U.S. FIRMS BID TO BUILD JAPAN'S NEXT FIGHTER
The United States is stepping up its bid
to win a share of a multi-billion dollar project to build
Japan's next jet fighter, the FSX, as the country's Defence
Agency nears a decision, agency sources said.
    General Dynamics Corp <GD.N> and McDonnell Douglas Corp
<MD.N> of the U.S. Have separately suggested joint development
of the FSX with Japanese firms.
    Officials said the Agency was still studying the project,
but agency sources said the assessment was in the final stages.
    The officials said the agency had received a briefing on a
development proposal from General Dynamics to modify its F-16
jet. The firm's team arrived here on March 30. They declined to
elaborate on the briefing.
    A team from McDonnell is arriving next Monday with a
similar proposal based on its F/A-18 Hornet, the Agency said.
    A Pentagon team of about 10 experts will follow up with a
one-week visit starting on April 11 to discuss the projected
plane with the Agency, the officials said.
      Five major Japanese makers will also present briefings
this month, they said. A spokesman for the group including
Mitsubishi Heavy Industries <MITH.T> and Kawasaki Heavy
Industries <KAWH.T> declined to disclose details.
    The agency has been studying three possibilities:
development of a new fighter-bomber by Japanese makers with or
without foreign participation, modifying F-4EJ Phantoms the
Agency now uses or purchase of a foreign aircraft.
    The contract will be worth an estimated 1,000 billion yen
for 100 FSXs. The agency plans to decide by June and seek
initial research funds in the 1988 budget, press reports said.
 REUTER
