Despite this, the Type was always considered a low priority and there was no demand for large numbers of the gun. Inthe Japanese government acquired the production rights to the weapon and ordered a further production run at the Kokura and Nagoya Arsenals. The resultant weapon was known as the Type 3 as it was one of three submachine gun prototypes that Nambu had developedand was adopted in as the Type Nambu produced the Type in low volumes and it was accepted into military service, seeing very limited issue with Japanese Marines in China. Nambu himself acted as lead designer on the project. However, the effective use of submachine guns by Chinese forces at Shanghai, in addition to their extensive use in the European theater, forced the IJA to reconsider their stance. The official military attitude towards submachine guns in Japan was generally dismissive and there were initially no concerted efforts to investigate the adoption of such a weapon prior.

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It was the most widely-produced of Japan's indigenous submachine gun designs during the war.

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