This report reviews the status of Japanese hardware, systems andapplications for digital information organization (DIO) with a particularemphasis on digital libraries. Specific topics include technologicaldevelopment in both hardware and software; practical DIO applications;cooperation among government, industry and universities; and economic andpolicy issues. The report includes site reports for visits conducted by thepanel members to leading research laboratories and universities in Japan. Thepanel's conclusions include the following: (1) DIO systems in the United Statesand Japan are based on common, integrated technologies to provide a spectrum ofservices; (2) Japan is producing extremely fast large-capacityhardware/software research systems; (3) Japan leads the United States indigital display development by about two years; (4) Japanese libraries aredigitizing catalogs on a grand scale; (5) distributed digital libraries willrevolutionize education and learning; (6) Japan has a clearly articulatednational information infrastructure policy that views DIO as critical to "anadvanced information society." These and other conclusions are reviewed indetail in the panel's executive summary.