Govt mulls $20bn defence deal with Japan | Business Spectator
Australia is close to buying up to 10 submarines from Japan for as much as $20 billion in a move that would turn the north Asian country into a weapons exporter for the first time since World War II.
The deal, which senior defence officials said they expect to be signed this year, risks stoking regional tensions since it positions Tokyo as a major guarantor of Australia's security at a time when relations between China and some of its neighbours, including Japan, are strained.
A purchase of Japanese submarines also sits uncomfortably next to the Abbott government's pre-election pledge last year to build a new fleet at home to help support the nation's struggling ship builders. On Monday, Prime Minister Tony Abbott said his government wanted to support the manufacturing industry, but not at the expense of national security.
"The most important thing is to get the best and most capable submarines at a reasonable price to the Australian taxpayer," he told reporters. "We should make decisions based on defence requirements, not on the basis of industry policy."
Toru Hotchi, director of the equipment-policy division at Japan's Defense Ministry, said, "Since Japan and Australia have reached an agreement concerning the transfer of defense equipment and technology in July, we are cooperating in various aspects." He declined to say whether that included submarines.
Australia sees a submarine fleet as necessary to protect the country's vast maritime borders, as well as to defend sea lanes vital for its raw-materials exports, and to patrol some of the world's largest offshore oil-and-gas projects.
Canberra has for some time expressed a strong interest in buying Japan's Soryu-Class stealth submarines to replace its own aging Collins-Class fleet of six boats, which face rising maintenance costs as they approach the end of their working lives.
The 4,200-tonne Soryu, or Blue Dragon, is the world's largest diesel-electric submarine, jointly built by Mitsubishi Heavy Industries and Kawasaki Heavy Industries. The boats are driven by an ultraquiet air-independent propulsion system that lets it operate underwater for almost two weeks at a time.
The Australian-built Collins are among the world's biggest diesel-electric submarines and have longer range, but have been plagued over their 18-year lifespan by issues around noise and reliability.
A decision to buy the Japanese submarines this year would be sooner than defence analysts had expected, given the government is due to publish a major defence-strategy blueprint early next year.
While competing French and German submarines hadn't yet been completely ruled out, several senior defence figures told The Wall Street Journal that a decision on the Japanese vessels gained momentum following Japanese Prime Minister Shinzo Abe's July visit to Canberra, aimed at strengthening military ties amid China's regional muscle-flexing.
"The exact details haven't been finalised," one of the officials said. "But it's very close -- before the end of this year. The Japanese are strong favourites."
The Soryu submarines can travel for up to 11,000 kilometres before having to return to base. That is a shorter distance than the Australian government had originally hoped for, considering Canberra's wish to safeguard shipping routes through disputed waters in Asia, where China has recently jousted with Vietnam and the Philippines.
One option Australia has is to shift its submarine port-and-maintenance facilities to Darwin, closer to other countries in Asia, from Perth and Sydney where they are currently situated. Such a base could also give better support to visiting US nuclear submarines, as Canberra looks to deepen security ties with its closest ally.
It was unclear whether Australia would buy off-the-shelf boats built solely in Japan. Maintenance and possibly some fitout work would be carried out in Australia.
Australia is close to buying up to 10 submarines from Japan for as much as $20 billion in a move that would turn the north Asian country into a weapons exporter for the first time since World War II.
The deal, which senior defence officials said they expect to be signed this year, risks stoking regional tensions since it positions Tokyo as a major guarantor of Australia's security at a time when relations between China and some of its neighbours, including Japan, are strained.
A purchase of Japanese submarines also sits uncomfortably next to the Abbott government's pre-election pledge last year to build a new fleet at home to help support the nation's struggling ship builders. On Monday, Prime Minister Tony Abbott said his government wanted to support the manufacturing industry, but not at the expense of national security.
"The most important thing is to get the best and most capable submarines at a reasonable price to the Australian taxpayer," he told reporters. "We should make decisions based on defence requirements, not on the basis of industry policy."
Toru Hotchi, director of the equipment-policy division at Japan's Defense Ministry, said, "Since Japan and Australia have reached an agreement concerning the transfer of defense equipment and technology in July, we are cooperating in various aspects." He declined to say whether that included submarines.
Australia sees a submarine fleet as necessary to protect the country's vast maritime borders, as well as to defend sea lanes vital for its raw-materials exports, and to patrol some of the world's largest offshore oil-and-gas projects.
Canberra has for some time expressed a strong interest in buying Japan's Soryu-Class stealth submarines to replace its own aging Collins-Class fleet of six boats, which face rising maintenance costs as they approach the end of their working lives.
The 4,200-tonne Soryu, or Blue Dragon, is the world's largest diesel-electric submarine, jointly built by Mitsubishi Heavy Industries and Kawasaki Heavy Industries. The boats are driven by an ultraquiet air-independent propulsion system that lets it operate underwater for almost two weeks at a time.
The Australian-built Collins are among the world's biggest diesel-electric submarines and have longer range, but have been plagued over their 18-year lifespan by issues around noise and reliability.
A decision to buy the Japanese submarines this year would be sooner than defence analysts had expected, given the government is due to publish a major defence-strategy blueprint early next year.
While competing French and German submarines hadn't yet been completely ruled out, several senior defence figures told The Wall Street Journal that a decision on the Japanese vessels gained momentum following Japanese Prime Minister Shinzo Abe's July visit to Canberra, aimed at strengthening military ties amid China's regional muscle-flexing.
"The exact details haven't been finalised," one of the officials said. "But it's very close -- before the end of this year. The Japanese are strong favourites."
The Soryu submarines can travel for up to 11,000 kilometres before having to return to base. That is a shorter distance than the Australian government had originally hoped for, considering Canberra's wish to safeguard shipping routes through disputed waters in Asia, where China has recently jousted with Vietnam and the Philippines.
One option Australia has is to shift its submarine port-and-maintenance facilities to Darwin, closer to other countries in Asia, from Perth and Sydney where they are currently situated. Such a base could also give better support to visiting US nuclear submarines, as Canberra looks to deepen security ties with its closest ally.
It was unclear whether Australia would buy off-the-shelf boats built solely in Japan. Maintenance and possibly some fitout work would be carried out in Australia.
U.S wants Japan to beef up military and SELL. think you mean China or Korea.
