Submarines Down Under Australia rejects a Japanese bid after Chinese pressure.
http://www.wsj.com/articles/submarines-down-under-1461712003
Prime Minister Malcolm Turnbull announced Tuesday that the biggest military contract in Australia’s history, a $40 billion tender to build 12 submarines, will go to a French naval contractor. That’s a defeat for Japan’s bid, and with it a lost opportunity to deepen cooperation among the leading Pacific democracies facing China’s rising military.
Mr. Turnbull said he based his decision on an “unequivocal” recommendation from defense officials “that the French offer represented the capabilities best able to meet Australia’s unique needs,” including the imperative to operate across long distances. France’s state-owned DCNS will build a 4,500-ton diesel-electric version of its existing 5,000-ton Barracuda nuclear-powered sub, including a quiet pump-jet propulsion system rather than a traditional propeller.
As important, especially with national elections looming in July, is what’s in it for domestic labor. Mr. Turnbull promises “Australian workers building Australian submarines with Australian steel,” especially in swing districts facing auto-factory closures amid state subsidy cuts. Unions have been on edge since then-Defense Minister David Johnston said in 2014 he couldn’t trust state-owned shipbuilder ASC “to build a canoe.” Hence the need for foreign bids.
But all bidders agreed to build in Australia, so that doesn’t account for France’s win over Japan, which offered a version of its sophisticated 4,000-ton Soryu sub built by Mitsubishi Heavy Industries. Australian sources say Japan’s problems ranged from insufficient crew space in its design to inexperience among executives and officials in exporting complex military technology, as Tokyo banned such exports until two years ago.
The most significant influence may have been China, Australia’s largest trading partner, which openly campaigned against Japan’s bid. Chinese Foreign Minister Wang Yi warned his Australian counterpart in February to remember World War II and “consider the feelings of Asian countries,” arguing that Japan’s military-export ambitions represent a failure to “uphold its pacifist constitution.” CONTINUE AT SITE
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