TOKYO – The Australian government conveyed to the Japanese government on Monday that it plans to prioritize Japan over Germany in negotiating a deal for building a fleet of new frigates for its navy, a Japanese government source said.
The deal, if closed after both sides can agree on prices, would mark a major arms export from Japan following an ongoing project between Japan, Britain and Italy to jointly develop a next-generation fighter jet.
The Australian project calls for spending up to AU$10 billion ($6.48 billion) to build 11 frigates with an eye toward bringing the first into service in 2029.
The Australian, a Sydney-based newspaper, reported earlier in the day that Canberra is expected to decide this week on whether to partner with Japan or Germany in the project to replace its aging Anzac-class frigates.
In competing with Germany over the potential major arms deal, Japan has proposed jointly developing frigates based on the Mogami-class vessels used by its Maritime Self-Defense Force.
However, the Mogami-class frigates are believed to be costlier than the ones proposed by Germany, as well as a potentially riskier choice due to Japan’s lack of experience in building warships overseas, according to The Australian.
Japan has stringent transfer rules for defense equipment capable of projecting a high degree of lethal force, but transfer is allowed for such equipment that is jointly developed and produced.
The Japanese government determined at its National Security Council in November that Japan could participate in the frigate project. The following month, it launched a group together with defense contractors such as Mitsubishi Heavy Industries Ltd. to lead Tokyo’s bid to be a partner in the Australian project.
Japan has touted its Mogami-class frigates, built by Mitsubishi Heavy Industries, as stealthy vessels that require fewer crew members to operate.
AloJapan.com