24 Jul 15. Defence Cooperation: Pakistan to Buy Eight Submarines from China. Pakistan and China on Thursday agreed to a multi-billion dollar deal that would see Beijing provide eight submarines to the Pakistan Navy, in an agreement that analysts are calling the largest-ever defence deal China has agreed to with any country. Despite the magnitude of the deal, government officials did not provide any details, even declining to confirm the size of the transaction. However, the composition of the Chinese delegation with which the agreement was reached suggests that the arrangements have been struck for purchase of eight submarines.
“Pakistan and China have reached an understanding on matters of defence cooperation relating to Pakistan Navy,” announced the finance ministry after a meeting with Chinese authorities. “Financial arrangements to this effect were also concluded.”
According to a briefing that the defence ministry gave to parliament in April this year, Pakistan was negotiating a deal for acquisition of submarines from China. In the same month, the UK-based Financial Times, citing a retired senior official, claimed in a report that the contract could be worth $4bn to $5bn, the largest defence deal ever by China. Sources in the finance ministry said that Pakistan would make down payments to China in four instalments and the delivery of the submarines will be made in the coming years. The financial arrangements were agreed during a meeting between Finance Minister Ishaq Dar and Xu Ziqin, President of the Chinese state-owned China Shipbuilding & Offshore International Company Limited (CSOC). Finance Secretary Waqar Masood and Economic Affairs Secretary Saleem Sethi assisted Dar. Chinese Ambassador Sun Weidong also participated in the negotiations. CSOC is the trade arm of China Shipbuilding Industry Corporation (CSIC) and its main business is the manufacture, repair, lease, and sales of military ships and submarines. Sources in the finance ministry said that the agreement is still subject to final review form higher authorities in Beijing, following which a formal agreement will be signed. The press release issued by the ministry after the event was vague. According to the release, Dar said that the visit by the CSOC delegation to Pakistan would enhance and further strengthen their bilateral economic and defence cooperation. The release quoted Xu thanking Dar for his contribution in concluding the arrangements, saying it was reflective of the deep rooted China-Pakistan friendship. Last month, both the countries had also signed an agreement for construction of six patrol vessels for the Pakistan Maritime Security Agency (PMSA). The agreement had been signed by China Ship Trading Company (CSTC) and the Pakistani defence production ministry. According to the agreement, four ships will be constructed in China while the remaining two will be built at Karachi’s Shipyard under a transfer of technology agreement. (Source: defence-aerospace.com)/The Express Tribune)
23 Jul 15. Japan eyes British help to sink German bid for Australian Submarine. A Japanese government team is in talks with at least two top British firms to help a Japanese consortium land one of the world’s most lucrative defense contracts, sources in Tokyo said, a $50bn project to build submarines for Australia. Germany’s ThyssenKrupp (TKMS), a rival bidder, is wooing anxious members of Prime Minister Tony Abbott’s ruling Liberal Party with the economic and political benefits of its proposal. Two Japanese government officials and a company source in Tokyo said Babcock International Group and BAE Systems had approached the consortium of Mitsubishi Heavy Industries and Kawasaki Heavy Industries with offers of help. Other British defense contractors may also be involved, they said. All three sources spoke on condition of anonymity because of the sensitivity of the subject. Both Babcock and BAE declined to say whether they would work with the consortium, the builders