Japan Developing Cyber Weapon

TOKYO: Japan has been developing a virus that could track down the source of a cyber attack and neutralise its programme, the daily Yomiuri Shimbun reported Sunday. The weapon is the culmination of a 179 million yen ($2.3 million) three-year project entrusted by the government to technology maker Fujitsu Ltd to develop a virus and equipment to monitor and analyse attacks, the daily said. The United States and China are reported to have put so-called cyber weapons into practical use, Yomiuri said. Japan will have to make legal amendments to use a cyber weapon as it could violate the country's law against the manufacture of a computer virus, the daily said. In November a computer system run by about 200 Japanese local governments was struck. In October, Japan's parliament came under cyber attack, apparently from the same emails linked to a China-based server that have already hit several lawmakers' computers. It was also reported that Japanese computers at embassies and consulates in nine countries were infected with viruses in the summer. Currently, the virus is being tested in a "closed environment" to examine its applicable patterns. (AFP)

Japan Set to Ease Arms Export Ban

TOKYO - Japanese defense minister Yasuo Ichikawa said on Dec. 24 that Tokyo plans to relax a decades-old ban on arms exports to allow Japanese firms to participate in multinational weapons development projects.

The decision, expected to be announced Dec. 27, is likely to stimulate the domestic arms industry while reducing the country's defense spending.

"We will build a new framework," Ichikawa told reporters, stressing the need for lifting the ban as the "cost of highly capable defense equipment has increased".

The self-imposed ban has been in effect since 1967, which critics say has resulted in Japan's military hardware becoming outdated, while rival China's military machine continues to grow and becomes increasingly assertive.

Japan's policy on arms exports is a subject of intense interest to foreign defense contractors, as it could pave the way for greater international cooperation on a host of weapons systems from missile defenses to fighter jets.

The ban has long been seen as an obsolete legacy of the cold war era, and Japanese political leaders have long debated whether and when to lift it.

Supporters of Japan's traditional pacifist positions have warned against such a move, while any attempts in the past by Tokyo to expand its military might have rankled regional powers like China.

F-35 Wins Japan Fighter Competition

TOKYO - Japan on Dec. 20 chose the U.S.-built F-35 Joint Strike Fighter stealth jet for its next-generation mainstay fighter, as North Korea provided a timely reminder of the region's potential for instability.

U.S. AIR FORCE F-35A Joint Strike Fighters are shown in the skies over Eglin Air Force Base, Fla., in July. Japan announced Dec. 20 that it would buy the F-35A variant to replace its F-4 fleet. (Staff Sgt. Joely Santiago / U.S. Air Force)

In a deal estimated to be worth more than $4 billion, Japan went for the trouble-plagued jet to replace its aging fleet of F-4 fighters.

"The government shall acquire 42 units of F-35A after fiscal 2012 in order to replenish and to modernize the current fleet of fighters held by the Air Self-Defense Force," the cabinet said in a statement.

Lockheed Martin's F-35 beat off competition from two other jets: the Boeing F/A-18 Super Hornet and the Eurofighter Typhoon.

The government said Japanese companies would take part in building the new fighters.

The formal decision, which had long been expected, came the day after news of the death of Kim Jong Il sent jitters through the region amid fears a power transition could destabilize North Korea's hard=line regime.

Tokyo was originally expected to announce its pick last week. The selection comes as China's massive military machine continues to grow and Beijing becomes increasingly assertive.

The F-35 is the most expensive weapons program in Pentagon history and has been plagued by cost overruns and technical delays.

Co-developed with British defense giant BAE Systems, the F-35 was the costliest of the three models under consideration, with a price tag estimated at $113 million per aircraft.

Japan initially aimed to acquire the F-22 Raptor stealth fighter to renew its fleet, but U.S. law prohibits exports of the jet and the United States has halted production of the model.

Japan, which places its security alliance with the United States at the cornerstone of its foreign policy, has long depended on U.S. manufacturers for its military hardware.

Japan F-X Announcement Due Within Hours

TOKYO - The Japanese government's sudden decision to delay the announcement of a winner in its multibillion-dollar fighter program is widely regarded as a sign that Lockheed Martin's F-35 has emerged as a late frontrunner despite concerns over cost and local workshare, according to government and industry sources.

F-35 JOINT STRIKE Fighters sit on the tarmac at Eglin Air Force Base, Fla., earlier this year. Japan is scheduled to make a decision Dec. 20 on the winner of its F-X fighter competition, and some say the F-35 is the favorite. (U.S. Air Force)

Japan's National Security Council was slated to announce Dec. 16 whether the F-35, Boeing's F/A-18 Super Hornet or the Eurofighter Typhoon will replace about 40 Mitsubishi F-4EJ Kai Phantoms starting in early 2017 under a contract valued at about $8 billion. The announcement has been moved to Tuesday, Dec. 20.

When the F-X competition began, the aim was to buy 48 air superiority fighters with little development cost and a large share of work for Japanese industry. The F-35 was considered a long shot because development was slipping, unit costs growing, and workshare prospects were more limited.

But Tokyo began to look more favorably on the plane after Japan was denied Lockheed's stealthy F-22 and concerns about China's military escalated.

Early last week, Japan's defense establishment was thrown into a furor following local media reports that the F-35 was the likely winner.

Senior government officials denied that any decision had been made.

But one source said the Joint Strike Fighter had long ago moved to the front of the pack because government officials decided that they wanted stealth, as much high technology as possible and a good relationship with the United States.

"The Japanese always wanted the JSF," said one source. "So they ended up with the result they wanted, and now the question is whether they can sustain it."

Picking the F-35 would invite criticism from the opposition and media of the plane's cost, schedule delays and a recent spate of reports that focused on shortcomings highlighted during development.

Critics may also charge that the competition has been less transparent than claimed, although executives of the three main contenders have said the MoD has been painstakingly careful to make the contest as fair and open as possible.

The stakes in the F-X competition go beyond replacing the F-4s; the winner is likely also to get the bigger prize of replacing more than 100 F-15Js within the next 10 years.

INTERNAL SPLIT

Shinichi Kiyotani, a military analyst and journalist, said the sudden delay in the announcement points to divisions within the MoD and the ruling Democratic Party of Japan (DPJ) cabinet.

"There are internal discussions within the MoD; some bureaus are sold on it [the F-35], others aren't," Kiyotani said. "There is division at the top of the MoD, and there are still internal discussions within the DPJ Cabinet. There are so many problems with the F-35, it's seen as a huge risk."

Among other concerns, there's the question of whether the F-35 will offer enough local workshare to support Japan's ailing aerospace sector. The country's only active fighter-jet assembly line is slated to shut down after rolling out just six more Mitsubishi F-2s, a derivative of the F-16.

That consideration was seen as giving the edge to Eurofighter, which vowed to give Japanese industry as much as 95 percent of the work, or to Boeing, which said that more than 80 percent would be available. Lockheed offered less, but argued that access to next-generation production capabilities and coveted stealth technology outweighed financial value.

PERCEIVED RISKS

Kiyotani also noted concerns about the recent news of a slowdown in production of the F-35 caused by some lingering technical problems and the potential that U.S. politics and budget cuts could shrink the Pentagon's own purchase.

"The F-35 is already seen as very expensive. If the number of units is only a few a year, then that will push up costs," he said. "Nobody believes the Lockheed Martin story of an eventual $65 million or so a plane."

Alessio Patalano, a Japan military expert at King's College in London, agreed on the risks involved.

"Of these three options, the F-35 is on paper the one with superior performance characteristics, but it is an operationally untested aircraft, widely reported to run into constant escalating costs and with serious issues in relation to delivery timetables," Patalano said. "More importantly, there is no way to know at the moment if its ... superior stealth capabilities will make a difference in real-time missions: By the time it will enter into service, technology will have provided new ways to reduce the impact of this feature. Second, there is little guarantee as to whether once it is fully armed, this configuration will not have an impact on its stealth capabilities."

A senior Japanese industry source speaking on condition of anonymity also said industry doesn't yet fully buy into the F-35's value proposition.

"We have not yet got concrete information of how we will be involved," the executive said. "It is said that Japanese industry will assemble substantial portions of the F-35, according to the media, but we aren't sure exactly what systems and components Lockheed Martin will be allowed to permit industry to produce in the future.

"I am afraid that delays will happen that will increase costs next year or a few years later. Some feel that it is better that we avoid such a situation. Others want to us to pursue the newest fighter like some kind of super car," he said. "If Japan doesn't get the final version of the F-35 until a decade later, we may really need a different fighter. If there are delays, then the government may well have to put up with purchasing lower numbers."

Jun Okumura, a counselor for Eurasia Group, said the Japanese government will likely opt for the F-35 based on political reasons.

"The administration [of Prime Minister Yoshihiko Noda] places great value on the bilateral alliance, particularly at a time when a rising China is making waves in Japan's near abroad and beyond - including hints of its own Gen-5 program - and the U.S. has decided to reupholster its engagement in the Asia-Pacific," he said. "All that the government sources are willing to say now is that nothing has been decided yet. Assuming that it is indeed the F-35, though, it means that MoD could have, but did not, go for an interim, Gen-4+ solution while waiting for the questions around the F-35, including timing, to clear up."

North Korea Agrees to Suspend Uranium Enrichment: Reports

SEOUL - North Korea has agreed to suspend its enriched-uranium nuclear weapons program, a key United States demand for the resumption of disarmament talks, news reports said Dec. 17.

Yonhap news agency and the Chosun Ilbo daily quoted an unidentified diplomatic source saying that Washington had also agreed to provide the North with up to 240,000 tons of food aid.

Pyongyang pledged "to implement initial measures of denuclearization that include a suspension of its uranium enrichment program," Yonhap said.

The North apparently agreed to put stricter and clearer monitoring systems in place to ensure that the food aid reached those most in need, according to the source, Yonhap said.

The agreements came when Robert King, U.S. special envoy for North Korean human rights, met with Ri Gun, head of North American affairs at North Korea's foreign ministry, on Dec. 15 and Dec. 16 in Beijing, the source said.

The reports could not be independently confirmed.

Suspending the uranium enrichment program - first disclosed by the North one year ago - is a key demand of Washington's before six-party negotiation scan resume.

The North quit the six-party forum - which also includes China, Russia, Japan and South Korea - in April 2009, one month before its second nuclear test.

Pyongyang has long said it wanted the six-nation talks to re-start, but without preconditions. But the United States says the North must first show "seriousness of purpose" by shutting down the enrichment program.

According to both Yonhap and Chosun Ilbo, the two countries were likely to hold a third round of talks this coming week in Beijing to discuss resuming the six-party talks.

Glyn Davies, the U.S. special representative on North Korea, will likely meet with North Korean First Vice Foreign Minister Kim Kye-Gwan in Beijing around Dec. 22, the source said.

North Korea was promised 500,000 tons of food aid from the United States when it dismantled part of its nuclear facilities in Yongbyon in 2008. It had received 170,000 tons by the time the aid was suspended in 2009 as tensions worsened over the North's nuclear programs.

Fighter Jet Projects Surge, But Not Where You'd Expect

The number of countries attempting to develop a new fighter aircraft has surged recently, part of a cycle that has ebbed and flowed since the dawn of the jet age.

South Korea and Turkey are the latest nations to start clean-sheet programs, while Japan is working on its ATD-X concept demonstrator, India is working on an improved version of its Light Combat Aircraft and Indonesia has signed on to the Korean effort.

Most are drawn by the prospects of developing a homegrown industrial base, boosting employment and filling military needs, analysts said.

"If you want to do all three badly, then you build a national fighter," said Richard Aboulafia, an analyst at the Teal Group, Fairfax, Va. "It comes in waves, and a lot of it driven by national aspirations and a lot of it is driven by perception of threat, and a lot of it is driven by the ruling party in the given country."

In the 1980s, domestic politics fostered a spate of indigenous fighter projects, which were generally killed off in the next decade or two by economic realities, Aboulafia said. With free-market capitalism's cachet diminished in many parts of the world, such national programs have made a comeback.

"Even autarchy has come back into vogue," Aboulafia said. "I think this might be a reflected dislike of market reality that has come with the economic meltdown of the past three years."

There is also a perception that an indigenous effort will be cheaper than an imported design, said Byron Callan, an analyst at Capital Alpha Partners in Washington. Many countries cannot afford new fighters such as the F-35, Eurofighter Typhoon, Dassault Rafale or even the new Russian PAK-FA, Callan said.

Even the Swedish Gripen, which recently won a Swiss order largely because it was cheaper than the Rafale and Typhoon, is very expensive, he said.

Something has to fill the market void, Callan said.

But Aboulafia said these nations are grossly underestimating the cost of developing a new fighter. For example, Seoul estimates that its KF-X stealth fighter effort will cost about $8 billion - "which is enough to maybe design a decent set of wings," he said.

Dan Gouré, an analyst at the Lexington Institute, Arlington, Va., concurred.

"It's horribly expensive," he said.

The track record for national fighter programs is not a good one. Japan, which has a highly developed economy and advanced technology, tried and failed to develop good cost-effective fighter, even with U.S. help, Aboulafia said.

Japan's experience with the F-2, which was based on the F-16, was a disaster that largely soured the country on developing an indigenous fighter. Aboulafia noted Tokyo's ongoing ATD-X stealth fighter development effort but said it would likely produce only a concept demonstrator, not a full production effort.

"There is nothing about history that would make you want to do this," Aboulafia said. "And looking at history, they have a lot to answer for."

Nor do most countries attempting to build an indigenous fighter have the technical wherewithal to build such an aircraft. Neither Turkey nor South Korea has the technical ability to build such fighters without external help.

"They're going to find there is an enormous gap between the licensed production of F-16s and designing, integrating and producing an entirely new product," Aboulafia said.

Even South Korea's recent experience in co-developing the T-50 jet trainer does little to alleviate the problem, he said.

Gouré was blunt about their chances for success: "There is no way in hell."

Only a handful of nations can design and build fighters without external help, he said. France, Britain, the U.S. and Russia are the only countries ever to successfully develop their own fighters, he said.

"Even the Chinese stuff, it's really all derivative of Russian hardware," he said.

Only about 60 percent of the Saab Gripen is built in Sweden, with the rest, including the engines, mostly U.S. in origin, Gouré said.

Because indigenous programs almost invariably offer an inferior product, there is tension between those who would develop such aircraft and those who will be expected to fly them in combat.

"Are you simply expecting to do as good a job as a traditional producer, or are you simply expecting your air force to take casualties?" Aboulafia said. "The best-case scenario is the reinvention of a fourth-generation jet with higher cost, which is exactly what happened with Japan's F-2."

India's Light Combat Aircraft is a good example. Leery of adopting the homegrown fighter because of its less-than-impressive performance, the Air Force has shown a clear preference for the winner of the country's Medium Multi-Role Combat Aircraft - either Rafale or the Typhoon - and the Indo-Russian T-50 PAK-FA stealth fighter.

Callan said, ultimately, countries that need only interceptors for home defense don't need particularly advanced aircraft. A light fighter similar to an F-16 or F/A-18 might suffice.

"There is 'good enough' for a lot of these markets," he said.

Chinese Carrier Photographed During Sea Trials

WASHINGTON - A satellite image of China's first aircraft carrier has been captured while the vessel was undergoing sea trials in the Yellow Sea, a U.S. company said on its website Dec. 15.

THIS SATELLITE IMAGE from the DigitalGlobe Analysis Center shows the Chinese aircraft carrier Varyag during its second sea trial in the Yellow Sea, approximately 100 kilometers south-southeast of the port of Dalian. (AFP Photo / DigitalGlobe)

The 300-meter (990-foot) ship, a refitted former Soviet carrier, was photographed on December 8, said Colorado-based DigitalGlobe Inc., and an analyst from the company spotted it when reviewing images five days later.

The ship underwent five days of trials in August that sparked international concern about China's widening naval reach amid growing regional tensions over maritime disputes and a U.S. campaign to assert itself as a Pacific power.The Beijing government said earlier this month that the carrier had started its second sea trial after undergoing refurbishment and testing.

The South China Sea, which is believed to be rich in oil and gas and is claimed by several countries, has dominated such disputes involving China, leading to run-ins with rival claimants including Vietnam and the Philippines.

Chinese President Hu Jintao on December 7 urged the navy to "accelerate its transformation and modernization" and "make extended preparations for military combat" to safeguard national security.

Beijing only confirmed this year that it was revamping the Soviet ship, the Varyag, and has repeatedly insisted that the carrier poses no threat to its neighbors and will be used mainly for training and research purposes.

But the August sea trials were met with concern from regional powers including Japan and the United States, which called on Beijing to explain why it needs an aircraft carrier.

China only provided the first official acknowledgment of the carrier in June when Chen Bingde, the nation's top military official, gave an interview to a Hong Kong newspaper.

The Chinese have yet to announce a name for the ship, which is commonly referred to by its old Soviet name. Although some media have used the name Shi Lang - a 17th century admiral who led a Chinese conquest of Taiwan - Chinese media often omit a name reference.

Coincidentally, the Varyag's sistership, the Russian carrier Admiral Kuznetsov, is also at sea - the first time both ships have been under way on their own power at the same time.

The Kuznetsov left its Northern Fleet base in Murmansk earlier this month for a three-month cruise to the eastern Mediterranean, where it may call at the Syrian port of Tartus. The carrier was reported off Scotland earlier this week. ■

Staff writer Christopher P. Cavas contributed to this report.

Bids Submitted for Aegis Follow-On System

Lockheed Martin, Raytheon and Boeing have submitted proposals to take over support and development of the Aegis combat system, the companies said Dec. 14.

The Combat System Engineering Agent (CSEA) competition also is intended to provide a follow-on system to Aegis, the U.S. Navy's most capable weapon system and the foundation for its fleet air defense, surface warfare and ballistic missile defense (BMD) missions.

Lockheed has held the Aegis development and support contract since 1995, when it acquired Martin Marietta. The system was first developed by RCA starting in the late 1960s. General Electric then bought the company, which in turn was sold to Martin Marietta and subsequently merged with Lockheed.

Aegis, perhaps the world's most effective naval combat system, has been worth many billions of dollars to Lockheed over the years. All 27 Ticonderoga-class cruisers and at least 70 DDG 51 Arleigh Burke-class destroyers have been built with the system. Spain, Norway, Japan and the Republic of Korea operate Aegis warships, and Australia is building a new class of Aegis destroyers.

A combination of radars, computers and weapons, Aegis was first developed to counter massed attacks by Soviet anti-ship missiles, and has evolved into an effective surface warfare system. Although not designed to target ballistic missiles, the system has been modified with more powerful processors as the basis for the Navy's BMD systems, and is the foundation for the Phased Adaptive Approach effort for the land-based missile defense of Europe.

According to the Missile Defense Agency, 24 Aegis ships - five cruisers and 19 destroyers - have BMD capability. That number is to increase to 32 ships by the end of 2013 as more units are upgraded.

The CSEA effort is intended to provide for the design, development and integration of Aegis weapon system and Aegis combat system future capabilities for existing cruisers and destroyers, and potentially create a new system for DDG 51 Flight III ships beginning in 2016.

Dependent on development, Flight III ships may be fitted with a new combat system or continue with Aegis.

The Navy is expected to award the CSEA contract in the fall of 2012.

A separate competition is underway to develop a new phased-array radar for Aegis. The Air and Missile Defense Radar (AMDR) is to provide new radars to replace existing SPY-1 radars beginning with the U.S. Navy's 2016 Flight III destroyers.

Lockheed, Raytheon and Northrop are working to develop the AMDR, which will be a dual-band system. All three companies are working under Navy contracts to develop an S-band (AMDR-S) radar, with development contracts yet to be issued for the AMDR-X X-band system. The AMDR systems will also include a radar suite controller to integrate the radars.

No Clear Signal Yet From Japan on F-35 Selection

TAIPEI, WASHINGTON and TOKYO - The F-35 could see its wings emblazoned with the red sun roundel, if Japanese media reports are correct.

The Lockheed Martin Joint Strike Fighter (JSF) has been in competition with the Boeing F/A-18 Super Hornet and Eurofighter Typhoon for the Japanese F-X program for several years. The F-X will replace Mitsubishi F-4EJ Kai Phantoms, due to begin retirement in 2015.

Japan plans to purchase between 40 and 50 fighters for roughly $10 billion. Tokyo is also considering replacing F-15Js within the next 10 years, increasing the number of F-X fighters to 150.

However, both the Japanese Ministry of Defense (MoD) and the U.S. Pentagon's Joint Program Office are denying any final decision has been made. Boeing discounted the reports, holding out hope the Japanese government will continue to work with the company, as it has with the F-15J.

"We've seen the speculation on the JSF winning but won't comment on that aspect," said Lorenzo Cortes, international communications, Boeing Defense, Space & Security. "The Japanese government could best respond to what's going on. We are expecting a formal announcement as early as this week, but ultimately, it's Japan's discretion as to when they want to do that."

The MoD has repeatedly said they "were unable to confirm neither decision in favor of the F-35 nor the public release of the announcement for Dec. 16," an MoD spokesman said. "Nothing has been decided on the selection, and we can't confirm when the decision will be announced."

Richard Aboulafia, an analyst with the Teal Group, Fairfax, Va., said that if true, Japan's selection of the F-35 is a "very strong endorsement from a respected service." The F-35 has been under attack in the U.S. Congress and media due to a variety of production and program problems.

"Despite all the doubts, they still see the F-35s capabilities and technology as the future," he said. "It's the first new customer outside the original partner nations."

Despite the Japanese endorsement for the F-35, there will be challenges finding a role for Japan's indigenous aviation industry, which is facing layoffs and reduced production with the end of the Mitsubishi F-2 fighter, the country's only active fighter line, scheduled to close soon.

"No licensed production will be tantamount to disaster," a Japanese defense industry source said. "We have excellent engineers, and a generation of skills will be lost."

A U.S. defense industry source in Tokyo said the F-35 program is a "complex multinational program that will take some negotiation to carve out a Japanese aviation industry role."

Part of the problem is the limited number of F-X fighters, 40 to 50, which "means investment would be quite high, so question is, does this position the F-35 to fulfill the F-XX/F-15J replacement program?"

Philippines' New Warship Sent to Disputed Waters

MANILA, Philippines - The Philippines launched its newest warship on Dec. 14, a former U.S. Coast Guard cutter that President Benigno Aquino said would be deployed to waters at the heart of a territorial dispute with China.

Aquino said the 378-foot (115-meter) Gregorio del Pilar would lead patrols in the parts of the South China Sea that the Philippines claims exclusively as its own and where exploration for potentially lucrative gas fields is underway.

"The Gregorio del Pilar, named after the newest general of the Philippine revolution, will take the lead in patrols for our sovereignty, and in ensuring that our waters are crime-free," Aquino said.

Aquino was speaking at Navy headquarters in Manila during a commissioning ceremony for the vessel, which replaces a World War II-era destroyer as the country's top warship.

Gregorio del Pilar was acquired from the United States earlier this year amid rising tensions between the Philippines and China in the South China Sea.

Tensions escalated after the Philippines accused the Chinese People's Liberation Army Navy of firing warning volleys at Filipino fishermen in the South China Sea, harassing an oil exploration vessel and putting up markers on Philippine islets.

Those areas are much closer to the Philippine landmass than Chinese, but China insists it has sovereign rights to virtually all of the South China Sea, even waters up to the coasts of Southeast Asian countries.

Other parts of the sea, which are reputedly rich in mineral resources and straddle vital sea lanes, also are claimed by Brunei, Malaysia, Taiwan and Vietnam.

The competing claims have for decades made the sea one of Asia's most dangerous potential military flashpoints.

Meanwhile in Beijing, state media reported that China has sent its largest patrol ship, the 3,000-ton Haijian 50, to the East China Sea to guard the country's territorial rights.

China has repeatedly locked horns with neighbors Japan and Taiwan over a group of uninhabited islands - called Senkaku in Japan and Diaoyu in Chinese - in the East China Sea that Beijing claims are in its territorial waters.

Japan and Taiwan also claim sovereignty over the area, which is similarly believed to be rich in oil and gas.

Japan Picks F-35 as Mainstay Fighter: Reports

TOKYO - Japan has chosen the U.S.-made F-35 stealth jet as its next-generation mainstay fighter in a multibillion-dollar deal, reports said Dec. 13.

The Defense Ministry picked the jet made by Lockheed Martin to replace its aging fleet of F-4 jets over two rivals, the Boeing-made F/A-18 Super Hornet and the Eurofighter Typhoon, the Yomiuri Shimbun said.

Japan's biggest daily said the Defense Ministry had "agreed in principle" to select the F-35, with a formal announcement expected Dec. 16 at the Security Council of Japan, chaired by Prime Minister Yoshihiko Noda.

Kyodo News cited unnamed government sources as saying the ministry had decided to buy 40 F-35 fighters, while the Nikkei business daily said only that the jet remained a "prime candidate."

Earlier reports said Japan could buy as many as 50 new jets, equipped with stealth technology, with a price tag of more than $6 billion.

A Defense Ministry spokesman on Dec. 13 declined to confirm the reports, saying: "We are still trying to do our best to make a final decision by the end of this year."

And Chief Cabinet Secretary Osamu Fujimura denied the reports that a final decision had been made, Dow Jones Newswires said.

The F-35, the most expensive weapons program in Pentagon history, has been plagued by cost overruns and technical delays.

The jet, co-developed with British defense giant BAE Systems, is the most expensive among the three candidates, with a price tag estimated at $113 million per aircraft.

Japan initially aimed to acquire the F-22 stealth fighter to renew its fleet, but U.S. law prohibits exports of the jet because the U.S. has said it would halt production of the model.