A bill to encourage increased security spending by the Government of Japan.

Directs the President to determine, within 90 days after Japan approves a national budget for any fiscal year, whether the sums authorized in that budget for the Japanese Self-Defense Forces and for economic aid to certain countries equal or exceed the minimum acceptable security outlay for that Japanese fiscal year. Defines such minimum as an amount whose ratio is the same to the Japanese gross national product as U.S. defense spending is to the U.S. gross national product.

Requires the President, if the authorizations do not meet such standard, to: (1) determine the difference between the acceptable outlay and the budget authorization; and (2) impose duties on Japanese imports as necessary to generate customs revenues that are equal to the amount determined under (1).

Creates in the Treasury the Strategic Foreign Aid Fund to provide economic and military aid to certain countries in Central America, the Middle East, Asia, and the Pacific. Makes appropriations to the Fund in amounts equal to the duties imposed on Japanese imports.