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#21 JasonJ

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Posted 13 September 2016 - 0920 AM

US-2 deal seems to have failed because of tech and price disagreements but another attempt seems to be on the way to sell to India at reduced cost.

 

NEW DELHI: Japan is negotiating the sale of Shinmaywa US-2 search and rescue aircraft with India not for any economic gain but because it considers India a friendly country, Tokyo has said amid reports that the deal for 12 amphibious aircraft had collapsed over pricing and technology transfer issues.

Top Japanese defense ministry sources told TOI in an exclusive interaction that they would look at reducing the price for the $ 1.6 billion aircraft deal ?as much as possible, in a fresh attempt to revive the negotiations.

The agreement, if it happens, will have a huge symbolic significance as a message to China about deepening defense and security cooperation between India and Japan, both victims of Chinese territorial aggression.

"Our position is that if this agreement happens, it will have a very favorable impact on our relations with India,'' said a Japanese defense ministry official.

"We understand there are some consultations underway in India over pricing. Pricing is determined by several factors. We are not doing this for economic gains but for our friendly relations with India and can look at reducing the price to the extent possible," added the official.

Japan is now hoping that there will be some progress in negotiations by the time PM Narendra Modi visits Tokyo later this year for the annual summit meet. Known for its short takeoff capability, the aircraft was meant to be deployed in the Andaman Nicobar Islands.

After Japan overturned its self-imposed 1967 ban on export of arms in 2014, India was expected to become the first country to purchase defense equipment from Japan with an agreement for US-2 aircraft. India and Japan had last year, after the summit meeting between Modi and his counterpart Shinzo Abe, signed an agreement for transfer of defense equipment and technology.

The 2 leaders had then said that they wanted to to deepen the bilateral defense relationship through two-way collaboration and technology cooperation, co-development and co-production. They had also expressed an intention to explore ``potential future projects on defense equipment and technology cooperation such as US-2 amphibian aircraft''.

The negotiations for the aircraft though were left in limbo with serious differences over pricing and India's demand that the aircraft come with state-of-the -art surveillance technology. Japanese officials, however, said there was no sensitive technology involved with the US-2 and wanted to treat it as a regular search and rescue seaplane only. India also wants co-production here as the government believes it can provide an impetus to the Make in India initiative.

According to Japanese defense ministry officials, manufacturing in India would be feasible only if the agreement comprised sale of a certain number of aircraft. ``If the number is too few, it would not be cost effective for India,'' said the official.

Maritime security is one of the key areas in Japan's cooperation with India. Japan, which is now participating regularly in India's Malabar exercise with the US, has encouraged India to speak up on issues related to South China Sea.

Japan is currently having to contend with an increasing assertive China in East China Sea where Chinese vessels continue to enter Japanese territorial waters in large numbers. While the Chinese coast guard have repeatedly ventured into Japan's contiguous zone and territorial seas near Senkaku (Chinese call it Diaoyu) islands, a Chinese navy vessel entered the contiguous zone for the first time in June this year. Japanese authorities see this as fresh escalation by China.

 

http://economictimes...ow/54274427.cms
 


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#22 JasonJ

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Posted 28 October 2016 - 1033 AM

After reducing the price, US-2 deal back on track.

 

This week, India and Japan have reportedly moved closer toward concluding the first-ever bilateral defense deal between the two countries, unnamed Indian military officials told Defense News. An official with India’s Ministry of Defense (MOD) claims that New Delhi and Tokyo have agreed on a price for 12 ShinMaywa US-2i amphibious search-and-rescue/maritime surveillance aircraft for service in the Indian Navy.

“Japan has offered a price concession of more than 10 percent per aircraft from $133 million per aircraft to around $113 million, and the $1.35 billion government to government deal for US-2 amphibious aircraft is now ready for finalization,” the official told Defense News on the condition of anonymity. Last week, Japanese defense contractor ShinMaywa Industries said that the Indian MOD has still not made an official request for the aircraft.

So far the Indian MOD has only indicated that it would like to purchase two US-2i aircraft in fly-away condition, whereas the remaining ten (sources say that the Indian Navy requirement is pegged at 12-18 aircraft) should be built in India under Indian Prime Minister Narendra Modi’s ‘Make in India’ initiative. ShinMaywa, however, thinks that license-building ten US-2i is impracticable and too costly given the small number of aircraft.

Consequently, while settling on a price shows some progress, it is far from a done deal, as a spokesperson from Japan’s (MOD) told IHS Jane’s Defense Weekly in early October. “In order to move on to stages of discussion on specific conditions of co-operation [the Japan] Ministry of Defense hopes that the Indian side will establish its procurement policy as soon as possible.” Furthermore, “after India has determined its procurement policy we would like to flexibly respond to requests from India and make our co-operation concrete.”

As the The Diplomat summarized in 2015:

Negotiations for a US-2 sale to India began in Japan under the Democratic Party of Japan (DPJ) governments of Naoto Kan and Yoshihiko Noda. The amphibious aircraft sale issue was swiftly picked up by Abe’s government, which has sought to expand Japan’s role as a defense exporter in Asia. In April 2014, the Abe administration formally altered Japan’s decades-old self-imposed ban on selling arms, which effectively blocked Japanese firms from participating in global defense commerce. (For more background on Japan’s export policies, see here.)

In December 2015, Indian Prime Minister Narendra Modi and Japanese Prime Minister Shinzo Abe agreed to deepen defense ties between the two countries specifically naming the US-2i aircraft as a project for future cooperation. Despite that, in March 2016, a senior Japanese government official said that there is no plan for “selling or delivering” the US-2i maritime surveillance aircraft in the immediate future.

“Given its range of 4,500 kilometers (2,796 miles), the Indian Navy was tentatively planning to station the USi-2 aircraft off the Andaman and Nicobar Islands in the Bay of Bengal, from where they would have been able to conduct surveillance patrols of the eastern Indian Ocean region,” I explained elsewhere.

The export of search-and-rescue aircraft would be Japan’s first defense deal in its post-war history.

 

http://thediplomat.c...-moves-forward/


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#23 JasonJ

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Posted 13 September 2017 - 2213 PM

The negotiations dragged on since the above post. Abe and Modi are having a summit in India now and there a reports that this time a deal on the sale of US-2 might be made.

As Japanese Prime Minister Shinzo Abe arrives in India, there are rumors once again that this visit will be the one to see the conclusion of a long-pending defense deal between India and Japan.

According to local Indian reports, the presumptive deal that may be announced will include a 10-to-15 percent discount on the per-unit cost of each ShinMaywa US-2i amphibious aircraft, coming in at a total value of around $1.3 billion.

India would purchase 12 of the aircraft off-the-shelf and may produce up to 18 more domestically, in line with Indian Prime Minister Narendra Modi’s “Make in India” initiative.

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The deal would represent Japan’s largest overseas defense deal since it lifted its decades-long self-imposed ban on defense exports in 2014. It would additionally represent an important milestone in the India-Japan strategic relationship.

Since 2014, despite political sanction at the highest levels in both countries, negotiations had been bogged down over New Delhi’s concerns regarding the per-unit price and questions regarding potential technology transfer and domestic manufacturing in India.

For India, the short-take-off-capable ShinMaywa US-2 would add an important search-and-rescue capability in the Indian Ocean region. India may base the aircraft at the Andaman and Nicobar Island in the Bay of Bengal among other sites; the 4,500 km range of the aircraft would allow the US-2 aircraft to support civilian and naval vessels alike deep in the Indian Ocean.

On Monday, the Hindu‘s Business Line reported that during Indian Defense Minister Arun Jaitley’s recent visit to Japan on September 5 and 6, the final questions surrounding pricing were settled.

Jaitley met with his counterpart Itsunori Onodera, who returned to the Japanese defense portfolio in August following a cabinet reshuffle.

Onodera had presided over earlier negotiations as well on the deal, which dates back to before Abe’s administration, to the Democratic Party of Japan governments of Prime Ministers Yoshihiko Noda and Naoto Kan.

According to the Hindu, the deal will be announced during Abe’s visit to India, where he will confer with Modi on a range of issues of bilateral, regional, and global importance.

Since India and Japan set up their Strategic and Global Partnership in 2006, they have had annual rotating prime ministerial meetings; the arrangement is the only reciprocal arrangement of its kind for either country at the head-of-government level.

Defense ties between India and Japan have steadily expanded since the mid-2000s. The two countries began holding bilateral military exercises in 2012 and Japan now is a regular participant in the formerly bilateral U.S.-India Malabar drills.

This year’s exercise in the Indian Ocean involved a major focus on anti-submarine warfare. Japan’s first Izumo-class helicopter destroyer, the largest class of vessel in service with the Japanese Maritime Self-Defense Force, participated alongside India’s INS Vikramaditya aircraft carrier.

In addition to the conclusion of the long-pending US-2 deal, there are other prospects for Japan-India defense commercial cooperation.

Earlier this summer, Japan’s Mitsubishi-Kawasaki consortium received a Request For Information (RFI) from the Indian Navy for an $8 billion advanced air-independent propulsion (AIP) attack submarine contract.

https://thediplomat....t-defense-deal/


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#24 mnm

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Posted 18 September 2017 - 0052 AM

This report speculates that perhaps, the balancing float was hit by a something large like a whale during take off causing the right wing to sink into the water thus causing one of the engines to get blown off from going below the sea surface.

Fookn' Japs can't leave whales alone!
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#25 JasonJ

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Posted 18 September 2017 - 0209 AM

 

This report speculates that perhaps, the balancing float was hit by a something large like a whale during take off causing the right wing to sink into the water thus causing one of the engines to get blown off from going below the sea surface.

Fookn' Japs can't leave whales alone!

 

 

That whale's fault for coming near the home islands.


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