Paul Lewis/SINGAPORE

NEGOTIATIONS between the Japanese and US Governments on production workshare for the Mitsubishi F-2A/B support fighter are in danger of stalling, threatening to delay delivery of the first aircraft.

For production to start on time, a memorandum of understanding (MoU) needs to be agreed and submitted to the US Congress for notification before its summer recess. Any further delay is likely to affect delivery of the first fighter in 1999, say Japanese sources.

Japan has funded production of the first 11 F-2s in fiscal year 1996, nine of which are due to enter Japan Air-Self Defence Force service in 1999. To meet this schedule and remain within the Japanese budget cycle, a manufacturing licence and technical-assistance agreement need to be finalised and contracts awarded by no later than September. Official inter-Governmental talks have been under way since the start of the year, and unofficial discussions since October 1995. The two sides had hoped to conclude an MoU by the middle of April, but the latest round of intense negotiations in Tokyo and Washington, held as late as 24 May, failed to overcome an impasse over the issue of workshare.

The US Defense Security Assistance Agency (DSAA), which is handling the workshare negotiations with Japan, says that it is not aware of any deadline, but it admits that the negotiations are "active, and tedious".

The DSAA adds that it "-fully expects a satisfactory conclusion".

Under an earlier MoU, reached in 1988, US manufacturers, led by prime subcontractor Lockheed Martin and General Electric, enjoyed a 40% share of the development of the F-2, which is based on the Lockheed Martin F-16. US industry expects to receive a similar share of production contracts, worth an estimated $3-4 billion.

According to Japanese sources, there are differences over what constitutes 40% workshare. The two sides disagree on the net and gross values of materials and components to be supplied by US companies. The disparity has been further complicated by the rise in the Japanese yen against the US dollar, which has fallen from ´150 to ´108.

Lockheed Martin supplied the aft fuselage, leading-edge flaps and stores-management system for the four XF-2A/B flight-test aircraft and two static airframes.

The US company also delivered five Mitsubishi-designed co-cured left-hand wing boxes, but it is now competing with the Japanese manufacturer to supply production wing-substructures for the F-2.

Source: Flight International