The need for higher education institutions in the U.S. and foreign countries to engage in an exchange of students, faculty members, and educational and cultural information is stressed. The current program of exchanging student and faculty members in Japan and the U.S. is summarized. The use of the College and University Partnership Program (CUPP) is recommended as a way to improve the current exchange program with Japan. The CUPP program is described as a program that will involve, for the first time, the lesser known, "grassroots" institutions in the Japan-U.S. exchange program. CUPP pilot exchange programs between 11 Japanese and American institutions and the CUPP program administration are described. In addition to the study program, Japanese exchange students also participate in a 2-week homestay and a community visit called the "American Heritage Program." This program is also discussed. (SPG)