Japan and the Philippines on Thursday broadly agreed on a pact for the transfer of defense equipment and technology, as they step up their cooperation over China's muscle-flexing in regional waters.
The deal was struck between Prime Minister Shinzo Abe and Philippine President Benigno Aquino after they finished attending the Asia-Pacific Economic Cooperation forum summit in Manila.
"We have taken a significant step forward in enhancing our defense and security relations by agreeing in principle (on the accord)," Aquino told a joint press conference. "We are hopeful that we can conclude and sign this agreement sooner rather than later."