Japan Proposes To Co-Develop Australian Submarines

Japan has proposed to co-develop Australia's new submarines, instead of exporting a new fleet, the local daily Mainichi Shimbun reported.

Under the proposal, Japan's defence ministry is to cooperate with Australia in developing special steel and other materials for its new submarines, while Tokyo will be in charge of assembling them.

The two countries may strike a deal by the end of 2015, according to the report. But nothing is confirmed yet.

Australia needs to replace its fleet of diesel and electric-powered subs, which date from the 1990s, and Japan's high-tech ship-building industry is through to be well-placed to win the contract.