Article 1. The Ministry of Transportation Establishment Law (Law No.157 of 1949) shall be partially amended as follows: In the Contents, "Section 3 Marine Accidents Inquiry Agency (Article 59)" shall be amended as "Section 3 Marine Accidents Inquiry Agency (Article 59) Section 4 Civil Aeronautics Agency (Articles 59-(2)-59-(5)) " The following one item shall be added next to Article 3 item (10): (11) Aviation. The following three items shall be added next to Article 4 paragraph 1 item (52): (52-2) To grant licence for internal air transportation and give permission or approval relating to the business thereof; (52-3) To construct, maintain, operate and manage air navigation facilities; (52-4) To acquire the patent rights, utility model rights, and application rights thereof, necessary for the execution of affairs under its jurisdiction; The following one item shall be added next to Article 6 paragraph 1 item (11-3): (11-4) Licence, approval and other dispositions under the provisions of the Order for Operation of Internal Air Transportation (Cabinet Order No.327 of 1950); In Article 56, "Marine Accidents Inquiry Agency" shall be amended as "Marine Accidents Inquiry Agency Civil Aeronautics Agency ". The following one section shall be added next to Article 59:

Section 4 Civil Aeronautics Agency

(Duty and Head of Civil Aeronautics Agency) Article 59-(2). The Civil Aeronautics Agency shall conduct the affairs relating to air transportation and air safety. 2 The head of the Civil Aeronautics Agency shall be called Director of the Civil Aeronautics Agency.

(Special Position) Article 59-(3). The Civil Aeronautics Agency shall have one Deputy-Director. 2 The Deputy-Director shall assist the Director of the Civil Aeronautics Agency in administering the affairs of the Agency.

(Functions of Civil Aeronautics Agency) Article 59-(4). The Civil Aeronautics Agency shall take charge of the following affairs: (1) Licence, permission or approval relating to air transportation; (2) Fares and charges for air transportation; (3) Inspection of the business relating to air transportation; (4) Other matters relating to development, improvement and adjustment of air transportation; (5) Construction, maintenance, operation and management of air navigation facilities; (6) Investigation, research, experiment and model making for the improvement of air navigation facilities; (7) Survey of airways and compilation of airways guide; (8) Other matters relating to air safety; (9) The following matters for the execution of affairs mentioned in the preceding items: (a) Confidential matters; (b) Custody of the Director's and Agency's official seals; (c) Receipt, dispatch, compilation and custody of official documents; (d) Administrative inspections; (e) Investigations and statistics; (f) Reviewing of draft bills and orders and other legal affairs; (g) Dissemination of information; (h) Liaison business; (i) Classification, appointment and dismissal of personnel, their status, disciplinary punishment, performance of duty, and other personnel affairs;also their refinement and training; (j) Health and medical treatment of personnel and other welfare matters; (k) Budget estimates for expenditures and revenues, settlement of accounts, accounts and account audits; (1) Control of administrative property and articles.

(Organs of Civil Aeronautics Agency) Article 59-(5). The Minister of Transportation may establish at necessary places the offices listed in the first column of the following table. The purposes of the offices shall be respectively as shown in the second column: Description Purpose Aeronautical Aids Office To construct, maintain and operate air navigation facilities Aeronautical Radio Beacon Station To maintain and operate aeronautical radio beacon facilities and aeronautical radio communications facilities

2 The names, locations and internal subdivisions of the Aeronautical Aids Office and Aeronautical Radio Beacon Station shall be provided for by Ministry of Transportation Ordinance. 3 The Minister of Transportation may establish at necessary places branch offices of the Aeronautical Aids Office and Aeronautical Radio Beacon Station to take charge of a part of the affairs of the organs in paragraph 1. The names, locations and the scope of functions of such branch offices shall be provided for by Ministry of Transportation Ordinance.

Article 2. The Ministry of Telecommunications Establishment Law (Law No.245 of 1948) shall be partially amended as follows: In the Contents, "Chapter III Independent Organs (Articles 29-44)" shall be amended as "Chapter III Deleted" . In Article 2, items (12) to (15) inclusive shall be deleted. Article 4 paragraph 1 shall be amended as follows: The Ministry of Telecommunications shall be the only Japanese administrative organ responsible for the telecommunication service as the integrated national and local public services. In Article 5 item (20), "and aeronautical aids service" shall be deleted. In Article 10 item (5-2), "and External Organizations" shall be deleted. In the provisos to Article 15 items (8) and (9), Article 16 item (16) and Article 24 item (20), "the Aeronautical Aids Agency" shall be amended as "the Civil Aeronautics Agency" . Chapter III shall be amended as follows: CHAPTER III Deleted

Articles 29 to 44 inclusive. Deleted.

In Article 54, "and the Director of Aeronautical Aids Agency" shall be deleted.

Article 3. The National Government Organization Law (Law No.120 of 1948) shall be partially amended as follows: In the item of the Ministry of Transportation in Annexed Table No.1, "Marine Accidents Inquiry Agency" shall be amended as "Marine Accidents Inquiry Agency Civil Aeronautics Agency" and in the item of the Ministry of Telecommunications in the same Table, "Aeronautical Aids Agency" shall be deleted.

Article 4. The Law for the Fixed Number of Personnel in the Administrative Organs (Law No.126 of 1949) shall be partially amended as follows: In the item of the Ministry of Transportation in the Table of Article 2 paragraph 1, "Marine Accidents Inquiry Agency 85 persons" shall be amended as "Marine Accidents Inquiry Agency 85 persons Civil Aeronautics Agency 1,096 persons" and "26,771 persons" shall be amended as "27,867 persons" and in the item of the Ministry of Telecommunications in the same Table, "Aeronautical Aids Agency 1,096 persons Total 143,539 persons" shall be deleted and in item (4) of the same Article, "2,392 persons" shall be amended as "2,476 persons" .

Article 5. The Order for Operation of Internal Air Transportation shall be partially amended as follows: In Article 12, paragraphs 1 and 2 shall be deleted and in paragraph 3. "The Director of the Aeronautical Aids Agency" shall be amended as "The Director of the Civil Aeronautics Agency" and the paragraphic number of the same paragraph shall be deleted.