Japan tells U.S. it may halt F-35 purchase if prices rise

The Mainichi Daily News ^ | February 23, 2012

[sukhoi-30mki]

Japan tells U.S. it may halt F-35 purchase if prices rise

TOKYO (Kyodo) -- The Defense Ministry has indicated to the U.S. Department of Defense the possibility of halting purchases of the F-35 stealth jet, which Japan has picked as its next-generation mainstay fighter, if prices skyrocket, sources close to Japan-U.S. ties said Wednesday.

In a letter dated Feb. 13, the ministry expressed its concern to the Pentagon over a rise in the price tag of the F-35, which is being developed by an international consortium led by U.S. aircraft maker Lockheed Martin Corp., the sources said.

The ministry also requested a review of the procurement system under a foreign military sales arrangement that allows the United States to change prices at its discretion, the sources said.

The U.S. military has postponed orders for 179 F-35 fighter planes for five years as part of its fiscal 2013 defense budget plan due to delays in the aircraft's development, making the prospect of mass production uncertain. The expected price of the F-35 jets for the U.S. military has also risen.

Japan announced in December that it had decided on the F-35 for the Air Self-Defense Force's next-generation fighter, replacing the country's aging F-4 fleet. The F-35 was chosen over two other models when its price tag was not fixed and amid concern over possible delays to the first delivery of the aircraft to Japan.

The letter was sent by Hideshi Tokuchi, chief of the ministry's bureau of finance and equipment, and addressed to Frank Kendall, acting under secretary of defense for acquisition, technology and logistics.

Tokuchi said in the letter that the possibility of canceling the F-35 procurement in the event its price rises cannot be denied. If the price does go up and the matter is deliberated in parliament, it would "invite severe criticism" and "jeopardize" the F-35 procurement plan, he said.

"I do hope that you share the view that a price increase is not an option for us," Tokuchi said.

The ministry also urged a revision to the foreign military sales process, which only allows Japanese companies to be subcontractors under U.S. firms.

The ministry has voiced "serious concerns" over this limitation and requested the early start of Japanese companies' participation in production of parts and assembly of airplane bodies and engines, the sources said.

Washington has the final authority regarding the price and time frame of delivery.

Japan is eyeing domestic companies' participation in the production as much as possible in a bid to boost the country's defense industry.

The ministry has said it plans to procure four F-35 jets in fiscal 2012 starting April. In that fiscal year, each aircraft has been estimated to cost about 8.9 billion yen, or 9.9 billion yen per aircraft including spare parts.

The price is almost the same as the planned price for the U.S. Air Force, according to the ministry.

But the U.S. defense budget for fiscal 2013 starting October this year, announced last week, estimated the planned price for the U.S. military at about $153 million dollars, or roughly 12.2 billion yen.

(Mainichi Japan) February 23, 2012

[U-238]

Offer them an alternate.DSCA cannot let them get away.

[U-238]

Offer them an alternate.DSCA cannot let them get away.

[Red Dog #1]

"The U.S. military has postponed orders for 179 F-35 fighter planes for five years as part of its fiscal 2013 defense budget plan due to delays in the aircraft's development, making the prospect of mass production uncertain. The expected price of the F-35 jets for the U.S. military has also risen."

I'm shocked, just shocked...didn't former Defense Secretary Gates assure just months ago, while canceling the F-22, that the administration was fully on board with the F-35?

As an Afghan commander once told his American adviser after being caught in a bold face lie "the truth changes".

[diogenes ghost]

Japan refusing to pay peacock prices for turkeys?

[Zhang Fei]

The Japanese have a long history of driving very hard bargains on both price and tech transfer. They basically got every bit of knowledge we had on the F-16, yet were unable to develop their own next gen front line fighter independently. It’s a fool’s game. As long as they’re unable to export their weaponry, all the tech transfer in the world isn’t going to build them a self-sufficient, up-to-date defense industry, especially when they keep cutting their defense budget. During the recent Senkaku provocations, the Japanese said they would assume a more assertive defense posture. Then they cut their defense budget. This wasn’t an American-style increase-by-less-than-previously-planned-equals-budget-cut. They actually reduced the year-to-year budget number.

[NVDave]

In the end, no one will be able to afford this white elephant.