Japan On Steep Learning Curve to Sell Submarines

The Japanese submarine delegation for the briefing in Adelaide, August 26, 2015. Admiral (ret.) Takashi Saito is in the center.

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COMMENT

With Germany and France having been engaged in selling weapons to Australia since the 1950s  Japan is feeling the competition. Arms sellers have to sell to many interest groups. The arms buying public are concerned about jobs and taxpayer's money. Arms buying governments, like the Abbott Government, also need to play a positive role in selling. The Abbott Government's reputation has been changing every 3 months or so - some times for the worse.

Below are some snippets reflecting what the Japanese submarine delegation experienced in Adelaide today.

ARTICLES

By Matt Siegel of Reuters, August 26, 2015 reported http://www.reuters.com/article/2015/08/26/australia-japan-defence-idUSL4N11120320150826

UPDATE 1-Japanese officials struggle to woo Australia over 

submarine contract

Aug 26 (Reuters) - Japan's effort to charm Australian politicians and the public over its bid for a A$50 billion ($35.60 billion) submarine project appeared to stumble on Wednesday, with officials from Tokyo resisting pressure to commit to building the vessels in Australia.

Japanese defence officials and executives from Mitsubishi Heavy Industries and Kawasaki Heavy Industries made their first major pitch to build 12 stealth submarines for Australia's navy during public briefings for defence contractors and the media in Adelaide, a ship-building hub.

Once seen as the frontrunner to win the contract, the Japanese bid has since come under scrutiny because of Tokyo's unwillingness to commit to building any submarines in Australia, where manufacturing jobs are a hot-button political issue.

Rivals ThyssenKrupp Marine Systems (TKMS) of Germany and France's state-controlled naval contractor DCNS have both said they would build entirely in Australia, targeting members of the Australian government with the economic and political benefits of their proposals.

Both European firms have also courted the Australian defence industry and media in key cities.

Two sources present at separate meetings between the Japanese delegation and Australian officials said the Japanese did not seem to have much understanding of the political sensitivities and appeared to have lost ground to the rival bidders.

They said the delegation gave few details about the Japanese proposal beyond reassurances they would adhere strictly to the rules of the process.

"It seems like the (Australian) federal government just told them that they had to come down here and talk to us," one source told Reuters under the condition of anonymity because he was not authorised to speak to the media.

"I think they're really struggling to connect to the public. It's just not in their DNA to speak publicly about defence issues."

A defence industry source in Tokyo said the German bid was shaping up as the one to beat…..WHOLE ARTICLE

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Natalie Whiting for Australia’s ABC, August 26, 2015 reported http://www.abc.net.au/news/2015-08-26/submarines-bid-japanese-delegation-adelaide-visit/6724760

Submarines contract: Japanese delegation in Adelaide for public relations offensive

A Japanese defence adviser has conceded the country needs to improve its public relations in order to win the contract to build Australia's next fleet of submarines.

…Japanese defence adviser and former submarines commander Yoji Koda said Japan initially failed to understand the public relations game its competitors were playing.

French and German companies bidding for Australia's $20 billion submarine contract have been courting both the Federal Government and public opinion via the media.

Japan had been avoiding that second battleground, but the current delegation will hold a news conference today in Adelaide, ahead of meeting industry officials and a visit to the defence construction facilities in Adelaide's north-west.

Retired rear admiral Yoji Koda now works as an adviser to one of Japan's shipbuilding companies and for the national security secretary.

It is the first time the pacifist country has competed in a defence bid such as this and he said being "rookies" had posed some problems.

"[The] Japanese team is gradually solving those problems, but still there are some areas [where] Japan is not so doing well," he said.

Public relations the new submarine battlefield for the Japanese

The Japanese have been criticised for being secretive, an issue which has been amplified by the PR offensive their German and French competitors launched.

Mr Koda said the Japanese team was now learning that approach.

"I strongly believe [with] the engineering capability or technology ... of building the larger submarine, I think Japan is still in the lead," he said.

"But at the same time there are several other things we need to take into consideration. One is the public relations so, yes, for the first time the Japanese team shows up at Adelaide and speaks to the public and also have a conference with [the] Australian team and I hope that will be convincing to the Australian people." WHOLE ARTCLE

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In another ABC article of August 26, 2015, Leah MacLennan reported http://www.abc.net.au/news/2015-08-26/submarine-delegation-japanese-visits-adelaide/6726632:

Japanese submarine bid delegation visits Adelaide, denying any secret deal to win contract

…Masaki Ishikawa from the Japanese defence ministry said speculation of a secret deal had not come from Japan.

"We are not the one to be blamed for ... others speculating there may be a secret deal," he said.

"[We are] a little bit confused and perplexed why such speculation is still amongst the people's voices."

…At a news conference held during a visit to Adelaide, the Japanese delegation sought to end speculation a secret deal had been made even before the Federal Government mounted what it called a "competitive evaluation process".

The Japanese said they would ensure the Government had full details of their bid by the end of November.

Asked if construction in Adelaide was his preferred option, Admiral Takashi Saito said three options all were under serious evaluation.

"We are requested from the Australian Federal Government to come up with all three build options - Japanese, hybrid and Australian build options," he told reporters.

"Team Japan are considering and investigating all the possibilities to come up with all three build options and in that effort we are also seriously considering the Australian build option."

…South Australia's Defence Industries Minister Martin Hamilton-Smith…met Admiral Saito and said he made that position clear.

"He was very respectful, very receptive and the Japanese contingent under Admiral Saito made it very clear that they were considering all three options, including an Australian build and I commend them for it, as I did the Germans and the French," he said.

Chris Burns from industry body the Defence Teaming Centre said the push for a 100 per cent local build was "well received" when discussed with the Japanese delegation.

"They fully understand that we have to be part of the process from the outset and why we want to build our own submarines," he said.

"It's not just about jobs, it's about ensuring our security and the security of our country."

The contract for the future submarines is expected to be awarded by the Federal Government next year."

Pete