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December 22, 2020 | International, Aerospace
Japan releases record-high budget, but not all programs made the cut
By: Mike Yeo
MELBOURNE, Australia — Japan's defense budget for the next fiscal year will set a record high for the seventh year running, although the approved figure is still lower than that requested by the Defense Ministry.
The country's Finance Ministry approved a budget of $51.5 billion for the Defense Ministry, which is $3.5 billion lower that the Defense Ministry requested in September.
Funds expected to upgrade Japan's fleet of fighter jets were removed as part of the reduction. Specifically, the request for $205 million to upgrade the Japan Air Self-Defense Force's F-15J Eagle interceptors was cut in full. The upgrade would have seen the interceptors get new radars and mission computers, and equipped with standoff land-attack missiles. But local media reports said the escalating costs of nonrecurring engineering work prompted a rethink of the program.
Japan requested and received the U.S State Department's approval for the upgrade of up to 98 F-15Js for an estimated cost of up to $4.5 billion. The work would have been carried out by F-15 manufacturer Boeing in conjunction with Mitsubishi Heavy Industries, which built the Japanese jets under license in the 1980s.
Plans to buy two more Kawasaki C-2 airlifters and 25 wheeled Type 16 combat vehicles were also impacted, with the adjusted budget now allocating funds for only one C-2 and 22 Type 16.
However, plans for Japan to acquire four more Lockheed Martin F-35A conventional-takeoff-and-landing jets and two F-35B short-takeoff-and-vertical-landing jets over the next fiscal year will go ahead.
Japan has an eventual requirement for 105 F-35As and 42 F-35Bs, which makes it potentially the biggest operator of the Joint Strike Fighter outside of the United States. The country announced earlier this week that it selected Lockheed Martin to partner with local industry in the development of a next-generation fighter jet.
The approved budget also allocates $323 million to increase the range of the indigenous truck-launched Type 12 anti-ship missile, with Japan seeking to eventually use the missile from aircraft and ships to strike naval targets from standoff distances.
Budget documents also confirmed Japan is conducting a feasibility study on building two more destroyers fitted with the Aegis combat system and radars to beef up ballistic missile defense. The move follows the decision to cancel plans to build two Aegis Ashore systems on Japanese soil due to the danger of boosters from the missile interceptors falling onto populated areas.
Previous local media reports said the proposed destroyers would use the Lockheed Martin AN/SPY-7(V)1 radar, which was also selected by Japan for the canceled Aegis Ashore systems.
The budget is for the forthcoming Japanese fiscal year, which starts April 1, 2021.
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January 27, 2021 | International, Land
Raytheon Expects Biden to Block $500M Bomb Sale to Saudi Arabia
Yet industry executives believe foreign arms sales will remain a priority of the new administration. BY MARCUS WEISGERBER GLOBAL BUSINESS EDITOR JANUARY 26, 2021 02:51 PM ET Raytheon Technologies executives told investors Tuesday that it expects the Biden administration to block at least one arms deal to a Middle Eastern ally as the U.S. shifts its weapons export policy. Raytheon CEO Greg Hayes, speaking on the company's quarterly earnings call, said Raytheon has removed from its books a $519 million projected sale of an “offensive weapon system” to a “customer in the Middle East...we can't talk about.” On the same call, CFO Toby O'Brien said the sale involves an “offensive munition.” The scale of the deal indicates that the execs were referring to the planned sale of some 7,500 Paveway bombs to Saudi Arabia. Last April, Raytheon said in a regulatory filing that its arms sales could be hurt by lawmakers' concerns about Riyadh's role in Yemen's civil war and about the Saudi crown prince's involvement in the murder of a U.S.-based Saudi journalist. Still, in December, Bloomberg reported that the Trump administration was moving ahead with the sale. “We had assumed that we were going to get a license to provide these offensive weapon systems to our customer,” Hayes said. “With the change in administration, it becomes less likely that we're going to be able to get a license for this. And so we appropriately decided that we could no longer support the booking of that contract.” During his Senate confirmation hearing last week, now-confirmed Secretary of State Anthony Blinken said the Biden administration would “end our support for the military campaign led by Saudi Arabia in Yemen.” Still, Hayes said the company does not anticipate issues selling defensive weapons, like Patriot missile interceptors, and other types of arms in the region. “Look...peace is not going to break out in the Middle East anytime soon,” Hayes said. “I think it remains an area where we'll continue to see solid growth.” Similarly, Lockheed Martin CEO Jim Taiclet expected foreign arms sales to remain a priority in the Biden administration. “As far as international business, including foreign military sales, the tendency of the people in the Biden administration [and] in the president's own statements, reiterate his view that alliances are important that they need to be cultivated, and that they have real value in deterrence and national defense,” Taiclet said. “I do think that we'll have a more open environment for [foreign military sales] and direct commercial sales to our international partners.” Taiclet said foreign weapon sales are a way to generate American jobs and stimulate the U.S. economy. “If jobs and the economy are important, the promotion of international defense sales, one would surmise, would also be important,” Taiclet said Tuesday morning on Lockheed's quarterly earnings call. While arms sales create jobs growth, a 2019 Center for International Policy report said those claims, particularly during the Trump administration, were greatly exaggerated. Still Taiclet, a former U.S. Air Force pilot, said arms sales are a way to deepen relationships with an ally. “I can tell you that there's no better way to get a tighter bond with an ally than sell them jet fighter aircraft,” he said. “All the way back in the mid-[19]80s, when I was in pilot training, we had Saudis in our class, for example.” https://www.defenseone.com/business/2021/01/raytheon-expects-biden-block-500m-bomb-sale-saudi-arabia/171645/