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Japan, Britain and Italy to establish new organisation to develop jet fighter -sources

By Tim Kelly
       TOKYO, Dec 6 (Reuters) - Japan, Britain and Italy will
sign a treaty in Tokyo next week to establish a joint
organisation and industry group for developing their planned
advanced jet fighter, three sources with direct knowledge of the
plans said.
    An inter-government body will oversee the industry group
venture led by Britain's BAE Systems PLC  BAES.L , Japan's
Mitsubishi Heavy Industries  7011.T  and Italy's Leonardo
 LDOF.MI . That group will distribute work to teams in different
parts of the Global Combat Air Programme (GCAP), such as the
engine and avionics, the sources said. 
    They asked not to be identified because they are not
authorised to speak to the media. 
    Reuters in March reported that Japan and Britain would
dominate GCAP, with about a 40% share of the work each. Rome
dismissed that as "speculative".  
    Japan's defence ministry declined to comment. Officials at
the British and Italian embassies did not immediately respond to
requests for comment. 
    The agreement, which parliaments of each country must
ratify, will come a year after they established their first
major defence industry collaboration by merging the separate
next-generation fighter efforts of London and Tokyo.
    Someone from Japan may lead the project initially, and the
management will rotate among the three countries, two of the
sources said. Japan's leading candidate for that job is Masami
Oka, and adviser to the defence ministry who retired as vice
minister of international affairs in July, they added.
    Oka did not immediately respond to a request for comment.   
 
    The three countries plan to choose Britain as GCAP's
headquarters, Reuters reported in September.
   GCAP may also welcome other nations as junior partners, with
Saudi Arabia among the contenders because it would bring money
and a lucrative market to a project expected to cost tens of
billions of dollars.
    Other companies involved in the project include European
missile maker MBDA, Japanese avionics manufacturer Mitsubishi
Electric Corp  6503.T , and engine makers Rolls-Royce PLC
 RROYC.UL , IHI Corp  7013.T , and Avio Aero.

 (Reporting by Tim Kelly; Additional reporting by Yukiko Toyoda;
Editing by Gerry Doyle)
 ((mailto:tim.kelly@thomsonreuters.com; +813-6441-1311;))

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