As I understand your question app1 is not yours but you want to use its functionality from within your app (app2). If this is the case then you must follow Android's rules of inter-App communications which are the Intents. If app1 is a generic utility application (like a bar-code reader or a picture editor etc) then their needed intents will be well known to you (as a developer) and you can use them without any problem.
Now if app1 is not installed in the users device, you can always do a check and prompt the user for the installation of it. Furthermore, if licensing policy of app1 is not a problem, you can distribute its apk with your application and install it on the user's device.
Here is a code sample to check if an application is installed (Actually it checks if it can be launched therefore is installed):
public static boolean isAppInstalled(Context cx, String packagename) {
PackageManager pm = cx.getPackageManager();
Intent i = pm.getLaunchIntentForPackage(packagename);
return (i != null);
}
As for prompting the user for downloading and install it you may start here
And if you are distributing the apk from within your application you may take a look here on how to launch it.
Finally, about converting an apk to a jar, I don't know if this is possible but if it is it will be some kind of hack which is not the best practice to create an application. On the other hand there are many free android libraries (jar files) out there which are covering a very broad field of functionality and you can integrate them in your application very easy.
Hope this helps...