Page 39 - ADT MARCH 2023 Latest Magazine | GBP

are returned to Ukraine. We’ve seen the effect
of the conflict in Ukraine on energy prices and
indeed on oil. Taiwan are great producers and
exporters of electronic components, meaning
the pain will be felt greatly around the world,
not just in the region. There is a collective
responsibility globally to protect Taiwan’s inde-
pendence. Considering the recent relaxation
of the Three Principles and align that with
your military spending increase, what are
the biggest trends in the Japanese defence
and military market? Especially in light of the
Global Combat Air Program.

Masanori Nishi: Interestingly, my father was an
engineer specialising in jet engines. After the
Second World War, my father told me repeat-
edly that Japanese industrial capability is
very skilled and efficient. The difficult point is
we know how to make, but we are not able to
work out why items are designed in the way they
are. Design is certainly something missing in the
Japan’s defensive capability. I believe Japanese
capability is now catching up, although one
more difficult issue is the understanding that
we have designed our weapon systems really
for our service and not designed for export. The
result of this means that it will be more difficult
for us to have arms transfer chances. Changes
these systems means each and every system is
going to be very expensive. This kind of issue will KISHIDA Fumio, Prime Minister of Japan,
be coming up in the GCAP collaboration with Joseph R. Biden, Jr., President of the
the UK and Italy. However, it will be an important United States of America
occasion for us, not only for own technological
accumulation, but also for understanding the States is an interesting dialogue to monitor and develop. The most
international arms market.
important issue looks at India because they have kept its neutrality.
The Japanese defence industry is happy with They have developed good relations with Russia because they are
the current budget increase, but at the same an important counterpower against China. Moreover, India used
time they are anxious about how long the gov- to be sceptical towards Australia due to the two countries having
ernment will be keeping this size of spending. some difficulties over Indian Ocean and over who is going to con-
Japanese industries capacity is about 70 to trol it. But things are not developing despite the mutual distrust of
80%. But if the Japanese community is going to China – yet China grows as an increasingly more difficult partner
spend more money than the than the capacity to live near. They now threaten many countries with its size in terms
levels, that means industry will need to build of population, economy and military capabilities. For the region
additional production lines and the cost is going in East Asia, India will have a great reason to cooperate with US,
to be reflected to the price. The question is, how Japan, Australia, in order to settle a stable security environment in
long will the government keep spending this the region. As pointed out, India’s relations with Russia creates a lot
much in defence, and do we have enough time of things to discuss this year. How we are going to define quad for
to cover all costs of building new production what manner and for what purposes? It’ll be a serious topic and we
lines? All of these questions are hanging upon need time to find the good answer to all these four countries to be
the Japanese industry, therefore cost issue and satisfied, but I think the relations of these four countries are going
cost sensitivity is going to be a sensitive question to be good and will be improved and it is going to contribute to the
for us in the near future and that is something civilization of the security environment of this region.
that the Japanese Ministry of Defense has to
answer to satisfy the Japanese industry.
Gary Waterfall: Thank you so much for your time today. That has
The Quadrilateral Security Dialogue (Quad) been a real education for me and everyone reading. I wish you every
between Japan, Australia, India and the United success in the coming months.
ASIAN DEFENCE TECHNOLOGY MARCH 2023 | 39