So far i know the Germans wanted the SR.177
and were developing a rocket engine for it: the P111 kerolox, high pressure, staged combustion cycle.
SR.177 was victim of infamous the
1957 Defence White Paper, which called for crewed combat aircraft to be replaced by missiles.
after that rotten paper was out, the OR.337 was cancelled
while SR.177 prototype was 90% completed at Saunders-Roe
and then came the Germans.
They were furious because they needed the SR.177 as backbone for there Airforce
The Germans wanted the Rolls-Royce RB.153 engine instead the Gyron Jr, also they demanded SR.177 as a strike fighter instead.
Saunders-Roe start hasty modification on SR.177
in mean time were political in-fighting about SR.177, between the Minister of Supply Aubrey Jones and
Baron Duncan Sandys, the moron behind the infamous the 1957 Defence White Paper.
While Heinkel preparing to manufacture the SR.177 locally under licence,
Japan show also interest on SR.177 if get build.
and here went everything wrong, i don't know by wrong translation or miss understanding...
the Germans demanded the arrangements to be between governments, instead of between the germans and Saunders-Roe.
In December 1957 the Germans step out SR.177 program and buy the F-104G (G for Germany) instead.