Japan may develop its own surface-to-air missile in a $7.5 billion project, a Japanese newspaper reported last week. The report comes as Tokyo and Washington remain mired in disagreement over a proposal to jointly develop a fighter jet.

The missile would replace the Patriot, which Japan produces under license from the United States under a 1985 agreement. Japan plans to deploy 26 Japanese-made Patriot systems over the next 10 years to replace its aging Nike-J missiles.

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