On 5 May 2004, the Defense Security Cooperation Agency notified Congress of a possible Foreign Military Sale to Japan of SM-3 Block 1A Standard Missiles as well as associated equipment and services. The total value, if all options are exercised, could be as high as $725 million.
The Government of Japan has requested a possible sale of nine SM-3 Block 1A Standard missiles with MK 21 Mod 2 canisters, Ballistic Missile Defense (BMD) upgrades to one AEGIS Weapon System, AEGIS BMD Vertical Launch System ORDALTs, containers, spare and repair parts, supply support, U.S. Government and contractor technical assistance and other related elements of logistics support. The estimated cost is $725 million.
Japan is one of the major political and economic powers in East Asia and the Western Pacific and a key ally of the United States in ensuring the peace and stability of that region. It is vital to the U.S. national interest to assist Japan to develop and maintain a strong and ready self-defense capability, which will contribute to an acceptable military balance in the area. This proposed sale is consistent with these U.S. objectives and with the 1960 Treaty of Mutual Cooperation and Security.
Japan will use the Standard missiles to update older or less reliable missiles currently in the Japan Maritime Self Defense Force (JMSDF) fleet. The AEGIS Weapon System and Standard missiles will be used on JMSDF ships. The purchaser, who already has missiles in its inventory, will have no difficulty absorbing these additional missiles.
The proposed sale of this equipment and support will not affect the basic military balance in the region.
The principal contractors will be: Lockheed Martin Naval Electronics and Surveillance Systems of Moorestown, New Jersey; Raytheon Company of Andover, Massachusetts; and Raytheon Company in Tucson, Arizona. There are no known offset agreements proposed in connection with this potential sale.
Implementation of this proposed sale will not require the assignment of any additional U.S. Government or contractor representatives to Japan. There will be no adverse impact on U.S. defense readiness as a result of this proposed sale. This notice of a potential sale is required by law; it does not mean that the sale has been concluded.