Japan and the United States agreed earlier this year on an arrangement for ground-based Patriot Advanced Capability 3 interceptor missiles to be produced under license in Japan as part of the missile defense system, Japanese Defense Agency Director General Yoshinori Ono said Tuesday.

The Japanese and US governments concluded a memorandum of understanding in March this year for the licensed production arrangement, Ono told a press conference.

While the costs of producing the missiles domestically are much larger than purchasing them from the United States, the long-term costs, including upkeep, would be less and Japan would also benefit by building on its missile production technologies, the Japanese defense chief said.

"Licensed production would secure Japan's technological and production bases. The cost will be higher in the short-term, but when we think about the costs of inviting technicians from the United States for maintenance and repair, it would balance out in the long run," Ono said.

According to Kyodo News, Japan's Mitsubishi Heavy Industries Ltd. is expected to conclude a contract with US manufacturer Lockheed Martin Corp. by March 2006 and produce the PAC-3 surface- to-air missiles domestically for deployment starting fiscal 2008.

The PAC-3 missile is a key component of the next-generation missile defense system.

Source: Xinhua