SYDNEY — Japan has taken an important step forward in its burgeoning efforts to sell a major weapon system to another country, with its National Security Council formally approving the sale of Mogami-class warships to Australia for its General Purpose Frigate program.
The Foreign Ministry released a statement Nov. 28 detailing the decision, noting how important is Japan’s relationship with Australia. Japan has never sold a modern major weapon system to another country.
“As stated in the National Defense Strategy, Australia will establish a close cooperation relationship second only to Japan-US defense cooperation as a ‘special strategic partner’ in the Indo-Pacific region,” the statement says.
“Based on such a policy, the joint development and production of this case will contribute to a significant improvement in interoperability and compatibility with Australia, as well as strengthening the shipbuilding and maintenance infrastructure in the Indo-Pacific region and improving the capacity of our ships in the future, and is of great significance to the country’s security.”
The Mogami, built by Mitsubishi Heavy Industries (MHI), is currently in service in the Maritime Self Defense Force. For the $10 billion AUD ($6.6 billion USD) competition, MHI is up against ThyssenKrupp Marine Systems (KTMS), builder of Australia’s current Anzac-class frigates, who is offering the Meko A-200, an upgraded version of the 30-year-old Anzacs.
Michael Shoebridge, founder of Strategic Analysis Australia, told Breaking Defense in an email that should Australia decide to buy the Mogami-class instead of a German ship, “It would fundamentally increase [Japan and Australia’s] militaries’ ability to operate together and strengthen the defense industrial bases of both nations.”
“Japan has an excellent chance of success in this program, particularly if the broader technological partnership it will enable is understood clearly at government level in both nations,” wrote Shoebridge, well-known as an acquisition expert here.
The Germans do not have any formal defense ties with Canberra, while Japan has been strengthening its military ties to Australia through moves such as the Reciprocal Access Arrangement and new troop rotations announced just last month.
“The Australian navy’s ageing ANZAC frigates are a German design, but that construction project is decades old, so any incumbency benefits have shrunk,” Shoebridge said. “German companies are well-practiced at overseas defense sales, however, so if Australia runs the selection like a normal commercial activity, then Japan will be disadvantaged. It’s important [Canberra] see this as a joint government and industry program.”
Should Japan win the final selection, expected to occur by the middle of next year, “it would catapult Japan into an AUKUS Pillar Two-like partnership on advanced military technology with Australia and open doors to broader cooperation in this Pillar Two area, where Japan has obvious strengths,” Shoebridge said.
“The fact that the Japanese Government and MHI are offering to build Mogami class frigates for and with Australia is a remarkable statement about the strategic and technological partnership they see as possible between our two countries, particularly after the setback from the submarine decision a decade ago. Australia should understand Japan’s serious and positive purpose in making this offer at this time.”
One interesting tidbit in the announcement is that Japan will, as America does, retain veto power over the transfer of the weapon to a third party — another sign it is serious about becoming more of a defense export player on the global market.