Japan & Australia consider submarine deal that could rattle China

Japan will get the chance to pursue an unprecedented military export deal when its defense and foreign ministers meet their Australian counterparts in Tokyo next month.

Japan is considering selling submarine technology to Australia – perhaps even a fleet of fully engineered, stealthy vessels, according to Japanese officials. Sources on both sides say the discussions so far have encouraged a willingness to speed up talks.

Any agreement would take months to negotiate and remains far from certain, but even a deal for Japan to supply technology would likely run to billions of dollars and represent a major portion of Australia's overall $37 billion submarine program.

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