U.S., Japan agree to codevelop FSX aircraft - George Bush and Lawrence S. Eagleburger statements before House Foreign Affairs Committee

US Department of State Bulletin, July, 1989

Following are statements by President Bush on April 28, 1989, and Deputy Secretary of State Lawrence S. Eagleburger before the House Foreign Affairs Committee on May 3. PRESIDENT'S STATEMENT, APR. 28,1989

I am pleased to announce that the Governments of the United States and Jitpan have reached understandings that will allow us to proceed with joint development of the FSX fighter aircraft. I am ready to submit the FSX agreement to Congress for its review.

We have been conducting talks with the Japanese to clarify both sides' understandings of this agreement. I am convinced that the codevelopment of this aircraft is in the strategic and commercial interests of the United States. And we weighed this matter from the standpoint of trade, of our industrial growth, and technology transfer, as well as strategic and foreign policy considerations.

This aircraft will improve the basic F-16 design and will contribute to the security of the United States and our major ally, Japan. There will be no cost to the American taxpayer, and, at the same time, the Japanese will improve their ability to carry their share of the defense burden. The United States will have a 40% work share in the initial development stage of this aircraft, and we will have a similar share when the aircraft goes into production.

We did have several initial concerns about the agreement, but I want to assure you that sensitive source codes for the aircraft's computer will be strictly controlled; access will be granted to only those codes that are essential to complete the project.

In conclusion the United States is the world's leader in aircraft manufacturing. I believe this aircraft will improve the defense of the United States and Japan, and this agreement also helps preserve our commitment that U.S. aerospace products of the future will continue to dominate the world markets. DEPUTY SECRETARY

EAGLEBURGER, MAY 3, 1989

Last Friday the President announced his support for the FSX codevelopment agreement recently reached between the United States and Japan. Accordingly the State Department, on May 1, formally notified Congress of the FSX program, in accordance with Section 36(d) of the Arms Export and Control Act. Beyond the requirements of the act, we have transmitted copies of the memorandum of understanding and related documents to the Congress.

The final agreement represents a pact not only between the United States and Japan but between the Administration and the Congress. When the President entered office, he ordered, in response to congressional concerns, an interagency review of the FSX agreement, with particular attention to its economic and technological implications for the United States. That review was undertaken with great care; there was no rush to judgment. The review underscored a need for certain clarifications from the Japanese side-clarifications which we obtained as a consequence of protracted negotiations. Secretary Baker, who, as you know, takes congressional concerns seriously, was instrumental in securing those clarifications.

The Secretary of State was particularly concerned about U.S. jobs. Even before the interagency review was concluded, he stressed to the Japanese in Tokyo the need for assurance that the U.S. share in the production phase would be similar to that for the development phase. We now have that assurance, as well as assurances with regard to U.S. technology flows to Japan and the flow of Japanese technology to the United States. U.S. industry will get 40% of the work in the development phase and approximately a 40% share during production. The consequent benefits to the American worker and American industry have already been described by Secretaries Cheney [of Defense] and Mosbacher [of Commerce].

In considering FSX, we must keep in mind the larger dimensions of our security ties and our overall relationship with Japan. The U.S.-Japan Treaty of Mutual Cooperation and Security, under which Japan furnishes bases in exchange for our commitment to defend Japan, is the foundation for our political and strategic relations throughout the Pacific. Our deployment of forces in Japan is key to our forward defense strategy and our ability to meet global defense commitments.

The FSX will bolster Japan's defense capability with an upgraded version of an already front-line fighter, strengthen our overall alliance, and allow Japan to assume a larger share of the common defense burden. In addition as the first military codevelopment project between the world's two most technologically advanced countries, FSX sets an important precedent for future U. S.-Japan cooperative defense efforts.

We made suggestions to Tokyo on ways to clarify the FSX agreement. The Japanese in turn gave us the assurances we sought. We now have an agreement that clearly serves the national interests of the United States.