The Japanese government has approved a plan to launch the country's first satellite spy system, after failing to detect a rocket launch by North Korea in August.

A spokesman the Chief Cabinet Secretary, Hiromu Nonakasaid four satellites would be launched by the year 2002, to gather information for what he called crisis management.

Correspondents say Japan was deeply embarrassed for failing to detect North Korea's rocket launch, and had to rely on American and South Korean intelligence.

The proposed spy satellites will cost an estimated one-point-seven-billion dollars.