MELBOURNE, April 18 (Bernama-Kyodo) -- Japan and Australia said Saturday they have concluded a contract to jointly develop a new fleet for the Australian Navy based on the upgraded Japanese Mogami-class frigate, Kyodo News reported.
The confirmation came when Japanese Defence Minister Shinjiro Koizumi and his Australian counterpart Richard Marles held talks in Melbourne.
Koizumi said during the meeting that he hopes to take Japan's relations with Australia to new heights.
The vessels are expected to be initially built in Japan, effectively making the deal a de facto export of Japanese-designed warships.
Japan's rules for defence equipment transfers place strict limits on the export of weapons with lethal capabilities but allow such exports when they are part of joint development and production projects.
Japan views Australia as a "quasi-ally" and a key partner in maintaining stability in the Indo-Pacific.
-- BERNAMA-KYODO
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