The submarine technology is a top item at "2+2" talks among the nations' foreign and defense ministers Wednesday in Tokyo.
The study, called "research on marine hydrodynamics," aims to develop technology to build a faster and stealthier submarine with reduced water resistance and a screw with noise-reduction effect on bubbles, Japanese defense officials said earlier this week, briefing reporters on condition of anonymity.
The research would be applicable to any vessel, so would not necessarily lead to the sale of Japanese submarines to Australia, which is exploring purchasing submarines from Germany and France as well.
Japan has also agreed to develop hazmat suits with Britain, and is seeking to export US2 search and rescue aircraft to India.
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Japanese Foreign Minister Fumio Kishida and Defense Minister Itsunori Onodera are hosting their Australian counterparts, Julie Bishop and David Johnston, at Wednesday's meeting. The four are expected to agree to strengthen military ties.
Abe says the US-Japan alliance remains central to his security policy, but has expanded defense cooperation with Britain, France, India and several Asian-Pacific nations, particularly Australia, amid China's growing military activities in the region and concern that budget pressures may reduce America's presence.
Onodera has said Australia has a strong interest in Japan's submarine technology, and that Japan is open to discussing ways to accommodate Australia's interest in the highly classified technology.