U.S. Fails to Resolve Issue of Aiding Japan Jet Project

High-level talks among U.S. government agencies have so far failed to resolve trade questions over proposed U.S.-Japanese cooperation on Japan’s new FSX fighter, Administration officials said today.

The Bush Administration is examining a decision made last year by the outgoing Reagan Administration, which came after years of wrangling, to let General Dynamics Corp. help Japan’s Mitsubishi Heavy Industries build a new jet based on the General Dynamics’ F-16.

But opponents of the proposed $8-billion deal, including members of Congress, have cautioned that the cooperation would give Japanese aerospace industry a major boost in its competition with U.S. defense firms.

Officials said a meeting held Friday on the FSX included representatives from the White House, National Security Council, U.S. Trade Representative’s office and the State, Defense, Commerce, Labor, Energy and Treasury departments.

Published reports have said questions about the deal are being raised by the Commerce Department and the trade representative’s office. The Bush Administration has not yet sent notification to Congress that it intends to go through with the technology transfer deal.