Based on 2 years of research, this comprehensive report of education in Japan is matched by a simultaneously-released counterpart Japanese study of education in the United States. Impressive accomplishments of the Japanese system are described. For example, nearly everyone completes a rigorous core curriculum during 9 compulsory years of schooling, about 90 percent of the students graduate from high school, academic achievement tends to be high, and schools contribute substantially to national economic strength. Reasons for Japanese successes include: clear purposes rooted deeply in the culture, well-defined and challenging curricula, well-ordered learning environments, high expectations for student achievement, strong motivation and effective study habits of students, extensive family involvement in the mission of schools, and high status of teachers. Problems and criticisms are noted, including inattention to variations in students' abilities and needs, rigidity and uniformity of the system, and insufficient concern for development of creative and independent thinking. Current education reform efforts are described. Implications of this report for U.S. education are discussed in a special Epilogue by U.S. Secretary of Education, William J. Bennett, who endorses several qualities of the Japanese system, such as high standards for all students, cultural literacy developed through the school curriculum, and strong parental involvement in the education of their children. A glossary and appendix containing statistical data, a bibliography, a list of papers commissioned for the United States Study of Education in Japan, basic references, brief facts about Japan, and a map of Japan conclude the document. Appended are the U.S. Press Release (dated January 3, 1987) announcing release of the report and the matching Japanese statement announcing release of the counterpart Japanese report entitled "Educational Reform in the United States." (JP)