(Purpose) Article 1. The purpose of this Law is to facilitate the performance of scientific research work by private scientific research institutions, in consideration of the important role they play in the scientific and industrial development of the nation, by means of giving financial aids for enabling them to meet the existing economic situation.

(Definition) Article 2. The "private scientific research institution" (hereinafter referred to as "the research institution" ) as mentioned in this Law shall be construed to mean a juridical person established in accordance with the provisions of Article 34 of the Civil Code (Law No.89 of 1896) for the purpose of scientific researches.

(Aid to Research Institution) Article 3. Within the scope of the budget, the Government may subsidize a research institution to cover a part of the expenses needed for the maintenance and operation of such institution.

(Application for Subsidization) Article 4. In cases where a research institution intends to receive subsidies under the provisions of the preceding Article, it must submit an application to the competent Minister accordingly.

(Decision relative to Subsidization) Article 5. The competent Minister shall, when he has received an application as mentioned in the preceding Article, examine whether or not the institution concerned satisfies the following requirements;and if he recognizes that such requirements are satisfied, he shall make decision as to the amount and uses of the subsidies to be granted to the institution, or if he recognizes that such requirements are not satisfied, he shall decide that the institution concerned is not to be subsidized: (1) The researches conducted by the research institution concerned are important for the scientific or industrial development; (2) The research institution possess the research workers and research equipments necessary for the relative researches; (3) There are adequate reasons necessitating the subsidization of the research institution concerned. 2 The competent Minister shall, in examining an application in accordance with the provisions of the preceding paragraph, obtain the views of the Science Council of Japan, by referring the plan of examination and the scope of the object to be examined to the Council in advance.

(Notification) Article 6. The competent Minister shall, when he has decided as provided for in paragraph 1 of the preceding Article, immediately notify the institution concerned thereof.

(Prohibition of Diverted Use of Subsidies) Article 7. A research institution shall not use the subsidies granted to it for purposes other than those prescribed in the decision mentioned in Article 5 paragraph 1.

(Accounting of Subsidies) Article 8. A research institution shall keep a distinct account of the subsidies granted to it, as separated from other receipts and disburements.

(Obligation to make Public Announcement) Article 9. A research institution, which has been granted subsidies, shall announce the results of its research to the public.

(Return of Subsidies, etc.) Article 10. In case a research institution for which subsidization has heen decided falls under any of the following items, the competent Minister shall order to revoke such decision, suspend the granting of subsidies or return the whole or part of the subsidies granted: (1) When it has ceased to satisfy the requirements prescribed in any of the items of Article 5 paragraph 1; (2) When it has violated the provisions of the preceding three Articles. 2 The provisions of Article 5 paragraph 2 shall apply mutatis mutandis in regard to actions to be taken under the preceding paragraph.

(Supervision) Article 11. The competent Minister may, when he deems it necessary, cause a report to be submitted by a research institution for which subsidization has been decided, or make an official inspect books and others thereof. 2 In case an official conducts inspection under the provisions of the preceding paragraph, he shall carry with him a card identifying his official status and show it to persons concerned.

(Final Account of Receipts and Disbursements) Article 12. A research institution which has been granted subsidies shall prepare a statement of the final account of receipts and disbursements every fiscal year and submit it to the competent Minister.

(Delegatory Provisions) Article 13. Procedures concerning application for the grant of subsidies, books to be kept by a research institution which has been granted subsidies, and other necessary matters relating to enforcement of this Law shall be provided for by the Ordinance of the competent Ministry.