The Japanese and US governments have reached a basic agreement on the deal, a compromise between Tokyo's aim for "independent development" of such satellites and Washington's drive to sell US-made craft, the reports said.

They will exchange a memorandum of of understanding on the transfer of technology "in the near future," the Jiji and Kyodo news agencies said, quoting government sources.

The foreign ministry only said talks were still underway on the satellite issue.

"There has been close and wide-ranging consultation on the matter between the two sides," a ministry official in charge of the talks said.

"We are not yet able to comment on the content of the talks."

The Tokyo government announced last April it would launch four spy satellites in the year to March 2003, a 200 billion-yen (1.9 billion-dollar) project prompted by North Korea's rocket launch in August last year.

North Korea shocked the region by test-firing a suspected medium-range Taepodong I missile over Japan and into the Pacific, calling it a satellite launch.

The Stalinist state, suspected of developing longer-range missiles, said Friday it would not launch a missile while it is in talks with the United States.

Washington had initially pressured Tokyo to buy a US-made craft as the first of the four reconnaissance satellites. The price was estimated at 20-30 billion yen (190-285 million dollars),

But US Defence Secretary William Cohen agreed in a meeting with his Japanese counterpart Hosei Norota last July to support and "cooperate" with Japan's development of spy satellites.

Two of the satellites will carry optical sensors which can identify objects one meter (3.3 feet) long. The other two will use radar which can function in cloudy weather or at night.

Tokyo will buy from the United States instruments to control the direction of optical sensors and to send and analyse images taken by the planned satellites, the reports said.

It will be "difficult for Japan to develop these instruments with its own technologies in a short period of time," Jiji quoted a Japanese government source as saying.

The two sides have yet to work out measures to prevent the US parts and technology from slipping to third countries, they added.

Copyright 1999 AFP. All rights reserved. The material on this page is provided by AFP and may not be published, broadcast, rewritten or redistributed.

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Satellite Launch To Boost DTH In India
Calcutta, India (SPX) Dec 28, 2005
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