MANILA, Philippines - Manila and Tokyo are finalizing a deal on the transfer of military equipment to the Philippines, Japan said on Wednesday.
According to earlier reports, the deal would also allow the transfer of technology which will upgrade the military capability of the Philippines.
Japanese Deputy Press Secretary Koichi Mizushima told members of the press that their government follows strict rules when exporting equipment.
"In order for us to export or share technologies with other countries, we need to have such a legal arrangement beforehand. I think that is why the countries have started negotiations," Mizushima said.
Mizushima, however, did not say if the agreement will be signed during the bilateral meeting of President Benigno Aquino III and Japanese Prime Minister Shinzo Abe, who is also in the Philippines to attend the Asia Pacific Economic Cooperation Economic Leaders' Meeting.
Japan, the United States and Australia have been the Philippines's allies in an effort to modernize its military and defending its territory, including those in the disputed South China Sea. Both the Philippines and Japan have territorial disputes with China.
China has been claiming parts of the exclusive economic zones of the Philippines in the West Philippine Sea. Meanwhile, Japan and China are both claiming ownership over islands called Senkaku (in Japan) and Diaoyu (in China).
Beijing earlier warned Tokyo to stop making accusations in the South China Sea dispute, citing that Japan is not a concerned party in the issue.
READ: China to Japan: Stop making accusations on sea dispute
Japanese Prime Minister Shinzo Abe reportedly expressed concerns over the sea dispute in his meeting with leaders from the European Union, the United Kingdom and Germany in the sidelines of the G20 summit.
Japan has earlier expressed its support to the Philippines in connection to the arbitrary case that it has filed against China before the Permanent Court of Arbitration under the United Nations.
The Philippines and Japan have an existing strategic partnership agreement which seeks to boost their cooperation on defense and maritime security.