Japan is proposing jointly building Australia's new submarines, instead of exporting a new fleet, a report said Monday, after concerns in Canberra over the effect on the domestic ship-building industry.
Under the proposal, Japan's defence ministry is to cooperate with Australia in developing special steel and other materials for its new submarines, while Tokyo will be in charge of assembling them, the Mainichi Shimbun said.
The Australian side has taken "a positive stance" on the proposal, the daily said, adding that the two countries may strike a deal by the end of 2015.
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