June 11 (Bloomberg) -- Japan's national swimming team, under contract with three domestic brands, will be allowed to use the U.K.'s Speedo LZR Racer swimsuit at the Beijing Olympics after Japanese swimmers broke records wearing the controversial apparel.

The Japan Swimming Federation said yesterday it will not require Japanese swimmers to wear swimsuits made by Mizuno Corp., Asics Corp. and Descente Ltd. in Beijing, despite its contractual obligations to the companies.

``This is a decision to bring about the best results at the Olympics,'' Japan Swimming federation Executive Director Kazuo Sano said at a news conference shown on national broadcaster NHK. ``We believe the domestic suppliers will continue to work toward improving their own swimwear.''

The ruling brings to end a debate that has preoccupied the Japanese media in recent months and largely overshadowed the performances of the Japanese swimmers in the run-up to the Olympics. The Swimming Federation said it came to its decision after watching the records broken at the Japan Swim 2008 in Tokyo, which ended June 8, by swimmers wearing the Speedo suit.

Kosuke Kitajima, Japan's double Olympic champion, won the 200-meter breaststroke with a time of 2 minutes 7.51 seconds at the event, shaving almost a second off the world record held by U.S. swimmer Brendan Hansen.

A total of 16 of 17 national records set at the three-day event were by swimmers wearing the Speedo LZR Racer, Kyodo News reported yesterday. Hanae Ito, another Japanese Olympic medal hopeful, won the women's 200-meter backstroke in a personal-best time wearing the Speedo suit in Rome on June 8, Kyodo reported.

`Power and Agility'

London-based Speedo International, which introduced the LZR Racer in January, said the suit was worn by swimmers breaking 37 world records as of April 25.

The suit has led to criticism that technology is having too great an influence on swimmers' performance, although the sport's governing body, the Federation Internationale de Natation, has approved its use for international competition.

Speedo says its suit, which features ultrasonically welded seams and a water repellant material to reduce drag, compresses the swimmer's body into a more streamlined shape, ``enabling them to cut through the water with more power and agility.''

Mizuno started its own brand of swimwear last year, ending a technical and licensing agreement with Speedo in place since 1966. The three Japanese companies presented new designs to the Japan Swimming Federation on May 30, following the controversy over the Speedo suits, Kyodo reported yesterday.

Goldwin Inc., the marketer of Speedo swimsuits in Japan, soared by its daily limit of 80 yen to 459 yen on the Tokyo Stock Exchange, the highest since January 2006. Mizuno fell 4 yen, or 0.7 percent, to 624, while Descente declined 4 yen to 602. Asics added 26 yen, or 2.1 percent, to 1,240.

To contact the reporter on this story: Stuart Biggs in Tokyo at sbiggs3@bloomberg.net.

Last Updated: June 11, 2008 03:44 EDT