U.S. and Japan Reach Tentative FSX Accord

The Bush Administration and the Japanese government have agreed in principle on a compromise in their dispute over the proposed joint development of an advanced FSX fighter plane and hope to have details ironed out early next week, U.S. officials said Friday.

The terms, which strategists say have been approved generally by President Bush and Japanese Prime Minister Noboru Takeshita, include agreement for U.S. firms to garner “about 40%” of the production work involved in the plane, rather than merely sharing in the development phase.

The accord also calls for the United States to have access, free of charge, to any new technology that Japan develops under the project as a result of U.S. technology. Washington would also be able to buy any new technology that Japan develops from scratch.

The deal on the fighter jet, which is to be patterned after the American F-16, is unusual because it not only reflects traditional U.S. concerns about sharing of sensitive American military technology, but also this country’s interest in making certain that Americans have access to any new technology developed by its partner.

Even though Japan has not developed any major military aircraft on its own since World War II, American officials recognize that Japanese technological capability is so sophisticated that it could easily develop breakthroughs.

U.S. officials said that the White House hopes to work out enough details this weekend to make possible a formal exchange of letters confirming the terms early next week, in time to present the deal to Congress before House hearings scheduled for Wednesday.

If Congress agrees with the changes, it could mean an end to internal wrangling that has surrounded the FSX issue and head off any souring of U.S.-Japanese relations over the agreement, an eventuality some analysts feared could spread to political issues as well.

Modest Victory

U.S. officials described the compromise as a modest but important victory for the Administration in its effort to tighten the guarantees in the original accord.

The Ronald Reagan Administration had closed the FSX deal with Japan last November after 18 months of negotiations between the Defense and State departments and their counterpart ministries in Japan. Both sides declared the resulting agreement fair.

However, almost immediately after the details were disclosed, Bush Administration economic officials raised objections, arguing that it would “give away” U.S. technology and hand Japan the wherewithal to start a civilian aircraft industry.

Congress also entered the picture, with lawmakers threatening to block the accord unless the Administration demanded that Japan guarantee the United States a share of the production work on the plane and increased safeguards for American technology.

Japan has been slow to respond to the U.S. demands, partly because Takeshita and other high officials have been tied up coping with the Recruit financial scandal in Japan.