Japanese scientists are at last actively entering the debate over the government's controversial reform. plan, which targets not only ailing government organizations but also some of Japan's best basic research institutes for conversion to agency status. This status would give them independence in management but require them to have their performance evaluated by external assessment bodies. This publication has long advocated giving greater autonomy and responsibility to the institutions administered by Japan's Ministry of Education and Science, including universities and the institutes for joint university use. An independent management system would allow increased flexibility in funding. Furthermore, without the restrictions imposed by the civil service law, researchers would be free to carry out entrepreneurial activities, such as setting up venture businesses and carrying out joint research with private companies. The government's reform. plan moves in this direction but, as it stands, its flaws are far more obvious than its potential benefits. Opposition to reform. of the universities has succeeded in delaying further changes until at least 2003, giving time for the fundamental reshaping required. Many fundamental steps need to be taken, such as implementation of a national external review system and of competent new administration, before universities will be ready for agency status. But other institutions would face more immediate problems if the current proposals are implemented. The reform. plan, which is part of the government's drive to improve the country's administration across the board, has met strong opposition from the outset, with targeted institutes arguing against the government's claim that the changes are necessary to run them more efficiently. Such resistance is hardly surprising given the plan's rationalization targets and costcutting measures. The government has also made clear its intention to close down, merge or privatize institutes that fail to meet their performance-related targets. But, following compromises by the government with stronger ministries over its plan to reduce the number of civil servants by 25 percent, there is disproportionate pressure on research institutes to cut their costs. As a result, the National Research Institutes for Joint University Use are at risk they are all renowned for the quality of their basic research. More thought must be given to decisions concerning such high-quality institutes, whose activities are ill-suited to targets based on cost performance. The government should create a separate agency plan for institutes carrying out basic research, so that appropriate evaluation systems and performance-related targets can be introduced, with goals and support established over periods of 5—10 years, reflecting the longterm character of fundamental research. The passage is mainly discussing the fact that______.