Australia moves close to buying Japanese submarines

Australia's move to spend billions of dollars buying a new fleet of submarines from Japan has moved a step closer during a meeting between Prime Minister Tony Abbott and his Japanese counterpart, Shinzo Abe.

Japanese media reported that Mr Abbott and Mr Abe agreed their countries will continue talks on the transfer of defence equipment and technologies to Australia.

Mr Abbott did not comment publicly after the submarine project meeting on the sidelines of an East Asia Summit of leaders in the Myanmar capital Naypyitaw. But he praised the depth of Australia's relationship with Japan as almost spiritual "in the depth of the links between the two countries".

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