Tag Archive for: ANZUS

Smooth sailing? Australia, New Zealand and the United States partnering in–and with–the Pacific islands

Australia, New Zealand and the United States should help create an ASEAN-style forum for Pacific island nations to discuss security and manage geopolitical challenges.

The call for a dialogue, modelled on the ASEAN regional forum, is one of several recommendations to improve security partnerships and coordination in the region, reducing the risk that the three countries trip over one another and lose sight of the Pacific’s own priorities as they deepen their Pacific ties out of strategic necessity amid China’s growing interest.

While focussing on those three countries, this report stresses that wider partnerships should be considered, including with France, India, Japan, South Korea, the United Kingdom and European Union.

The report states that the three countries will have to get used to greater Chinese involvement in the Pacific, even if they don’t accept it, much less like it.

Sliding-door moments: ANZUS and the Blue Pacific

The report examines some key ‘sliding-door’ moments that have shaped the trajectory of ANZUS in the Pacific Island region over seven decades, to reach the current confused state within the alliance regarding its aims in the Pacific Islands.

Our Pacific neighbours recognise that their security is tied up with the region’s new and complex geopolitical environment and they have made it clear that they have no wish to be a catspaw in any strategic rivalries.

The report argues that ANZUS has not been fully functional as an alliance for several decades. If its three members are not unified on Pacific Island regional security, the alliance can scarcely advance the Islands concerns more widely.

For these reasons, the report recommends that ANZUS strengthen its internal machinery by finding the accommodation needed to resume ANZUS Council Meetings. It also recommends using the Treaty’s Article VIII provisions to incorporate supportive extra-regional powers into an ‘ANZUS Plus’ While recognising that ANZUS isn’t a humanitarian aid agency, as co-author Dr Anthony Bergin notes, “we can’t ignore the security importance of regional infrastructure.”

The report also recommends that the ANZUS allies act proactively through national aid programmes to identify and protect these interests in partnership with the Island states’ public and private sectors to prevent key assets becoming strategic bones of contention.

ANZUS at 70: the past, present and future of the alliance

The ANZUS Treaty was signed on 1 September 1951 in San Francisco. It was the product of energetic Australian lobbying to secure a formal US commitment to Australian and New Zealand security. At the time, the shape of Asian security after World War II was still developing. Canberra worried that a ‘soft’ peace treaty with Japan might one day allow a return of a militarised regime to threaten the region.

ANZUS at 70 explores the past, present and future of the alliance relationship, drawing on a wide range of authors with deep professional interest in the alliance. Our aim is to provide lively and comprehensible analysis of key historical points in the life of the treaty and indeed of the broader Australia–US bilateral relationship, which traces its defence origins back to before World War I.

ANZUS today encompasses much more than defence and intelligence cooperation. Newer areas of collaboration include work on cybersecurity, space, supply chains, industrial production, rare earths, emerging science and technology areas such as quantum computing, climate change and wider engagement with countries and institutions beyond ANZUS’s initial scope or intention.

The treaty remains a core component of wider and deeper relations between Australia and the US. This study aims to show the range of those ties, to understand the many and varied challenges we face today and to understand how ANZUS might be shaped to meet future events.

Watch the launch webinar here.

Preserving the knowledge edge: Surveillance cooperation and the US–Australia alliance in Asia

The US–Australia alliance is the bedrock of Australia’s defence policy. Successive governments have looked to the alliance for access to military technology, intelligence and training, as well as a promise of support against direct threats to Australia.

However, Australia, the US and other regional allies today face a rapidly changing strategic environment in the Indo-Pacific. The American ‘rebalance’ to Asia represents recognition by the US that it needs to give greater priority to its management of the changing balance—an effort firmly endorsed by President Obama in his address at theUniversity of Queensland.

Acting alone, Australia couldn’t possibly achieve the level of awareness that the evolving strategic environment demands. In alliance, it has the resources to ‘fill the gaps’ that remain in the US’s coverage of the region. This is why the C4ISR relationship with the US in the Indo-Pacific provides such a critical benefit to both members in the alliance. US–Australian C4ISR cooperation will be essential to the success of the US rebalance, but also to Australia’s own immediate security in a strategic environment in which more and more countries operate high-technology platforms that once used to be the preserve of Australia and its allies.

Tag Archive for: ANZUS

ANZUS at 70: Public opinion and the alliance

Since 1951, when the ANZUS Treaty between Australia, New Zealand and the US was signed, the alliance with the US has been the cornerstone of Australian defence policy. From the public’s perspective, it’s one of the best recognised and understood aspects of contemporary Australian defence and attracts regular media attention and discussion.

The immediate post-war period also coincided with the rise of opinion polling in Australia. Borrowing techniques pioneered in the US in the 1930s by George Gallup, Keith Murdoch and his then employee, Roy Morgan, had introduced opinion polls in Australia in 1941. The organisation they created dominated Australian polling until the 1970s. Thanks to those and later polls, we possess a wealth of material about public views of relations with the US.

Post-war public opinion

Australia’s experience in World War II underscored the importance of the US to Australian security. While public opinion didn’t play a leading role in initiating the negotiations that led to the ANZUS Treaty, national sentiment about Australia’s position within the region was important in freeing the government to pursue a foreign policy shift away from Britain and towards the US.

That change resonated with the public. Three opinion polls conducted between 1944 and 1948 show increasing public concern about the possibility of a war with the Soviet Union within the next 25 years (Table 1). In 1944, the view that there would be war was held by 42% of the survey respondents, increasing to 67% by 1948. Interestingly, the proportion who didn’t have a view on the topic declined from almost a quarter of the respondents in 1944 to just 4% in 1948. This reflected the increasing frequency of public debate about the potential threats that were emerging in the region.

Public concern about the Soviet Union’s military intentions, as well as unease over the possibility of resurgent Japanese militarism, was accompanied by widespread dissatisfaction with the UN.

Table 1: Likelihood of another world war, 1944 to 1948 (%)

1944 1946 1948
Will be war 42 62 67
Will not be war 34 18 29
Undecided 24 20 4

The public was therefore very receptive to the idea of a security treaty with the US. A survey question in June 1950—shortly before the North Koreans invaded South Korea—asked about a possible treaty. The survey showed that an overwhelming majority of the respondents—87%— supported Australia signing such a treaty, and just 7% opposed it (Table 2).

Table 2: Attitudes towards a treaty with the US, 1950 (%)

Attitude %
Favour 87
Oppose 7
Undecided 6

Public support for the ANZUS Treaty

What’s the level of public support for the ANZUS Treaty today? Since the early 1990s, when the question was first asked in an opinion survey, a large majority of the public has viewed the treaty as important for protecting Australia’s security. Between eight and nine out of every 10 respondents have seen the treaty as either ‘very’ or ‘fairly’ important to Australia’s security, with peaks of support in 2001, immediately after the 9/11 attacks, and in 2009 (Figure 1). The lowest levels of public support were recorded in 1993, just after the collapse of the Soviet Union, and in 2019, during the presidency of Donald Trump.

Figure 1: Support for the ANZUS alliance, 1993 to 2019 (%)

‘How important do you think the Australian alliance with the United States under the ANZUS Treaty is for protecting Australia’s security?’

Sources: Australian Election Study; Survey of Defence Issues; ANUpoll.

Does the public have confidence in the US to meet its treaty obligations if it’s asked to? The extent to which the Australian public has trust in the US to defend Australia if we were attacked shows that the public has greatest confidence when the US has demonstrated a willingness to engage in overseas conflicts and play a major role in world affairs. Consequently, there was greatest trust immediately after the 9/11 attacks, when the US committed to the invasion of Afghanistan and then to the invasion of Iraq.

The trends also show several periods when trust in the US declined. The lowest level of trust occurred in 2000, just before 9/11 (Figure 2). That momentary decline may have been partly a public response to the US ruling out direct military involvement in the 1999 East Timor crisis.

The lower levels of trust in the mid-2000s also reflected the unpopularity of the free trade agreement with the US, ratified in 2004. The election of Trump and its full implications for US military involvement around the world were evident in 2019, when just 23% of respondents said they had ‘very great’ trust.

Figure 2: Trust in the US to defend Australia, 1971 to 2019

‘If Australia’s security were threatened by some other country, how much trust do you feel Australia can have in the United States to come to Australia’s defence?’

Sources: US Information Service; Australian Election Study; Survey of Defence Issues (question wording varied slightly).

The future of the ANZUS Treaty

While the ANZUS Treaty attracts widespread public support, social changes are one mechanism by which that support could erode. One source of change is generational and, as those who have personal experience of World War II and its aftermath leave the electorate, overall public support for the treaty may decline. A second source is immigration: as the ethnic composition of the population changes, that may have implications for public support for the alliance.

Analysis of the surveys suggests that, while age is a factor in support for ANZUS, its effect is less generation-than age-related. The passing of the World War II and immediate postwar generations wouldn’t appear to represent an existential threat to ANZUS. By contrast, being born overseas significantly reduces support for ANZUS, most notably from those born in Asia and Northern Europe. It would appear that large-scale immigration, particularly from within our region, is indeed changing overall support for the alliance, albeit gradually.

Much more important than immigration, however, is political leadership. This underpins the importance of elite consensus on the alliance. Calls to subject ANZUS, and the force deployments that arise from it, to greater public scrutiny and debate are opposed by political leaders for that very reason. For ANZUS to continue to attract widespread public support, politicians must resist turning it into a partisan battleground.

Conclusion

Australian public attitudes to the US–Australia alliance have been strongly consistent; even at times when the polls have reflected some concern or doubt about the role of the US in the region or, more broadly, in world affairs, the public has continued to express high levels of support for the alliance. As a result, while the election of Trump had a tangible effect on Australian public opinion of the US as a world leader, the changes observed in the surveys start from a high base when a large majority had an optimistic view of US relations, making the observed decline relative.

That observation is further strengthened when considering support for ANZUS over the full period for which polling data on these issues is available.2 Where there were observable changes over that time, they have been in the degree of support for the alliance. Respondents have shifted between ‘very important’ and ‘fairly important’ in their responses, rather than moving in the direction of seeing the alliance as unimportant. Moreover, the trends show that those taking a strong position in favour of ANZUS are proportionately greater than those who take a strong stance against it.

The elite, bipartisan consensus that we witness in Australian politics over the centrality of the US alliance to Australian foreign policy is both reflected and reinforced in the stable and continuing support the public has for this security relationship.

This article draws on Chapter 3 of Danielle Chubb and Ian McAllister, Australian public opinion, defence and foreign policy: attitudes and trends since 1945, Palgrave, London, 2020, where more details about the sources used are provided.

This post is an excerpt from ANZUS at 70: the past, present and future of the alliance, published by ASPI with support from the American Chamber of Commerce in Australia and edited by Patrick Walters.

ANZUS at 70: Technological cooperation—a critical alliance pillar

Something significant sits behind the vital Australia–US military and political alliance: technological cooperation. It gives both a practical and strategic edge to the bilateral relationship. Technology cooperation is a key pillar in the interoperability between our military forces, it enabled our cooperation to put men on the Moon and is driving renewed determination to go beyond the Moon to Mars, and it fuels successful collaborations among our universities in sectors from medical science to quantum technologies.

Looking back, technological cooperation must be recognised for the critical role it’s played in bringing Australia and the US together and achieving shared objectives. But now it’s time to look forward: the imperative to work even more closely, as trusted friends and allies, is only growing in magnitude and urgency. Technology itself has now become far more than an enabler of our daily lives. It’s a source of global power, geopolitical influence and control, and strategic and economic competition. And nowhere is that more apparent than in the Indo-Pacific region.

The quest by some actors—states and companies—for monopolies over technologies that are potential game-changers in daily life, and in conflict, has morphed from competition into geostrategic rivalry. The democratisation of technology was, for a period, largely celebrated as a global good—it put into the hands of individuals, groups and nation-states alike an ability to connect, communicate, integrate and innovate. Yet highly destabilising efforts by malicious state and non-state actors to control, manipulate and abuse a suite of capabilities that many in the world rely upon present a new and dangerous challenge. Open, free and independent societies—as well as the fragile system of rules and norms governing the appropriate use and application of critical technologies—are increasingly under threat.

Australia and the US are natural political, security and diplomatic partners in the important technological cooperation work ahead. Along with other democracies and like-minded partners—especially in the Indo-Pacific region, which incubates much of the world’s technological innovation and has become a hotbed of strategic technological competition—Australia and the US must focus their efforts on ensuring that the development and application of critical technologies reflect the principles and values that support the interests of free, open and independent societies. This must be more than just slogans about a ‘free and open’ internet. It means doubling down on the work underway to strengthen rules and norms in the technology and information sphere, and to ensure that international institutions are appropriately equipped to uphold them.

Strategic partnerships and alliances, such as the one between Australia and the US, are multidimensional and comprehensive. There’s enormous potential for critical technology policy to play a more central role in strategic partnerships, and in particular the Australia–US alliance. That potential—which would benefit from greater strategic intent—spans diplomacy and foreign policy, military, commercial and trade opportunities.

In 2020, Australia expanded the remit of the country’s inaugural Ambassador for Cyber Affairs (established in 2017) to include ‘critical technology’, reflecting the growing importance of technology in geopolitics. This diplomatic work must also extend to the protections of human rights, particularly as, for example, surveillance technologies become increasingly ubiquitous and can so easily be manipulated and deployed for nefarious purposes.

Diplomatically, there’s enormous potential for the Australia–US alliance to leverage and capitalise on the positive momentum of the Quad (the US, Australia, India and Japan). The Quad’s newly announced ‘critical and emerging technology group’ provides an obvious vehicle for both countries to build up and invest in. Also important are related initiatives such as Australia’s new technology-focused Sydney Dialogue initiative, hosted by ASPI, which aims to fill an important gap by bringing together the world’s top political and technology leaders to work towards common understandings of technological challenges and policy responses.

Militarily, the cooperation between Australia and the US that began under the US Department of Defense’s Third Offset Strategy should be reignited. The strategy was never solely about new technologies. It was about leveraging the US’s competitive advantages in its commercial and industrial innovation, and its ability to bring that innovation (often technological and often developed in partnership with others) to the war fighter. Most importantly, the collaborative framework provided by the strategy had at its heart working with allies and partners to reimagine operational concepts and constructs in order to strengthen conventional deterrence; in other words, to prevent conflict. Nothing is as urgent or as important as that work is today.

Initiatives aligned with the Third Offset Strategy, such as the Strategic Capabilities Office and the Defence Innovation Unit, have a role to play in bringing our nations’ capabilities together across the government – private sector divide. Technological innovation in both nations has ‘largely shifted from government labs to the private sector; and … the US needs to find an affordable way to maintain deterrence and stability.’ Another initiative that should be considered by the Australian government is building an Australian version of the US Defense Advanced Research Projects Agency (DARPA). Such an investment wouldn’t just be an investment in Australia’s shallow R&D base, but would also help to build government, business and university links in strategic technology fields important to the Australian defence community and to the Australia–US alliance more broadly. Recent developments related to the Defence Science and Technology Group are an important step in moving towards that goal and better aligning science and technology work with Defence’s strategic priorities.

Arms control regimes created many decades ago remain vitally important, but they need updating. They were designed to keep critical and sensitive technologies out of the hands of malign actors and limit the proliferation of technologies of concern. But elements of those regimes now actively constrain cooperation between allies such as Australia and the US in vital areas in which commercial and industrial gains are simply outpacing the governance systems designed to control them.

Economically and commercially, Australia and the US are well positioned to move forward in a post-Covid world with renewed commitment to technology as an explicit basis for cooperation. Commercially, space, defence and critical technology industry cooperation is a clear geostrategic imperative for our two countries. Entrenched barriers to enhanced technological cooperation are difficult to reform quickly, but vital, operationally relevant collaboration could be boosted in the immediate term by work to agree on specific areas and processes for exemptions to facilitate Australian and US partnership on shared strategic problems.

Australia is a highly agile and capable technological partner to the US, and affordable deterrence and strategic stability should be core drivers of our combined technological and industrial efforts into the future. Creating the space for significantly enhanced trade and investment between Australia and the US in space, defence and other crucial technology sectors, such as in quantum computing, critical minerals and biotechnology, is entirely consistent with the important but often underappreciated role the US plays as Australia’s largest direct investor. It makes more sense than ever to ensure that this can continue in industries and technologies that are central to our common national security and that contribute to the broader security, stability and prosperity of the Indo-Pacific region.

Finally, Australia and the US should recommit, through practical initiatives, to Australia’s 2017 inclusion in the US National Technology and Industrial Base and ensure that our cooperation is optimised for the world in which we find ourselves. Such initiatives include successfully negotiating a technical safeguards agreement to enable strong US commercial and government investment in an Australian sovereign space launch capability. The decision to negotiate such an agreement, announced by Australian ministers on 1 July 2021, spotlights Australia’s competitive advantages precisely when governments and multinationals are looking for stable and trusted markets, exactly like Australia, that have proven they can protect sensitive technologies.

This post is an excerpt from ANZUS at 70: the past, present and future of the alliance, published by ASPI with support from the American Chamber of Commerce in Australia and edited by Patrick Walters.

Modernising ANZUS: Next-generation perspectives on the US–Australia alliance

Amid the debate last week over the merits of travelling to Washington for the annual AUSMIN talks and donning face masks during a global pandemic, the defence and foreign ministers of Australia and the United States delivered a direct and persuasive joint statement.

Predictably, Covid-19 features prominently. The geographical focus on the alliance moving squarely back to the Indo-Pacific is at the forefront. The boilerplate statements on strengthening alliances and cooperation with other states, and the region being ‘rules-based’, ‘stable’, ‘prosperous’ and ‘inclusive’, are all there. The key issues of China, economic coercion, cyber threats, the Pacific islands, the women, peace and security agenda, and critical minerals were highlighted.

In the vein of always keeping your audience wanting more, we were teased with the announcement of the ‘Statement of principles on alliance defense cooperation and force posture priorities in the Indo-Pacific’. We then were denied an appreciation of the document’s potential importance by its classified status.

But what’s often just as important is what’s left out or not said. While an AUSMIN statement can’t cover everything in the bilateral relationship, it should shine a light on both immediate concerns and the medium- to long-term agendas.

What was glaringly absent was climate change—both as a potential driver for security issues in the Indo-Pacific and in its broader role as a global geopolitical challenge. Other than rare earths, trade and investment were also underdone, with the main focus being in the context of the Covid-19 crisis. These core areas are especially important as the geopolitical environment provides a new set of concerns for the US–Australia bilateral relationship.

This means that modernising while continuing to strengthen the alliance is more important than ever.

Over the decades, the alliance has proven itself to be incredibly adaptive. Each new generation of Americans and Australians facing changing circumstances need to question their engagement and discuss how they will shape the relationship. In addressing this challenge, the Perth USAsia Centre, in partnership with the Griffith Asia Institute, La Trobe Asia and the National Security College, ran a series of workshops in 2019–20 with ‘next-generation leaders’ in the US–Australia alliance. Forty-six young professionals and graduate students participated in workshops in Brisbane, Perth, Melbourne and Canberra.

The outcome of this program is a report in which the emerging leaders chart out a series of recommendations for the alliance. It is a window into how young Australians view the future.

The single biggest feature is their focus on investment—economic, intellectual and research—to reshape the traditional alliance. These range from a joint space innovation centre, to youth-led research and development, diversification of trade through an economic ‘step-up’ with Southeast Asia, and a joint workforce for developing clean energy and responding to climate change in the Pacific islands.

While these young people have an appreciation for the traditional security relationship, they also conceptualise the alliance in terms of new frontiers of strategic cooperation. These broadly fall into two categories.

The first is leveraging the alliance for pursuing shared geopolitical interests in the Indo-Pacific, which was also evident in the AUSMIN statement. The young leaders’ report highlights the new importance of the Pacific islands, including an analysis of Australia’s whole-of-government efforts in the region as the new diplomatic battleground of major-power relations between China and the US. However, as the report highlights, and the AUSMIN statement overlooks, engagement must take place on the terms of Pacific island states rather than on our terms. It is ‘time to listen up, not just step up, in the Pacific’, especially on the humanitarian and environmental aspects of security concerns.

The second is the opportunity to leverage the alliance to advance shared interests in overcoming non-traditional security threats—such as climate change and energy—as well as cooperating in the creation of new values and norms in non-traditional areas such as space. Again, these recommendations are not in the AUSMIN statement, yet are a significant opportunity for bilateral cooperation between Australia and the US.

This means young people are taking a long-term view of the alliance and how it might be leveraged to solve complex regional and global challenges. As they navigate the road ahead, they are searching for innovative policy solutions for traditional security threats that intersect with non-traditional concerns such as global pandemics, cybersecurity and a changing climate.

Last week’s AUSMIN took place at a critical juncture, highlighting significant and unprecedented challenges that the next generation of custodians of Australia’s most important bilateral partnership face. This is an opportunity to leverage the strength of the existing US–Australia relationship, while modernising it in ways that strengthen and build on non-security foundations so that it continues to be relevant in the decades ahead.

An anti-access/area-denial capability for Australia?

On a recent episode of ASPI’s Policy, Guns and Money podcast, analysts Marcus Hellyer and Andrew Davies debated the question of whether Australia needs an additional long-range strike capability. The issue had just been raised by two former Royal Australian Air Force chiefs, Leo Davies and Geoff Brown.

Andrew Davies asked who we’re going to strike, and why, and suggested that having additional strike power could get us into a dangerous situation that we might not be able to get out of. Hellyer made the case that long-range strike would raise the cost for any adversary—specifically China—that sought to operate close to Australia’s maritime and air approaches, including from facilities hosted by nations in our region.

Alan Dupont, writing in The Australian a few days later, argued that a balanced force is needed and that airpower should not be prioritised over ground forces. He dismisses the idea of the RAAF acquiring a long-range bomber such as the B-21 Raider and says that we need to ‘get serious about using unmanned strike aircraft in tandem with smaller, dispensable drones, land-based, long-range precision guided munitions and ballistic missiles all of which can be turbocharged by artificial intelligence’.

Dupont also argues that continued investment in the US–Australia alliance is critical, and notes that the Australian Defence Force has demonstrated operational flexibility in providing support to counter a variety of threats in the Middle East, Afghanistan and the Indian Ocean. Those skills remain pertinent even in an era of heightened great-power competition.

But this debate is not just about platforms or even a specific capability. It’s really about our military strategy in an era of rapid and unpredictable change, as Paul Dibb has pointed out. Is the military strategy upon which the 2016 defence white paper, and preceding white papers going back to 1987’s The defence of Australia, are based still relevant to today’s deteriorating strategic outlook?

As I’ve said before, I’m not convinced that continuing to rely on a ‘moat’ (the so-called sea–air gap) as the basis for defending Australia is credible in the face of the new military technologies—such as long-range conventional ballistic- and cruise-missile systems, hypersonic weapons, and advanced air and naval capabilities—now appearing in the region, particularly in China’s military forces. The recent report by the US–China Economic and Security Commission, which covered China’s military space capabilities, noted that the ability of the People’s Liberation Army to generate military effect through space and cyberspace is growing. That will make the sea–air gap narrower and less defensible by traditional platforms.

Dupont emphasises the need to reinvest in the US–Australia alliance under more adverse strategic circumstances, but how we achieve that is an important question. Leaving the US to sail into harm’s way, perhaps during a crisis over Taiwan in the next decade, because we lack the means to project power rapidly alongside its forces won’t strengthen the alliance. A better answer is to raise our strategic currency in Washington by acquiring new capability to directly share the defence burden quickly, precisely and decisively.

Ignoring the issue of the strike gap risks our not having the means to support the US at some future critical hour. This is not to say that the ADF as it’s currently configured, or with the future force structure in mind, is incapable of contributing to a coalition operation. Both the Hobart-class air warfare destroyers and the Hunter-class future frigates can ‘plug into’ US taskforces, and the Attack-class future submarines will also be able to make a valuable contribution. However, the first of the submarines won’t appear until 2034 at the earliest, and we won’t have the first frigate until the late 2020s. Because our current naval surface-warfare capabilities don’t have a credible long-range land-strike or anti-surface-warfare system, they would have to go well within the range of China’s missiles in its anti-access/area-denial (A2/AD) envelope to deliver a limited strike.

A more fundamental issue is whether events will have decided the outcome of the Indo-Pacific strategic contest well before the ADF’s future force is in place. Related questions include how advances in unmanned systems and hypersonics will transform the operational environment and whether legacy platforms will be able to keep up.

Hellyer’s analyses of options for projecting power (here and here) demonstrate that in terms of the RAAF’s strike and air combat capability, the current and planned forces, while technologically advanced, lack the range, persistence and payload to meet an increasing challenge to the region from a rising China. Having access to forward air bases will help, but it will also increase costs because our forces will then be located well within China’s expanding A2/AD envelope.

Debating the case for long-range strike implies building an A2/AD capability that emphasises projecting power forward rather than continuing a narrow denial strategy that surrenders the initiative to our adversaries. They can deploy their forces out of harm’s way and choose the time and place to strike at our critical defence facilities in the north unmolested. We are then left trying to defend our territory and airspace, or our expeditionary naval forces, against their cruise- and ballistic-missile capabilities. Our defences get swamped, ships are sunk and our bases are destroyed.

Long-range strike gives us the basis of a credible A2/AD capability for the ADF that raises the cost and operational complexity for any major-power adversary, contributes towards strengthened non-nuclear deterrence, and reinforces the US–Australia strategic alliance.

Certainly, there are no quick, cheap fixes for the strike gap. All the options—B-21 Raider, land-based ballistic missiles and long-range unmanned combat aerial vehicles—have cost, developmental and political implications that we can’t ignore. But accepting the strike gap means also accepting that we are less able to support our essential ally in a much more contested environment against a peer adversary that is clearly intent on directly challenging both the US’s and our security interests. Strengthening the alliance in a clear, decisive and highly visible way would signal to Washington that we will not be a free rider in a much more dangerous future.

Indo-Pacific security should also be a European affair

Charles Edel and John Lee’s comprehensive report, The future of the US–Australia alliance in an era of great power competition, exposes evident gaps in the way both Australia and the US think about European engagement in the Indo-Pacific.

The report, published in June by the United States Studies Centre at the University of Sydney, is an erudite analysis of the challenges and opportunities ahead for the US–Australia alliance as each country navigates its increasingly complex relationship with a rising China in the region. The authors delve into areas of convergence between the US and Australia, illustrate divergent perspectives within the alliance on the China question, and make an effort to ‘bridge’ the gap. But, surely, any serious attempt to put the US and Australia on the path ‘to recapitalising their alliance and modelling how to revitalise other alliances in the region’ requires engagement from the outset with the European Union.

The region is of critical strategic significance to the EU, and yet the report is devoid of any mention of the EU or of European undertakings in the Indo-Pacific. The EU’s 2016 Global Europe strategy illustrates the centrality of the region to Brussels’ overall global security outlook. The 2018 strategy focuses at length on the EU concept of a ‘connected Asia’:

There is a direct connection between European prosperity and Asian security. In light of the economic weight that Asia represents for the EU—and vice versa—peace and stability in Asia are a prerequisite for our prosperity. We will deepen economic diplomacy and scale up our security role in Asia.

Given its references to a free, open and inclusive Indo-Pacific and the primacy of international law, the report could have engaged with various EU strategies that are geared towards protecting such concepts in the region. Europe’s commitment to upholding international law and norms, as well as human rights, overlaps with the security issues at play in the region.

Obvious examples include the South China Sea and concerns about climate change and increased congestion in the Strait of Malacca. On the basis of these mutual security interests, the US–Australia alliance has plenty of room for engagement with the EU when it comes to the Indo-Pacific.

Economics is a significant driver of the alliance’s interest in a stable and secure Indo-Pacific. The report indicates the need for the US and Australia to better coordinate their economic policies in the region. This is also an area of great interest to the EU. The EU is the world’s largest trading partner, and, as such, China is an indispensable market for Europe. The report discusses the policy imperative to diversify markets in the Indo-Pacific. While this may be a priority, it cannot be achieved in any real terms without engagement and collaboration with the EU.

In particular, the EU is interested in economic engagement with the developing economies and countries in the region. The alliance has a strong interest in fostering developing economies’ engagement with EU markets if not with the US or Australian economies, as opposed to potentially falling prey to China’s debt-for-asset loan arrangements.

The absence of the EU in the Australian and US Indo-Pacific strategic debate also speaks to a challenge Brussels has with communicating its strategic interests far beyond Europe. Similarly, the report picks up on the challenge more broadly for the US and Australia of delivering targeted and consistent messaging about the Indo-Pacific region.

It’s not only important for regional players to understand the strategic interests and positions of the US and Australia in the Indo-Pacific. It’s also crucial for engaged actors (like the EU) to know what the strategic priorities are. Clear messaging communicates expectations of all players in the region. How actors then respond is another matter entirely. Engaging the EU in a collaborative effort on strategic messaging should be a priority for the US and Australian alliance.

The report also recommends that the US and Australia explore new networks of alliances and partners to improve the region’s security outlook. Beyond the obvious potential of broader EU collaboration in this effort, the alliance could engage with individual EU states directly in the Indo-Pacific—such as France. France is wedded to the region and tabled a formal strategy for the Indo-Pacific in 2019.

That document, France and security in the Indo-Pacific, unpacks France’s strategic interests in the region—largely a result of its territory and population within the region. Interestingly, France’s Indo-Pacific strategy also covers Antarctic strategic concerns. Antarctica is an entire continent left out of Edel and Lee’s report, despite the Southern Ocean being linked to both the Indian and Pacific Oceans; the US and Australian stakes in the Antarctic Treaty System; and China’s increased activity in the south polar region.

Overall, ‘leadership’ appears to be the Indo-Pacific currency as we head into 2020. The report urges the US and Australia to do more to expand their leadership remit in the region. Yet, US-style hegemonic leadership is unlikely to be accepted in the region, and Australia still has to demonstrate that it can follow through and lead regionally. To overcome these hurdles, Washington and Canberra must invest in consensus-building beyond the alliance, communicate better with their partners, and develop Indo-Pacific initiatives that include the EU as a key stakeholder.

If we are truly returning to an era of great-power competition, particularly in the Indo-Pacific, it’s imperative for the US and Australia to engage more deeply with the EU. After all, Europe has weathered its fair share of great-power trials and tribulations throughout the centuries.

If the US and Australia are serious about securing the Indo-Pacific and upholding the rules-based global order in the region, it’s clear the alliance will need outside help. The EU is well placed, experienced and strategically intertwined in the Indo-Pacific. As an added bonus, the EU is like-minded. Given the sheer gravity of the traditional and non-traditional security challenges in the Indo-Pacific, it would be shrewd strategy for the alliance to share the load and foster deeper engagement with the EU.

Defending Taiwan: the deterrent effect of uncertainty

The recent debate here on The Strategist between Paul Dibb and Hugh White over how Australia ought to respond to an unprovoked Chinese attack on the island of Taiwan touches upon an issue of deep importance to Australia.

That issue is not, we believe, the future credibility of the ANZUS Treaty. It’s about, as Malcolm Turnbull observed back at the Shangri-La dialogue in 2017, the kind of peace that Australia hopes to enjoy in an Indo-Pacific future.

White’s prescription of relentless conflict avoidance—because we might lose—seems unlikely to give Australia the outcome it most wants: a peace that arises from a rules-based order, or, as Turnbull put it, ‘a world where the big fish neither eat nor intimidate the small’.

Let’s start by clearing one point out of the way. The ANZUS Treaty does not directly obligate Australia to defend Taiwan against Chinese aggression. True, the treaty applies to a much broader geographic area than merely the national territories of its signatories. But the peripheral edges of what constitutes the treaty’s ‘Pacific Area’ are somewhat indistinct.

Both Australia and New Zealand have made clear over time that they do not believe that Taiwan is covered. J.G. Starke’s conclusion (page 129 of his analysis of the treaty) seems to be that ‘if there should be material doubt as to whether the armed attack has occurred within the treaty area, each party … would decide for itself … whether it had so occurred’.

Still, regardless of treaty commitments, Australia and New Zealand have also made clear that a Chinese attack on Taiwan would be a matter of serious concern to them, just as it would be to any country interested in regional security. So it’s entirely possible that Australia might judge that it had strategic interests at risk in such a circumstance. Canberra has defined its strategic interests broadly in recent years, buying into an Indo-Pacific strategic framework rather than merely an Asia–Pacific one. Those interests don’t have to simply match the ANZUS Treaty’s ‘Pacific Area’.

But we have a larger concern with White’s assertion that Australia’s (and America’s) response to an unprovoked Chinese attack on Taiwan should turn upon the judgement of ‘who would win the [subsequent] war’ between China and the US. White argues that ‘a swift, cheap and decisive US victory over China would be very unlikely’. Perhaps. But we’re talking about an unprovoked Chinese attack here. We might consider that a swift, cheap and decisive Chinese victory would also be unlikely.

So the central question is: what might more effectively deter Beijing from setting off on such an adventure in the first place? Suggesting Australian indifference on the issue, let alone counselling US restraint—or even active US statements that it would not act for fear of losing—seems unlikely to have that effect. Indeed, quite the opposite.

It’s the prospect of a protracted, bloody conflict against the US and perhaps others, as well as Taiwan, that ought to be uppermost in Chinese policymakers’ minds when the issue arises in Beijing. Conquest, via an unprovoked attack, shouldn’t look easy and attractive—and should not be licensed by pre-emptive statements that others will not act.

Beijing’s being uncertain about the likelihood of any US administration acting to defend Taiwan—with or without nuclear weapons—is an uncertainty that acts to limit Chinese action. That seems a healthy outcome to keep in mind. It’s one that seems to be given increased power with all the uncertainties about what President Donald Trump may or may not do with US military power.

Besides, if the Chinese generals have done their homework, they’ll know that a successful invasion of Taiwan requires more than Chinese resolve and good anti-access capabilities. It requires China to have air superiority over the Taiwan Strait. Without air superiority, a surface fleet won’t survive its crossing of the strait. China doesn’t currently exercise air superiority over the strait. Whether it will do so 10 years from now is unclear; the answer will depend on what both sides do over that time span.

Sure, if invasion isn’t going to be easy, China could still target Taiwan with missiles from afar, but that scarcely seems a practical avenue to reunification, which seems to be Beijing’s objective. Similarly, a blockade would take time, might well break in the face of persistent challenge, and wouldn’t automatically lead to an endgame of reunification either.

So, let’s not see Australian analysts helping to convince Beijing’s leaders that the prospects of US intervention in the event of a Chinese attack on Taiwan are so low that Beijing can feel free to act as it wishes.

That would not only increase the prospects of military adventurism by an already overconfident PLA. It would also be a dangerously false assurance that could mislead Beijing into walking into a major crisis and potential conflict with the United States.

Hard times in Australian strategic thinking

Australia has long been ‘the lucky country’—basking in endless beaches, summer barbecues, democratic government, and mineral wealth. It’s also been lucky in terms of its strategic policy, able to ride the coat-tails of a global and regional order forged mainly along the Eurasian rimlands. That order ensured Australian security was largely achieved at a distance from its shores, and through a set of arrangements engaging other, stronger Western nations as principal players. True, that occasionally left Australian strategic thinkers stroking their chins and contemplating the relative attractions of ‘forward defence’ versus ‘continental defence’, but that was a luxury countries along the rimlands never had.

The recent joint presentation at the Australian National University by three former senior defence officials (Paul Dibb, Richard Brabin-Smith and Brendan Sargeant)—exploring the question of whether it’s time for a radical shift in Australian defence policy—highlights just how much the ground has shifted. Key assumptions underpinning Australia’s traditional strategic settings have been called into question by the simultaneous empowerment of a range of authoritarian challengers to the existing regional security architecture and the Trump administration’s faltering sense of commitment to that architecture. Strategic competition has moved beyond the rimlands.

So far, 2018 has been a difficult year in Australian strategic thinking. Government, in private, and analysts, more publicly, have begun to speculate on what Australia’s ‘Plan B’ might look like in the event that the ANZUS alliance suddenly becomes less reliable than it has been in the past. In previous years, it has been relatively common to depict the alliance as the central pillar of Australia’s security. Even the idea that Australia might pursue a policy of defence self-reliance typically turns upon an ADF enabled and supported by US high-technology kit, US intelligence, US training and exercising, and privileged access to US logistics stores in time of crisis.

So finding a viable Plan B involves some heavy lifting. Some, indeed, say there is no Plan B; others that Plan B is to find a way back to Plan A. I don’t think that’s entirely true, despite Canberra’s deep attachment to ANZUS. Peter Jennings’ list of 10 projects that an Australian government might pursue to strengthen its regional and national capabilities shows there are options for Australia even in a post-US Asia.

But Plan B has to be more than a muscled-up ADF, for the simple reason that strategic interests are broader than defence interests. A threat to a country’s homeland is typically the last threat to its security, not the first. We want a Plan B that gives us options at an earlier stage as security threats begin to develop.

In essence, that means we want a policy that looks upstream rather than just downstream. Looking upstream means we want to be shapers of our world and not just passive inheritors of a strategic order shaped by others. True, as Anthony Milner has cautioned, we need to be hard-headed in imagining the level of shaping we can do: Asian countries are not about to embark on a wave of alliance-building, either with Australia or each other. Indeed, the region is entering a period of unsettling strategic volatility as Asian great powers start to assume more prominent roles in a—shifting—regional order. Several Asian countries are enjoying a new-found capacity to do some shaping of their own.

Still, the principal guide to Australia’s shaping efforts should be our own strategic objectives. Despite the current disorder in global and regional affairs, those haven’t changed. What Australians want today is the same thing we have wanted for decades: a secure, liberal, prosperous Australia in a secure, liberal, prosperous world.

Our dominant mechanism for pursuing that goal has been maintaining a close strategic partnership with the dominant Western maritime power of the day. But we need to face facts: the coming world is one where Western clout will be felt less. So we will need to be more strategically promiscuous in finding partners for the future, even while admitting to ourselves that the level of overlapping shared interests might not be as great as was the case with ANZUS.

How should we prioritise those overlapping interests? Well, each of the three adjectives in our strategic goal—secure, liberal, prosperous—is important to us. A secure Australia is one where we don’t live under the coercive shadow of a great regional power. A liberal Australia is one where we take the core tenets of democracy and human rights as articles of faith. A prosperous Australia is one where its people aren’t obliged to live in sackcloth and ashes. Moreover, we want to see a world where similar aspirations enjoy widespread support in other countries.

Because all three adjectives are important, our strategic loyalty does not automatically default to whichever great power promises us affluence.

So, yes, we should be thinking about our strategic future. A stronger defence force is a necessary, but not sufficient, condition for achieving the sort of world we want. Partnerships have in the past been central to our strategic success. They will remain so as we go forward. But they must be partnerships we have chosen because they contribute to our objectives. Statecraft will be key here, not just military force.

The Australia–US alliance isn’t in trouble (yet)

The recent exchange between Malcolm Turnbull and Donald Trump over the Manus Island refugee deal has quickly been portrayed as a barometer of the health of the Australia–US alliance. Some observers of the alliance have fretted that Trump will prove to be a wrecking ball through the bilateral relationship and expressed fear that public opinion will turn against the US, providing an opening for China to influence Australia’s future strategic policy choices.

More predictably, opponents of the alliance have seized on President Trump’s behaviour to vindicate their claim that Australia remains supine to a domineering great power. Exemplifying that approach, in recent commentary published in The Australian on the Trump–Turnbull phone-call, former foreign minister Bob Carr dismissively referred to ‘gullible little Australia’ and portrayed the alliance as ‘the only expression of Australia’s international personality’.

It’s easy to be tempted to assume the alliance is in deep trouble after recent events. Trump’s disrespectful tone towards Australia’s Prime Minister and his contemptuous reference to a ‘dumb’ deal with one of America’s most committed allies serves to reaffirm the arrogance and poor judgement of the new President. But does it spell trouble for the Australia–US alliance? At least three points suggest that supporters of ANZUS can rest easy and that alliance opponents should cool their jets.

First off, this is hardly the first time Australian governments and US administrations have muscled up to each other and disagreed on substantive issues. The Menzies government made its displeasure known during the 1960s when the Kennedy and Johnson administrations refused to provide explicit guarantees that Washington would come to Australia’s military assistance if it got into an armed conflict with Indonesia.

And who can forget the well documented feud between Gough Whitlam and Richard Nixon? Malcolm Fraser made no secret of his disdain for Jimmy Carter’s strategy of détente, and John Howard and Bill Clinton famously clashed over tariff barriers and Washington’s unwillingness to provide ‘boots on the ground’ in support of Australia’s leadership of the INTERFET operation in 1999. Cross words between allied leaders is standard fare in international relations, and we shouldn’t romanticise the Australia–US alliance as some sort of exception to this—because as history shows, it isn’t.

Second, alliances are robust institutions and more resilient than we give them credit for. NATO split politically over the US-led invasion of Iraq in 2003, but it was essentially business as usual in terms of military cooperation, including on nuclear command and control, which lies at the heart of NATO’s extended deterrence arrangements. With the exception of the multilateral SEATO arrangement that became moribund by the 1970s, it’s hard to think of any alliance involving the US that has been terminated since 1945.

All alliances involve tough conversations which typically revolve around burden sharing: we shouldn’t be disheartened by argy-bargy between leaders over the division of costs in alliances. After all, each member of every alliance in the world seeks to maximise their own influence and minimise their own liabilities. That’s an iron law of international relations.

Third, the animated discussion over “that” call between Turnbull and Trump has risked exaggerating the agency of leaders in determining the fate of alliance relationships. While President Trump is intent on correcting what he sees as free-riding by allies, the reality is that leaders are merely one piece of the puzzle in alliance management. Ironically, Trump’s fixation on squaring the ledger with countries—including allies—that have in his eyes exploited US goodwill may have the effect of strengthening institutional mechanisms in the Australia–US alliance.

Aware that the White House risks permanently alienating valued allies, the Pentagon (including the institutionally powerful US Pacific Command), intelligence agencies, the State Department, and members of Congress will double down on reinforcing institutional arrangements. Intimate intelligence sharing, deep military cooperation, and shared norms about democratic governance are the enduring foundations of the Australia–US alliance, not missives delivered via Twitter.

None of that’s meant to imply that the Australia–US alliance is necessarily immune from risks. The longer Trump continues his current domestic and international collision course, the greater the pressure for the Australian government to publicly push back against the US. Already, in the past three weeks, America’s image as the “indispensable leader of the free world” has been badly damaged and Washington could quickly find itself without committed followers in the international system.

Moreover, should Trump end up pursuing a highly escalatory policy vis-à-vis China, including a trade war and talk about going to war in the South China Sea, Australia would face a serious risk of entrapment in unwanted US adventurism.

Australia seeks US leadership and reassurance, and it has been willing to commit forces and political support in a variety of theatres, including those beyond the Asia–Pacific. But it doesn’t seek disruptive brinkmanship. In such a scenario, the danger of a serious alliance disruption is indeed very high. Until then, however, the chances are good that the alliance can weather the Trump storm.

Why Australia should put Taiwan on the strategic radar

Image courtesy of Flickr user wei zheng wang

Today, ASPI released our report on Time to start worrying again? Cross-strait stability after the 2016 Taiwanese elections (PDF). It argues that the Australian government would be well-advised to pay greater attention to the emerging cross-Strait strategic situation, following Taiwan’s presidential and legislative elections on 16 January 2016.

The Taiwan Strait has long been one of the key flash points in the Asia–Pacific which could trigger a military escalation between China, Taiwan, the United States and (quite possibly) Japan because of the Republic of China’s (ROC) unresolved status. During the administration of Taiwanese President Ma Ying-jeou, cross-Strait relations experienced eight years of stability as well as improved political and economic ties. As a result, some analysts believe that the possibility of a military escalation between mainland China and Taiwan is now extremely remote. However, the Taiwanese elections resulted in the control of the legislature to the Democratic Progressive Party (DPP), and Ma’s China-friendly Kuomintang (KMT) losing the presidency to the pro-independence DPP candidate, Tsai Ying-wen.

Is it time to ‘start worrying about Taiwan again’ as defence strategist Hugh White has warned? And what are the strategic implications for regional security and Australia?

Our report argues that the election did indeed mark a watershed in Taiwan’s political evolution and will require significant adjustments in Taipei and Beijing to maintain cross-Strait peace and stability. To a substantial extent, the election was a vote against the KMT’s pro-China policies. But more deeply, it reflects a fundamental shift in Taiwanese political attitudes and is consistent with a generational shift among Taiwanese voters who have little or no cultural affinity with the mainland. This shift is likely to change the balance of power within Taiwan and will make it difficult for any future party to advocate policies seen as too China-friendly and as undermining Taiwan’s idiosyncratic identity and democracy. It also means that China’s goal of peaceful unification on its terms (that is, the reintegration of the ‘renegade province’ run by ‘separatists’) becomes a distant prospect. Since China’s strategy rests on the expectation that Taiwan must become part of the mainland, both sides will need to find a new modus vivendi.

How likely is such an outcome? We assess that Tsai’s victory won’t automatically lead to greater instability in cross-strait relations. Both sides have a lot to lose from escalating tensions and even an outbreak of war. And there are indications that Taipei and Beijing are trying to carefully navigate through this uncharted post-election period. However, we also caution against too much optimism. Renewed cross-Strait tensions remain a real possibility. Under President Xi Jinping, China has demonstrated a rather uncompromising approach to territorial disputes and the status of Taiwan is a declared ‘core interest’ of Beijing. As well, China continues to change the cross-Strait military balance in its favour, potentially inviting miscalculations and instability. Taiwan is also likely to become more important in the context of growing Sino–US strategic competition and America’s ‘rebalance’ to Asia.

The Taiwan Strait will thus remain dangerous, and Canberra needs to pay closer attention to the evolving cross-Strait situation. Of crucial importance is the question of whether Australia should support its US ally in a future Taiwan contingency. Naturally, Australian politicians prefer to avoid this decision. As former Foreign Minister Alexander Downer and ex-Defence Minister David Johnston stressed in the past, the ANZUS treaty wouldn’t commit Australia to support the US in a Taiwan scenario. Technically speaking that’s correct as the treaty doesn’t oblige Canberra to automatically support Washington in any conflict. The decision for or against participation remains fundamentally political.

However, we believe in the case of an unprovoked Chinese attack on Taiwan and subsequent US involvement, it would be difficult for Australia not to be involved. Washington would certainly look to Canberra for support and in a more contested Asia–Pacific strategic environment the alliance isn’t à la carte where Australia can pick and choose its engagement. As Paul Dibb has established, staying out of such a conflict would significantly damage our alliance with the US. As well, the outcome of a conflict over Taiwan would fundamentally define the future shape of regional security in Asia and thus directly affect Australia’s strategic interests.

As a result, the Taiwan issue should be placed high on the ANZUS agenda. A comprehensive dialogue between Canberra and Washington would be an important instrument to avoid a future ‘expectation gap’ between the two allies. The assumption that in the event of conflict, leaders of both countries would just pick up the phone to agree on a joint strategy could prove problematic, as the stakes across the Taiwan Strait have increased significantly. As well, Australia should acknowledge Taiwan’s potentially constructive role in regional maritime territorial disputes. Finally, Canberra should proactively take steps to enhance Taiwan’s regional political and economic integration as a means to contribute to long-term cross-Strait stability.

The Port of Darwin as a ‘grey zone’ situation

Port grey

Protecting national security equities is a tricky business in an era of globalisation. Four years ago President Obama unveiled Marine rotational training in Darwin as the single most tangible security action to mark America’s long-term Asia-Pacific rebalance. While Australian Army counterparts initially relished this idea of introducing US troops to the crocodiles and harsh environs of the Northern Territory, the modest military step carried great political significance. In the face of Chinese criticism of the move as containment, many wondered how Canberra would balance its growing economic ties to China with its long-term security alliance with the US. The most recent move by Beijing to purchase a lease on the Port of Darwin pushes the seams of those two seemingly contradictory demands.

By putting up US$366 million for an 80% ownership stake in the Port of Darwin, Landbridge Group has just acquired nearly a century of access to one of the alliance’s strategic neighborhoods. Even if the private Chinese company’s transaction was simply for commercial benefit, does anyone believe it will take long for the People’s Liberation Army (PLA) and Ministry of State Security intelligence operatives to acquire privileged access—a permanent VIP pass?

No wonder some prominent American and Australian critics pounced on potential Chinese motivations and argued that the deal facilitates a ‘Chinese renaissance.’ The deal also took most of Washington by surprise, as it came immediately on the heels of high-level alliance consultations. Former Deputy Secretary of State Richard Armitage, who holds an honorary Order of Australia (AC), was nonplused about the apparent breakdown in alliance communications. Yet defenders of the lease, mostly in Australia, noted the obvious economic benefits of the deal and dismissed detractors as ‘xenophobic.’

An objective American analysis of the deal might best begin with the common-ground observation that the long-term leasing arrangement represents another example of a ‘grey zone’ situation that is something other than ‘business as usual’. While the agreement isn’t a direct threat, it’s precisely the kind of incremental step that could, in conjunction with other small actions, wind up exposing major future security vulnerabilities.

The acquisition of strategic real estate, like the building of artificial islands, is an attempt to quietly change facts on the ground and advance China’s strategic posture and interests in the region. Officials would be naïve to assume that the proximity to defense installations and personnel poses no risk at all. While Landbridge may claim that it isn’t a state-owned enterprise, a ‘private’ Landbridge doesn’t exactly exonerate the company when it comes to relations with the Chinese government.

Furthermore, it’s uncanny how Chinese companies appear to be investing heavily in areas where the US has bases or strategic access and training arrangements. Chinese companies have not only demonstrated this through the Port of Darwin case, but also through casinos that Chinese companies are reportedly trying to open in the Northern Mariana Islands. There, millions of dollars go a long way in influencing local leaders in Saipan and Tinian. As a result, these leaders might much prefer Chinese casinos rather than US training and exercise facilities.

We would underscore Peter Jennings’s point that this lease tested existing institutions that assess the national security concerns of foreign investments and found them wanting. While Defence Department Secretary, Dennis Richardson says officials in his department were consulted in assessing the deal, it’s surprising that Defence appears to have acquiesced in the lease so effortlessly and free from debate. According to Australian Treasurer Scott Morrison, the deal also evaded formal review by the Australian Treasury’s Foreign Investment Review Board.

There’s something worrisome about the timing of this announcement. It was declared only one day after a bilateral meeting of alliance ministers touted the rotational training and other security cooperation. At a minimum, this breakdown in communications represents an unfortunate aberration from the customary candour that permeates the Canberra–Washington dialogue. In response to a question about possible cooperation concerns with the US as a result of the deal, Richardson commented, ‘If other people have other issues about foreign ownership of whatever, that is not an issue that concerns us unless it impinges on our interests and responsibilities.’

While Australia may view US annoyance at the lack of communication as an affront to their national sovereignty, we would point out that Australia and other US allies are often quick to feel snubbed when they are not consulted about issues of importance to them. This isn’t whinging so much as a recognition that even well-oiled alliances have their limits.

Regrettably, the United States is no better poised than Australia to grapple with this type of indirect risk. Were Washington and Beijing to complete a Bilateral Investment treaty tomorrow, the US could quickly face similar controversies about potential Chinese investments. If neither Australia nor the US is well positioned to analyse these issues—to see that we need a means of looking at property and commercial access as a potential risk, not just an economic opportunity—then surely the alliance is by definition equally unprepared.

The United States and our allies are part of a global economy of which China is a vital part. There’s no way for the United States to encourage China’s continued growth, stability, and participation in global governance without including a high degree of interdependence and thus Chinese presence in our countries, especially in economic domains. The aim of America’s rebalance, after all, isn’t to contain China but to enhance our ability to preserve and adapt an inclusive, rules-based regional and global order. Thus, even though Darwin represents a remote place within a removed country, it’s also part of our shared global economy.

So how should allies like the US and Australia develop safeguards, awareness, and processes for vetting Chinese FDI? As was demonstrated by the ban on Huawei’s involvement in Australia’s National Broadband Network, intelligence agencies can effectively advocate against spying. Additionally, different armed services could champion against ownership as would be the case in a military base. However, Australia’s Defence Department clearly didn’t have much to say about the Landbridge deal—so who’s going to protect Australia’s strategic interests like physical assets?

We would endorse the prudent measure put forward to strengthen the power and independence of the FIRB. In Jennings’ view, the Australian government should ‘redesign the FIRB, give it a statutory basis, separate it from the Treasury, and build a genuine capability to make assessments of risk to national security.’ A strengthened FIRB can more effectively and specifically evaluate potential foreign investment in various elements of infrastructure.

Furthermore, the US and Australia should carefully consider how they collect and analyse business transactions that could compromise national security activities. They should also reconsider the communication mechanisms in their alliance. In this way, a potentially controversial deal is at least shared in advance through the robust intelligence cooperation channels that already exist between these two members of the ‘Five Eyes’ community.

While the economic benefits of the deal for Australians are clear, the resulting concerns about regional security, the process of scrutiny for foreign access to infrastructure, and the nature of the US–Australian alliance urge further discussion. The moral of the story is this: protect core interests but closely scrutinise and monitor potential threats that seek to nibble around those strategic equities. And for mercy sake, communicate.

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