Now that Japan has achieved a remarkable high growth and joined the ranks of economic powers, she is required to take a stance proper to her new position toward international co- operation among Western advanced countries, economic/technical aids to Southeast Asian and Pacific LDCs, and others. As a field subject to such international cooperation programs, the development/use of coal resources has been winning increasing attention in recent years. Coal is positioned as one of promising alternative energies. With Southeast Asia plus Japan and the EEC serving as the two nucleus polar regions, total coal demand in the free world is projected to jump 37% in the year 2000 from the present level and steaming coal imports in the world, primarily destined for power generation, almost double the 1983 level. Such being the situations, Japan's tech- nologies related to coal resource development, if successfully introduced into coal-producing countries to help them boost their production, can directly lead to international cooperation that Japan is now required to fulfill. At home, however, the Japanese coal industry has been just on the wane due to various press- ing problems, such as wider differentials between overseas and domestic coal and deeper/ remorter mining. The industry was named atop in a list of the industries requiring restruct- uring at a meeting of the Economic Structure Study Committee held prior to the decision- making of the 8th coal policy, which slashed coal production planned for the last fiscal year of its life to some 10 million tons, a drop of as much as 50% from nominal output planned in the 7th policy. Under such circumstances at home and abroad, a pioneer study has been under way since fiscal 1984 as part of Japan's energy cooperation in the Pacific. The study is based on the Pacific coal flow concept hammered out by the Agency of Natural Resources and Energy of the MITI.