Hitachi Ltd. and Computer Sciences Corp., a major U.S. system consulting firm, are discussing cooperating in the development of key component systems for Japan's "digital government" plan, industry sources said Thursday.

The components include a system to verify the identities of individuals and businesses when they submit applications to government ministries and agents, as well as to local governments for official documents such as certificates of residence.

Hitachi has advanced technology for coding personal and corporate information as well as in the production of verification cards, while CSC has built relevant computer systems for various companies, including Japanese insurance houses, the sources said.

Hitachi and CSC may cooperate as the Japanese government plans to go digital in fiscal 2003 under its "Millennium Project," with an online network linking ministries, agencies and municipalities

The market for supplying systems for the project is expected to be worth 1 trillion yen.