Tokyo to Cover Pentagon Costs for Faster Arms Deliveries (excerpt)
(Source: Nikkei Asian Review; published July 05, 2018)
By Masaya Kato
TOKYO --- Japan has agreed to shoulder some American administrative costs for defense equipment orders in return for quicker deliveries and more transparency over prices as U.S. President Donald Trump pressures Tokyo to buy more arms.

The U.S. Defense Security Cooperation Agency, the Pentagon branch responsible for the country's Foreign Military Sales program, had previously declined Japanese requests for detailed price breakdowns and shorter delivery times, citing staff shortages.

By the end of June, both sides had reached a compromise wherein Japan would pay for extra workers the agency had to hire, among other administrative costs. Japan's government is also looking to lower procurement costs by signing a long-term contract with Washington.

Some of Japan's orders have taken several years to fill, with some delays lasting years. In negotiations, American officials have reportedly said they would work to halve delivery times.

How and how much Japan will pay remains to be settled. Tokyo assumes the cost for hiring several additional workers will run to several hundred thousand dollars. The U.S. already charges 3.2% of defense contract prices for administrative and other costs.

Click here for the full story, on the Nikkei website.


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