A newly set-up government panel began discussing basic defense policies Thursday, ultimately aiming to revise the National Defense Program Guideline before year's end.

Prime Minister Yukio Hatoyama, who was present at the first meeting of defense experts and academics, urged the members to hold open and free discussions.

He listed examples of security issues, including North Korea's missile and nuclear threat and development of arms and the modernization of military capabilities of "neighboring countries" as well as how Japan can participate in the international community in fields like U.N. peacekeeping operations, disaster relief activities and antiterrorism.