Gordon Werner

Friday December 14, 1:50 am Eastern Time

Japan to buy four refuelling planes from Boeing
By Teruaki Ueno

TOKYO, Dec 14 (Reuters) - In a move likely to upset some of its neighbours, Japan said on Friday it would buy four B767 mid-air refuelling tankers from Boeing Co over the next five years as part of an ambitious revamp of its military.

The purchase, which would have the effect of vastly extending the range of attack aircraft, comes at a time when Japan is trying to boost its military role in the U.S.-led "war on terrorism" as well as U.N.-sponsored peacekeeping operations.

The National Security Council, Japan's highest defence body, endorsed a proposal made by Japanese military experts that Tokyo buy airborne refuelling aircraft from Boeing rather than European plane maker Airbus SAS, Defence Agency chief Gen Nakatani told reporters.

Japan's air force, known as the Air Self-Defence Force, had been considering which aircraft -- either Boeing's B767 or the Airbus A310 -- it should buy for use as refuelling tankers.

Japanese trading house Itochu Corp acted as the agent for Boeing while Marubeni Corp represented Airbus.

The government plans to acquire four B767s for 27.5 billion yen ($218.2 million) each in the five years to March 2006. The Defence Agency wants to budget for the purchase of one of the tankers in the next fiscal year beginning April.

The ASDF has been using AWACS (airborne warning and control system) surveillance aircraft based on B767s since 1996.

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The news would be welcomed by Boeing, which is expected to book few sales over the coming year as the global aviation industry struggles to shed excess capacity.

The Japanese order would also launch development of the tanker version of the B767, in which Boeing is trying to interest the U.S. military.

Analysts said the purchase could upset some of Japan's neighbours since the sophisticated planes can substantially increase the range of attack aircraft such as F-15 fighters and F-2 support fighters.

Any perceived move by Japan to build up its military, known as the Self-Defence Forces (SDF), courts controversy in Asia because of Japan's wartime imperialism and at home because of the country's pacifist constitution.

Defence chief Nakatani said the tankers would be used purely for self-defence. "The introduction of the mid-air refuelling tankers would not make it possible for Japan to pose any threat to or invade other countries," he said.

Nakatani said 25 countries including China, Indonesia and Malaysia had airborne refuelling tankers.

Tokyo has taken steps to boost its military's preparedness since 1998 when it was caught off-guard by North Korea's surprise launch of a ballistic missile over Japan.

Pyongyang's missile programme prompted Tokyo and Washington to strengthen their military alliance.

The pact raised concerns in China that it was designed to protect Taiwan in the event of Chinese military action against the island, which Beijing regards as a renegade Chinese province.

Defence spending in Japan, which critics say is still ill-prepared for a real conflict, currently ranks among the world's highest, though the Defence Agency notes that more than half the money is spent on wages and other non-hardware expenses.

The agency has said it would try to secure a budget of 5.02 trillion yen ($39.84 billion) for the fiscal year beginning next April, a rise of 1.8 percent from the current year.

($1 equals 126.00 yen)