIKI HAD SUCCEEDED IN SUPPORTING THE LAW ENFORCEMENT INVESTIGATIONS REGARDLESS OF THE IMPLICATIONS, THEREBY JEOPARDIZING HIS CAREER AND CAUSING DIVISION IN HIS PARTY. THIS ESSAY REVIEWS JAPANESE REACTIONS TO THE LOCKHEED DISCLOSURES AND THEIR DOMESTIC AND FOREIGN EFFORTS TO ARRIVE AT THE FACTS LEADING UP TO TANAKA'S ARREST. DIPLOMATIC NEGOTIATIONS WITH THE AMERICANS FOR DISCLOSURE OF INFORMATION EVEN INVOLVED THE U.S. PRESIDENT. SUBSEQUENT JAPANESE DIET HEARINGS PROVIDED SUBSTANTIAL CIRCUMSTANTIAL EVIDENCE THAT PAYOFFS ASSISTED IN THE DECISION TO PURCHASE LOCKHEED AIRPLANES. THE ROLES OF PROMINENT BUSINESSMEN, SOME DUBIOUS CHARACTERS OF THE UNDERWORLD, AND OTHER GOVERNMENT OFFICIALS REMAIN UNCLEAR. ALTHOUGH $75,000 APPEARS TO HAVE BEEN PASSED THROUGH JAPAN BY LOCKHEED AGENTS, SOME OF WHICH WAS PROBABLY CHANNELED BACK TO THE U.S. FOR ILLEGAL POLITICAL CONTRIBUTIONS, A COMPLETE ACCOUNTING HAS BEEN IMPOSSIBLE BECAUSE PUBLIC INFORMATION IS TOO FRAGMENTARY, THE EVIDENCE TOO CIRCUMSTANTIAL, AND THE VESTED INTERESTS TOO POWERFUL. THIS CASE REVEALS THE INTERDEPENDENCE OF THE U.S. AND JAPAN POLITICALLY AND ECONOMICALLY. MUTUAL COOPERATION IN THE EXCHANGE OF INFORMATION IN THIS CASE HAS STRENGTHENED THE BONDS BETWEEN THE TWO PACIFIC PARTNERS. FOOTNOTES ARE INCLUDED. (MRK)