Japan asks for explanation on ‘deeply regrettable’ decision to give submarine contract to France’s DCNS

THE Japanese Government has called Australia’s decision to choose a French company to build its new submarines “deeply regrettable”, and asked it to explain how it lost the bid.

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THE Japanese Government wants Australia to explain why it decided not to pick a Japanese design for a new fleet of submarines, choosing instead a proposal from France’s DCNS, after the country was an early favourite to win.

“The decision was deeply regrettable,” said Japan Defence Minister Gen Nakatani.

“We will ask Australia to explain why they didn’t pick our design.”

Prime Minister Malcolm Turnbull on Tuesday announced that French company DCNS had won a $50 billion contract to build 12 new submarines for Australia.

Construction will largely take place in Adelaide, at the ASC shipyards and create thousands of jobs.

Australian officials informed Japan of its choice on Monday, explaining that the French design best fitted its unique needs, Nakatani said.

He told reporters he would seek an explanation from Australia to find out why the Japanese submarine was not selected “so we can reflect the findings to future operations”.

Japanese Defense Minister Gen Nakatani. Pic: AP

The contract would have become Japan’s first fully fledged military technology transfer since World War II.

Mitsubishi Heavy Industries, which would have built the Japanese submarines, also reacted in a statement, saying: “It is deeply regrettable that Japan’s capabilities were not sufficiently conveyed, which has led to the result announced today.”

Japan had proposed a longer version of its Soryu class submarine with a diesel-powered propulsion system with advanced stealth capabilities.

A Soryu class submarines off the Japanese coast. Picture: Kikuchi Masayuki

It was a heavy early favourite to win the contract, with sources telling The Advertiserthe deal was all but done two years ago.

Former prime minister Tony Abbott had publicly backed Japan’s bid to build the submarines outside of Australia.

He signed a landmark military technology deal in 2014 with Japanese Prime Minister Shinzo Abe in Canberra in 2014.

The deal was the first such agreement after Japan changed to a “non-pacifist” constitution, which, since World War II, had prevented it from rearming or conducting military operations overseas.

The change allows both nations to jointly develop submarine technologies.

Mr Abbott had said the decision on which submarines to use should be based on “defence requirements, not on the basis of regional policy”.

A Japanese Soryu class submarine. The country had pitched a longer version for the Australian submarines replacement.

Mr Abe’s 2014 visit followed other visits to Tokyo Mr Abbott and high-level talks between senior government ministers from both countries.

On Tuesday Mr Abbott appeared to take partial credit for the submarines announcement, saying the decision came from an “exhaustive and very comprehensive process put in place by the Abbott Government”.

“I am pleased the shameful procrastination of the Labor years is now over,” he said.

“Australia’s special relationship with Japan is more than strong enough to withstand this disappointment and I am confident our strategic partnership will continue to grow through other means.”

Mr Turnbull said Australia’s relationship with Japan was getting stronger despite the country’s contract loss.

Mr Turnbull has notified Japan and the other unsuccessful bidder, German company ThyssenKrupp Marine Systems, that DCNS had won.

When asked if the decision would upset the United States - which was supportive of the Japanese bid - he said the choice was a sovereign decision for Australia.

Australian and Japanese leaders and their governments were thoroughly committed to the special strategic partnership between the two nations, “which gets stronger all the time”.

“We are committed to our strong trilateral strategic engagement between Japan, Australia and the United States,” Mr Turnbull said.

- with AP