Inside Australia & Japan’s warship deal worth $7bn: Report

A new contract has just been signed, whereby Japan and Australia will see a handoff of nearly 11 warships that are to be delivered to the Australian navy, under a defense deal that is worth over $7 billion.

An announcement was also made by Australia’s Defence Minister Richard Marles, and Japanese Defence Minister Koizumi Shinjiro on Saturday, in Melbourne ahead of the signing ceremony.

The deal dubbed Mogami Memorandum” aims to create “closer industrial cooperation” in regards to defence as well as deeper military ties between the countries.

Those in charge of this 3 of the stealth frigates on Japan’s side are Mitsubishi Heavy Industries, according to Al Jazeera and the other side is being managed by Australia’s Austal.

The first delivery has also been planned for 2029, and the ship itself is slated to start its service in 2030.

Australia’s Defence Minister has also issued a separate statement that reads, “Our surface fleet is more important than at any time in decades. These general-purpose frigates will help secure our maritime trade routes and northern approaches as part of a larger and more lethal surface combatant fleet.”

What is pertinent to mention is that this deal is part of an overhaul to increase the country’s defense budget by nearly 3 percent, of its gross domestic product (GDP) by 3033, a move not seen since World War II.