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Japan May Buy Up To $475 Million Of Standard Missile-3 Systems

By | June 11, 2007

      Japan may buy up to $475 million of Standard Missile-3 assets, a move coming as a belligerent North Korea increasingly demonstrates missile technology.

      The deal isn’t yet final.

      The Defense Security Cooperation Agency (DSCA) notified Congress of a possible Foreign Military Sale to Japan of SM-3 Block IA missiles as well as associated equipment and services.

      The total value, if all options are exercised, could be as high as $475 million.

      Japan requested a possible sale of nine SM-3 Block IA Standard missiles with MK 21 Mod 2 canisters, Ballistic Missile Defense (BMD) upgrades to one Aegis Weapon System, Aegis BMD Vertical Launch System ORDALTs, containers, spare and repair parts, publications, documentation, supply support, U.S. Government and contractor technical assistance and other related elements of logistics support.

      Japan is one of the major political and economic powers in East Asia and the Western Pacific and a key ally of the United States in ensuring the peace and stability of this region.

      The U.S. Government shares bases and facilities in Japan. It is vital to the U.S. national interest to assist Japan to develop and maintain a strong and ready self-defense capability, which will contribute to an acceptable military balance in the area, DSCA noted. This proposed sale is consistent with these U.S. objectives and with the 1960 Treaty of Mutual Cooperation and Security.

      Although comparable weapons are not currently deployed in Northeast Asia, the proposed sale of SM-3 missiles and BMD upgrades to the Aegis Weapon System will not significantly alter the existing military balance in the region as the proposed sale enhances only defensive capabilities, according to DSCA.

      Principal contractors will be:

      Lockheed-Martin Corp. [LMT] Maritime System and Sensors Moorestown, N.J.

      Raytheon Co. [RTN] Equipment Division, Tucson, Ariz.

      BAE Minneapolis, Minn.

      There are no offset agreements proposed in connection with this potential sale.

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