Australia and Japan are in talks for a submarine technology exchange deal, according to Reuters.

In a meeting set next month between both countries' defense and military officials, the agenda for discussion would include the possibility of Japan supplying Australia with a fleet of undersea submarine vessels.

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Both countries are optimistic towards the deal pushing through which would tighten the alliance between the 2 nations.

Japanese Prime Minister Shinzo Abe, has recently been focusing on the country's reform on defense policy. He said that he also sees this as a way for Japan to enter the weapons-supplying industry.

Japanese military officials have expressed willingness to supply Australia with the complete version of the Soryu, Japan's stealth diesel-run submarine manufactured by Mitsubishi Heavy Industries and Kawasaki Heavy Industries.

Likewise, Australian Prime Minister, Tony Abbott, said that he is in favor of the deal which would achieve strategic cooperation with Japan.

Australian officials showed interest in this possible agreement which could stunt the country's dependence on the U.S.

According to Yahoo news, although both countries have a long way to go in reaching a mutual agreement, some speculate that this deal could bring Japan billions of dollars.

Meanwhile, Australia is scheduled to replace its current Collins-class vessels in 2030, a final number on the submarine type and quantity requirement will be finalized after the review due in the third quarter of 2015.

However, some experts predict that China would be threatened by this arrangement. Some say that it may lead Beijing to conclude that Japan would be willing to supply weapons to other nations who oppose China's naval strength, especially with the recent tension caused by the disputes over maritime territories in the East and South China Sea.

An Australian National University professor for strategic studies said that China might feel threatened with the possibility of a Japan-Australia alliance. He adds that the deal would be a major risk for Australia as it would depend on where Japan would be 3 decades from now.

TagsJapan-Australia deal, Soryu, Mitsubishi, Kawasaki, Tony Abbott, weapons deal, submarine deal, World News, asia news