The Japanese consortium bidding for a $35 billion project to build submarines for Australia said Tuesday it is confident it can build the boats in Australia from the outset should the Australian government request it.

Defense Ministry spokesman Masaki Ishikawa was effectively confirming that the Japanese government would be willing to build all of the submarines in Australia, where manufacturing jobs are a hot political issue.

European rivals Thysenkrupp Marine Systems from Germany and French state-owned naval giant DCNS had both previously pledged to build the subs entirely in Australia, but Japan had been reticent to commit until recently.