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Editors’ picks for 2022: ‘It’s time to talk to, not at, the Pacific’

Originally published 28 March 2022.

When the draft security agreement between Solomon Islands and China landed in the news cycle on Thursday, we shared a sense of dread. Initial analysis of the agreement in the Australian media was typically narrow and, at times, downright unhelpful.

The most outlandish claim was that Australia should be prepared to ‘invade’ Solomon Islands and ‘topple its government’. Apart from being illegal and impracticable, recommendations like this undermine both Solomon Islands’ and Australia’s security. They can be used both to bolster complex domestic power struggles in Solomon Islands and to fuel narratives of Australian militarisation and neo-colonialism, undermining Canberra’s relationships in the Pacific and raising suspicions of its motives.

Other Australian media responses were more measured. But they viewed the agreement primarily through a geopolitical lens. Although the leaked draft didn’t specifically mention it, all assumed that it would inevitably lead to a Chinese ‘military base’ in Solomon Islands. And they all focused on shoring up Australian leadership in the region. Recommendations ranged from Australia building a naval base in Solomon Islands to pursuing a regionwide agreement to ban non-resident powers from basing or deploying military personnel in the Pacific region. Other suggestions included expanding access to the seasonal worker program and increasing educational scholarships.

Largely missing were nuanced analyses that acknowledged the primacy of domestic Solomon Islands politics and the complexity of its geopolitical relationships. This was mostly because few Solomon Islander voices were heard in the initial Australian media storm.

Australian understandings of the Pacific will always be partial unless more space is provided for Pacific voices to participate in robust and nuanced public—and private—debate.

This suggests an urgent need for opportunities for deepening mutual understanding, building relationships and elevating the profiles of Pacific thinkers in Australia and elsewhere. Creating opportunities for Australians and their Pacific counterparts to engage in private discussion is essential to widening and deepening knowledge and relationships.

Track 1.5 dialogues offer one (although not the only) way to provide these opportunities.

Track 1.5 dialogues are informal conversations that include government officials and non-governmental experts all sitting around the same table. In Asia, they are an accepted—and, in the case of the annual Shangri-La Dialogue defence summit, institutionalised—part of the region’s multilateral framework.

But track 1.5 security dialogues comprising Australian, New Zealand and Pacific island officials and non-governmental experts are underutilised. This is despite the fact that they could provide critical opportunities for open and frank closed-door conversations to deepen understanding of the issues at stake and the perspectives of other actors.

We frequently participate in track 1.5 regional security dialogues with Australia’s and New Zealand’s major partners at which Pacific issues are discussed. They are rich and valuable experiences. But Pacific participants are seldom involved. Notably, when Australia asked China to revive a dialogue on the Pacific earlier this month, the proposal didn’t include participation by any Pacific state.

One notable exception was in 2020, when one of us co-hosted the Track 1.5 Pacific Security Dialogue held to inform the Australia–New Zealand–United States Pacific Security Cooperation Dialogue. It was deliberately set up to ensure that the majority of speakers and participants were from the Pacific, which was partly enabled by its being held online due to Covid-19 travel restrictions.

Post-dialogue feedback reflected the value of providing a platform for Pacific voices. Participants appreciated the opportunity to hear from, and exchange views with, Pacific participants. Australian, New Zealand and American participants commented that they hadn’t been aware of the depth of Pacific expertise before the dialogue.

There are several contexts in which track 1.5 dialogues could be held in the Pacific.

Universities could be engaged to facilitate dialogues. For example, later this year, funded by a Defence strategic policy grant, our universities and the Australian National University will host a track 1.5 dialogue between Australian, New Zealand, American, Japanese and Pacific officials and academics on enhancing security cooperation in the Pacific.

In the region, the Pacific Islands Forum has considerable convening authority and could partner with, for example, the University of the South Pacific. The forum’s draft 2050 strategy for the Blue Pacific, which aims to design an effective regional architecture to respond to security and political challenges, provides the imperative. Establishing a Suva dialogue, for example, would embed multitrack diplomacy in both regional security practice and architecture.

Institutionalising a program of track 1.5 dialogues between officials and non-government experts from Australia, New Zealand, other partners and the Pacific would build understanding of the region, enhance relationships, deepen trust and provide a platform for Pacific voices and perspectives. It would provide a forum for uncomfortable conversations and for solutions to be offered to the challenges facing the Pacific and its partners. It would require genuine investment and commitment.

The ‘success’ of these dialogues would probably be difficult to define or identify in the short term. Dialogues don’t carry the same weight at the ballot box or catch as much media attention as rumours of military bases, but the dividends of track 1.5 diplomacy—such as open communication during times of crisis—would be invaluable.

AUSMIN 2022 delivered the US and Australia a major strategic reset

After their latest AUSMIN talks, Australia’s defence and foreign ministers and their US equivalents noted that the alliance and partnership had never been stronger or more vital to regional peace and prosperity. They resolved to evolve their countries’ defence and security cooperation to ensure they’re equipped to deter aggression, to counter coercion and to make space for sovereign decision-making.

This is a far cry from the mindset immediately after World War II. Australia’s engagement in that conflict had been deep. We were one of the most mobilised belligerents of the war and the main supplier to the South West Pacific Area command for much of it, and of personnel to General Douglas MacArthur’s forces until 1944. But we were viewed globally as a secondary zone. We’d been the ‘last bastion’, but the line rapidly receded.

We learned that, in the war’s aftermath, vigorous efforts by Ben Chifley’s government to secure a joint base on Papua New Guinea’s Manus Island and defence agreements had withered on American indifference. During the Berlin airlift and then the Korean War, Australia and the US were mutually engaged, but Australia not prominently. When it came to ANZUS, the US joint chiefs resisted the treaty. When the agreement became inevitable, they ensured it involved no joint command or deep military engagement. For the State Department, ANZUS was to ensure Canberra’s support for a Japanese peace treaty. For the military now planning around the focal points of the Cold War—Europe, North Asia and the Middle East—Australia was geographically and strategically irrelevant.

The 1960s saw a major adjustment, symbolised in 1962 by Secretary of State Dean Rusk’s trip to Australia for the ANZUS Council meeting, the first held outside the US. That reflected growing American concerns with Vietnam and put the hitherto strategically less significant Southeast Asia in American focus. Badly burned by his country’s ongoing involvement in Vietnam, President Richard Nixon, however, restored the region’s previously lower level of significance in 1969 with his Guam doctrine. Australia was effectively enjoined to look to its own defences in the first instance.

Less noticed at the time was the development of a heightened enmeshment of Australian geography with the central balance. As Defense Secretary Robert McNamara enhanced the US triad of nuclear-force platforms, he recognised a critical need for southern hemisphere bases. Pine Gap, North West Cape and Nurrungar became, as the late Des Ball described them, the ‘strategic essence of the US alliance’.

In the 1980s, the logical consequence of these shifts came to be reflected in our defence strategy—self-reliance within the framework of the alliance. Our strategy and force posture were based solely on our capacity to deal with assessed threats by using our ‘force in being’. We determined that we needed to be able to defend ourselves without taxing the US. Pine Gap and Nurrungar were made genuinely joint as the US sought to strengthen its permanence and we situated them in our order of battle. We moved to take over North West Cape.

We were still not central to main American concerns. I recollect Ronald Reagan’s defence secretary, Caspar Weinberger, saying to me: ‘I have to wind up this conversation, Kim. The German defence minister is here, and he is a real intellectual challenge. I have to prepare!’

The end of the Cold War brought an era of peace dividends in defence spending in America and among its allies—disastrously, I would argue, in our case. That was amended after 2001 by the 11 September terrorist attacks on the US, which led to an overwhelming focus on militant Islamic fundamentalism. This incorporated wars in Iraq and Afghanistan and more broadly global terrorist activities. The period did, however, see the negotiation of additional space-related joint facilities from 2010.

Everything changed with the emergence of an economically and militarily competitive China, particularly its militarising of the South China Sea with its island base building, arguments over islands with Japan and South Korea, and the possibility of a military conclusion to the one-China policy with regard to Taiwan. The ‘war on terror’ has now been downgraded in priority. The struggle in Ukraine distracts from the picture. It has brought some American forces back to Europe, but the US has struggled to keep its main engagement as the provision of supplies and intelligence and the imposition of sanctions on Russia. This conflict is highly dangerous and carries the possibility of a broader war. The US is desperately hopeful it can be concluded without spreading. The war’s consequences are immensely costly to the global and European economies and to vital American military supplies.

Which brings us to AUSMIN 2022. The first thing to note is a much more realistic appreciation by the US of the limits of its own capabilities. When I was ambassador to Washington, administration officials would get very annoyed if we failed to describe the US as the pre-eminent power in the Northwest Pacific. That tonality has changed. The US now seeks deterrence through its close interrelationship with militarily effective allies. Diplomatically it seeks the emergence in our region of good relationships with a multiplicity of nations in the main through common views on issues like climate change, food security, infrastructure, natural emergencies and economic prosperity. The AUSMIN communiqué reflects this.

The military dimension, however, is heavily focused on Australia and Japan and the extent to which our military capabilities can be added to those of the US. While AUKUS has much in it about joint research on a wide variety of high-end military technologies, it is driven by Australia’s desire for a nuclear-powered submarine. Underwater is where the Americans hold an edge. In nuclear submarines the US outweighs China, at the moment, by a substantial margin. The US doesn’t want Australia to lose its conventional submarine capability, especially not before it can be replaced by nuclear submarines. It doesn’t want Australia to go to the expense of having to replace its conventional fleet while moving to nuclear submarines. Defense Secretary Lloyd Austin said the US ‘will not allow Australia to have a capability gap going forward’.

Geographically, Australia is now critical for the first time since World War II. Darwin is closer to the South China Sea than it is to Melbourne. It’s interesting for me to see the facilities we built for the self-reliant defence of our approaches under the 1987 defence white paper come into our ally’s strategic focus. The army to Darwin; submarines and surface vessels to HMAS Stirling; the US Air Force to use the bare bases Scherger, Curtin and Learmonth in northern Australia.

The AUSMIN statement goes quite granular on this, detailing enhanced land cooperation and combined logistics alongside the existing initiatives announced in 2011.

Priority locations will be identified for rotations of US air, land and maritime capabilities, which will support ‘enhanced US force posture with associated infrastructure, including runway improvements, parking aprons, fuel infrastructure, explosive ordinance storage infrastructure, and facilities to support the workforce’. This will include Royal Australian Air Force Base Tindal, where facilities for six B-52 long-range bombers are being developed. At selected bases, land forces would include US army elements with the marines, and Japan would be ‘invited to increase its participation in force posture initiatives in Australia’.

There was much in the communiqué on enhancing Australian technological capability, particularly our guided weapons and explosive ordnance enterprise, with the US committed to maintain, repair and overhaul more priority munitions in Australia to improve stock holdings.

A picture builds of substantial changes to Australian forward-basing facilities in the maritime, air and land domains. If all this occurs quickly, Australia’s defence will look very different. This is full circle. It embeds the US in Australia. Though the American presence is rotational, adjustment in wartime would be immediate.

The statement includes a great deal about joint diplomatic activity in Southeast Asia and the South Pacific. This is Guam doctrine no more. We are not in an area of lesser significance. If not distracted elsewhere, the US now sees us as a focal point of its strategic interests.

Wong’s visit to Palau should be followed by greater Australian engagement

Australian Foreign Minister Penny Wong is leading a bipartisan delegation in the Republic of Palau, an island nation of around 18,000 people that sits just north of the equator in the western Pacific Ocean. What Palau lacks in size it makes up for in strategic importance: as the island furthest to the west in the second island chain between the United States and mainland Asia, it stands to play a critical logistical role in any military conflict that may occur in the region. Until very recently, Australia largely ignored the north Pacific. Last December, Australia opened an embassy in Palau.

Since gaining its independence in 1994, Palau has remained steadily pro-Western in orientation. It has maintained a compact of free association with the United States, which grants the US the right to prevent foreign military forces from entering Palau’s 600,000-square-kilometre exclusive economic zone. It is one of just 13 nations that recognise the democratic Republic of China (Taiwan) rather than the communist People’s Republic of China. Still, it’s no secret that Beijing has sought to pry Palau away from the US and its democratic partners. Wong’s visit is thus an important reminder that, in this increasingly contested region, every island matters.

Although it’s commendable that Wong has made it a point to personally visit Palau (as well as other Pacific island countries), to ensure China’s efforts remain futile Australia should do more than provide a photo op. Luckily, there are several areas where Australia might assist Palau, including many that stand to create new opportunities for Australian businesses and people.

For example, although Australia helped Palau obtain its first submarine fibre-optic cable and has recently helped secure the funding for a second, the island’s high-speed internet capability largely stops at the water’s edge. There remains a dearth of infrastructure within Palau’s archipelago to capitalise on the potential of these cables. If Australia committed to supporting the development of necessary infrastructure, it would help Palau create a solid backbone for economic growth. To twist an old adage: rather than just handing Palau a fish so it could eat for a day, Australia would be providing a fishing pole so Palau could fish for its future.

In addition to helping lay the groundwork for the development of new economic sectors, Australia can help Palau further develop what was, until the pandemic, its primary economic activity: international tourism. In recent years, the main source for tourists has been China, followed by Japan and Korea. The failure to see and promote Palau as a unique tourist destination is the failure to leverage one of Australia’s greatest strengths: its people. The development of people-to-people ties through activities such as leisure tourism is an ideal way to reinforce Palau’s pro-Western orientation. Australia should promote tourism to Palau by establishing a direct flight from northern Australia, providing hospitality training opportunities and providing funding specifically for upgrading tourism-related facilities and creating a relationship between tourism authorities.

Relatedly, Palau has only a single public high school and just one community college. Students typically go to the US for higher education and remain there after graduation. This leads to brain drain, depriving Palau of needed skilled labour. Australia should join Japan and Taiwan in offering scholarships to students, as well as opening up additional skills-training opportunities for working professionals, that provide first-rate experiences but require Palauans to return to their country at the end of the programs.

When these newly trained professionals return, they need to be able to succeed in opening new businesses. However, a lack of collateral often makes it difficult for Palauans to secure the capital necessary to fund the development of a business. Australia might make small-business loans or grants available to individuals who want to develop new businesses in the country, as well as foster links with business incubators in Australia so that Palauans can receive support and mentorship, and funding, to start new businesses.

Of course, even if new educational and skills-training opportunities can facilitate additional economic activity in the country, there will still be a need for access to external labour markets. Here, too, Australia can help. The government has already announced that it is expanding available visas for Pacific islanders to work in Australia. It should ensure those visas are available to Palauans as well.

There are also many areas beyond economics in which Australia could make a big impact. One is in the development of new, high-quality housing. A lack of domestic capacity and resources means that there are limited options for new housing that is energy-efficient and that can withstand a typhoon—an increasingly frequent occurrence due to climate change. Australia could provide grants to the National Housing Commission so that it can retain expert consultants who can provide advice on urban planning and sustainable development.

Palau’s lack of domestic capacity extends to other areas as well, including the island’s Foreign Investment Board (which still keeps all of its records on paper), its ability to patrol its EEZ (with only two vessels, one of which is an Australian-donated Guardian-class patrol boat) and even the ability of its government lawyers to do basic legal research (the database they use was created in the early 2000s). Australia should work with the US to provide more assistance and resources in law enforcement; for example, there are very limited human resources in the Attorney General’s Office to prosecute felonies.

Like other Pacific island countries, Palau requires assistance with climate-change mitigation (including relocating its only hospital to a less flood-prone area) and moving to renewable energy. Australia is extremely capable of helping in each of these areas, and has usefully financed a solar project.

Perhaps most importantly, though, Australia should continue to increase its participation in discussions with the US, Japan and Palau’s other allies about supporting Palau’s relatively new National Security Coordination Office, ensuring that Palau can protect itself, its people and its resources—whether on land or at sea—from those who would try to take advantage of a small country, extort or coerce a small government, or abuse the goodwill of a proud Pacific culture.

In all this, Australia stands to receive a benefit from its assistance, be it from a new tourism market for its people, new economic opportunities for its businesses, or a new place for its navy to visit and train. That’s surely better than just writing another cheque.

Taking AUSMIN to the third dimension

On 6 December, Foreign Minister Penny Wong and Defence Minister Richard Marles met with their US counterparts, Secretary of State Antony Blinken and Secretary of Defense Lloyd Austin, for the annual Australia – United States Ministerial Consultations, or AUSMIN, held this year in Washington DC.

In addition to the four principals, the Australian and US delegations included senior defence, intelligence and foreign policy officials. This tendency towards a security focus is born out of AUSMIN’s origins in the ANZUS Treaty, which established ‘a Council, consisting of [the parties’] Foreign Ministers or their Deputies, to consider matters concerning the implementation of this Treaty’. The first bilateral meeting held under the auspices of AUSMIN was in 1985, following the United States’ 1985 suspension of its security commitment to New Zealand for refusing port access to US nuclear submarines.

It was therefore interesting to see the most recent AUSMIN joint communiqué commit to ‘establishing a regular meeting between the Australian Minister for International Development and the Pacific and US Agency for International Development Administrator to support closer development cooperation throughout the Indo-Pacific region and globally’. Given the alignment in the two countries’ ‘political will and strategic visions’ for foreign aid, it makes sense to hold regular high-level dialogue between development leaders. But, recognising that development is central to the international relations and security aspirations of AUSMIN, such discussions shouldn’t remain discrete. There’s a clear case for the consultations to become 3D—that is, to elevate development alongside diplomacy and defence by including both countries’ most senior development representatives.

The joint statement identifies a litany of global and regional issues and challenges for Australia and the US to cooperate on. In the first paragraph alone, both countries commit ‘to advanc[e] a stable, rules-based international order’, ‘strengthen and reform the multilateral system … to address the climate crisis’, and ‘protect and promote human rights … and advance the rules of the road for technology, cyberspace, trade, and commerce’. Development already plays a key role in delivering on a number of these goals; aside from the obvious human security benefits of development assistance, Australia’s aid program also supports regional cyber and climate resilience, for example. But few if any of these goals fit a purely development, diplomacy or defence categorisation, and achieving them will require coordination across the policy communities—each of which brings unique capabilities, perspectives and experiences that are essential but alone inadequate.

It’s evident that each country recognises this and is working to reconfigure its foreign policy toolkit in response. In Australia there’s been a growing appreciation among senior politicians, policymakers and officials of the need to respect, resource and coordinate all the arms of statecraft in the context of a more challenging environment. Wong has stressed that ‘[f]oreign policy must work with other elements of state power to succeed’, while Marles wants to ‘marshal and integrate all arms of national power to achieve Australia’s strategic objectives’.

This rhetoric is slowly being translated into reality: the Department of Foreign Affairs and Trade’s Office of the Pacific was established in 2019 with a mandate ‘to enhance whole-of-government coordination and to drive implementation of [Australia’s] regional activities’, and the terms of reference for Australia’s new international development policy declare that it ‘will be whole-of-government and outline the use of Official Development Assistance (ODA) and non-ODA to advance a peaceful, stable, and prosperous Indo-Pacific, alongside Australia’s diplomatic, economic, defence, and security engagement’.

The US has similarly honed in on diplomacy and development as key assets that complement and work in concert with defence; the US Global Fragility Act , for example, emphasises the shaping role each can play to help prevent conflict and instability and reduce the need for a defence response. This dynamic was pithily captured in 2013 by then–defence secretary Jim Mattis: ‘If you don’t fund the State Department fully, then I need to buy more ammunition ultimately.’

The Biden administration’s 2022 national security strategy is explicit in saying it ‘encompasses all elements of national power—diplomacy, development cooperation, industrial strategy, economic statecraft, intelligence, and defense’ in pursuit of goals almost verbatim to those in the AUSMIN Joint Statement. The 2022 national defence strategy likewise outlines the concept of ‘[i]ntegrated deterrence [which] means using every tool at the Department’s disposal, in close collaboration with our counterparts across the US Government and with Allies and partners’.

There’s clearly an appetite among US and Australian policymakers for more joined-up thinking when it comes to formulating and prosecuting foreign policy, and bringing the development portfolio into AUSMIN would align with the integration agendas of both countries. Having the Australian development minister and USAID administrator in the room would be a powerful signal to their respective bureaucracies that such an approach is here to stay and to maintain momentum. As well as enhancing cooperation and coordination on shared interests and specific challenges, a 3D AUSMIN would open up opportunities to have conversations and share lessons on how to implement, operationalise and align whole-of-government statecraft more broadly.

Australia didn’t have a minister for international development when AUSMIN was established almost 40 years ago, and development has traditionally been an underdone aspect of the US–Australia alliance (as Marles recognised in July). But with aid emerging as a focus for both governments amid a more challenging strategic environment that demands smarter statecraft, now is the time to bring development into the AUSMIN fold.

Reinvigorating Australian ties with Africa

Africa’s voice is growing louder. And Australia is now listening.

Comprising more than a quarter of UN member states, African nations have a strong voice in global affairs. By 2050, a quarter of the world’s population will be African.

Australia has important economic, security, international political and multilateral interests with Africa. These matter in their own right. And they also have implications for our region. Partnerships with African countries will be essential in tackling challenges such as climate change.

This week, I am making my first visit to the continent as assistant foreign minister for discussions in Morocco, Ghana and South Africa.

My trip will be a chance to discuss our many shared interests—and look to new opportunities for engagement.

Wherever you look, Africa is looming larger in world affairs. It is growing in importance economically, due to its growing middle class and youthful demographics. It is increasingly vital strategically, as a resource-rich continent that can play a leading role in the global energy transition. Its influence is growing politically, as African voices speak out in the multilateral system.

In recent weeks, the eyes of the world were focused on Egypt for the UN Climate Change Conference COP27. This was Africa’s COP. We heard powerful speeches from African heads of state, imploring the world to act on climate change. Before that, leaders from 54 countries across the world gathered for the Commonwealth Heads of Government Meeting in Rwanda.

These international meetings in Africa brought countries together to deal with some of the major challenges of our time. They were hosted by African nations, reflecting an African continent whose capacity and influence is strong and increasing. African leaders are also prominent throughout the multilateral system, including World Trade Organization Director-General Ngozi Okonjo-Iweala, whom the government was pleased to welcome to Australia last month.

As always, our foreign policy starts with who we are. Modern Australia is connected to the diverse continent of Africa—and Australia’s diverse communities provide a strong foundation for our strengthening ties with African nations. Our warm people-to-people and community connections are the building blocks for closer ties.

We now have four Australian players on our Socceroos side of proud African heritage—Garang Kuol, Awer Mabil, Thomas Deng and Keanu Baccus. These extraordinary young men have overcome enormous challenges to make it to the top of their profession. And across Australia, there are half a million Australians of African heritage who make outstanding contributions to our country—as we’re watching play out in real time, and not just at the FIFA World Cup.

With an estimated middle class of 310 million people, Africa offers a significant trade diversification opportunity for Australian businesses. Australia’s two-way trade with Africa was valued at almost $10 billion last year, led by our major trade and investment relationship with South Africa. Major Australian companies including Flight Centre, Cotton On, Telstra and Zip are active in the South African market, while major mining firms BHP, Rio Tinto and Fortescue Metals Group have operations across Africa.

Many of our shared interests are also practical. To address the global food security crisis, we must learn from each other on our approaches to land use, resource management and water management. Australia is already working with African partners on innovative and climate-resilient agriculture through the Australian Centre for International Agricultural Research. And we have responded with $10 million in funding for life-saving support to the drought and food crisis affecting the Horn of Africa.

When it comes to our security interests, it is important that we manage the risks to Australians by building our understanding and strengthening our partnerships with African nations that are battling terrorist groups and violent extremism.

We must also look to the future. A wave of African entrepreneurs is driving innovation in the information technology sector, growing tech start-up funding and investment. The emergence of Nigeria, South Africa, Kenya and Egypt as major start-up hubs will provide opportunities for Australian businesses in new areas. Australia is linked to East Africa through the Indian Ocean, and the blue economy also offers significant opportunities. The African Continental Free Trade Area agreement will help to unlock future economic growth for countries across Africa and eventually allow Australian exporters to access Africa as a single market.

Australia will work with partners on this important continent in pursuit of a world that is stable, peaceful, prosperous and respectful of sovereignty, all underpinned by our strong people-to-people links as a diverse, multicultural nation. Our shared interests are clear and will only become stronger in the decades ahead.

It’s time to reinvigorate our ties with Africa.

Australia and its partners must do more to avoid dependence on China for rare earths

The global markets for rare-earth elements and critical minerals are shaping to be the next economic hot zone for the Chinese Communist Party—and for Australia’s security.

Japan recognised the economic vulnerability created by China’s near monopolistic control of these markets more than a decade ago when the CCP restricted Japan’s access to rare earths during a dispute between two countries over the Senkaku Islands.

In contrast, awareness is only now gathering pace in Australia, the US, Canada and other like-minded nations. The challenge ahead for these countries is to work together to create secure supply and value chains by supporting investment, building infrastructure and helping the sector to identify and lock in customers.

Already, Beijing appears to have recognised that the tentative steps other countries are taking could unravel its coercive power in the sector. In a breathtaking moment of hypocrisy, Chinese Foreign Ministry spokesperson Zhao Lijian said last month: ‘No one should use the economy as a political tool or weapon, destabilise the global industrial and supply chains or punch the existing world economic system.’

Even before Xi Jinping came to power, Chinese companies recognised the strategic and economic importance of rare earths and critical minerals. Low labour costs, indifference to the environmental impacts of mineral processing, and the rest of the world dropping the ball while focusing on other issues allowed Beijing to achieve global dominance of these markets, with almost 80% control of rare earths and up to 94% of other critical minerals like magnesium. Beijing’s increased state control of Chinese companies has further armed it with a suite of coercive economic levers.

Japan has led the way in responding to this market control, including by investing in Australian rare-earth company Lynas, which should provide confidence in an alternative, resilient supply chain.

Better late than never, the rest of us are catching up. In February, Washington announced actions to bolster the supply chain for rare earths and other critical minerals to reduce dependence on China. This was followed by US government investments in onshore processing of heavy rare earths.

In June, Lynas signed a US$120 million contract with the US Department of Defense to build a commercial facility in Texas for separating heavy rare earths.

Canada has also begun addressing the issue, announcing last month that any foreign state-owned enterprise looking to purchase Canadian assets in the sector could be subject to a comprehensive review to ensure the purchase is not ‘injurious to national security’. This effective national interest test reverses the default towards investment and short-term company profit and instead prioritises Canada’s security and sovereignty.

And by ordering divestiture by foreign investors in three Canadian critical mineral companies, Prime Minister Justin Trudeau’s government has made it clear that this is a new economic security approach, not a rhetorical warning.

In Australia, former PM Scott Morrison’s government set some foundations for growing Australia’s critical minerals sector and expanding downstream processing, and followed up with a $1.25 billion loan through the Critical Minerals Facility to Australian company Iluka Resources to set up the country’s first integrated rare-earths refinery, moving Australia up the sector’s value chain.

Last month, at a conference co-hosted by ASPI and the Australian National University, Resources Minister Madeleine King vowed to ‘make the most of the natural endowment we have of these resources so that we can provide an alternative source of them from China’.

The $50 million in grants that King announced in September to help Australia become a ‘global supplier’ of rare earths is a positive move, though the news that Australian ‘rare earths aspirant’ VHM Limited plans to sell 60% of its product to Chinese state-owned company Shenghe is a setback to plans to achieve strategic independence in rare earths.

Last week, the Albanese government announced it is considering ways to limit China’s investment and influence in Australia’s critical-minerals industry.

And there are opportunities well beyond Australia, Canada, the US and Japan. While the German government continues to find ways to misjudge the reality of the Russian and Chinese regimes, even Chancellor Olaf Scholz ahead of his ill-considered trade visit to Beijing said that ‘where risky dependencies have developed—for important raw materials, some rare earths or certain cutting-edge technologies, for example—our businesses are now rightly putting their supply chains on a broader footing. And we are supporting them in this, for example with new raw material partnerships.’ Australia must not miss this opportunity.

It’s a positive sign that so many like-minded countries, including Australia, are not just identifying that there’s a problem but are willing to take action. Sovereign resilience is beyond the reach of any one country. Now is the time for ‘minilateralism’ to take centre stage. Australia has an opportunity to provide the kind of leadership that will see Japan, Canada, the US and others create new mines, new midstream processing and new manufacturing of rare earths and critical minerals. These countries beginning the journey together will increase confidence of others, particularly in our near region, to join.

For years, the CCP has acted outside the market to maintain its level of control of the sector. Piecemeal efforts pose little trouble to Beijing, but a growing sense of open, liberal societies working together has it worried, which is why it is doing what it can to stifle collective action.

Some observers will continue to argue that governments must stay out of the free market. But this merely means that governments like Australia’s stay out while the Chinese and Russian regimes consolidate control.

Market forces won’t, on their own, provide economic resilience and a secure supply chain. Collectively, we can provide a viable, competitive alternative market that offers products through supply chains that are secure from domestic policy disruptions and economic coercion.

Without action, there will be no choices, no alternatives and no free market. In choosing not to act, Australia would effectively be choosing to become as dependent on Beijing for rare earths as Europe has been on Moscow for energy. The choice is still ours.

Australia the ‘pot of gold at the end of the rainbow’ in new space race

One of America’s top space officials says Australia is ‘prime country’ as the strategic competition for space heats up.

In Australia for a range of talks, including a dialogue held by ASPI, US Space Force director of staff Lieutenant-General Nina Armagno said that Australia’s strategic geography was a great asset when it comes to the sites needed for global space domain awareness and that northern Australia’s proximity to the equator could also allow for efficient launches into orbit.

‘Australia is sitting on a pot of gold at the end of the rainbow for our common national security interests,’ she told a briefing to media alongside US Space Command’s Lieutenant-General John E. Shaw.

‘This is prime country for space domain awareness,’ she said, referring to the logging and tracking of objects orbiting the earth, ranging from small pieces of potentially dangerous debris to vital satellites.

Shaw added that space domain awareness was the biggest immediate challenge facing the US and its allies in space—and one where Australia’s contribution is vital.

‘That, frankly, is our number one challenge at US Space Command … You have to understand what’s happening in the domain first, then you can take actions to protect and defend and optimise capabilities,’ Shaw said.

Key to achieving that awareness is having as broad a network of sensors as possible around the globe, which is where Australia comes in.

‘[Space] doesn’t really play favourites between the northern hemisphere and the southern hemisphere, so if you want to understand what’s going on in space, you want to have sensors in as diverse locations as possible on the planet.’

Two major parts of a shared US–Australia space capability centred on surveillance and tracking of objects in space are now up and running near Exmouth in Western Australia. One is a C-band radar that was based in Antigua and has been relocated to WA, and the other is the Space Surveillance Telescope, originally developed by the US Defense Advanced Research Projects Agency. The telescope is run as a joint facility and recently achieved its initial operating capability.

Both Armagno and Shaw emphasised that while Australia and the US have been working together on space since the Apollo program of the 1960s and more recent projects have roots going back years, there’s enormous scope for expanding the relationship to new areas.

‘Military to military is the partnership has been going on for decades. I think there’s tons of opportunity to partner commercially as well … The environment is ripe for investment in the space economy,’ Armagno said.

The space force general expanded on her comments in a podcast interview with ASPI’s Bec Shrimpton, saying Australia is a ‘burgeoning spacefaring nation, and there is tons of talent here and capability … There’s almost no limit to what we can do.’

The ramping up of Australian, US and other allied space capabilities is motivated by the need to create resilient, defendable space systems that can stand up to possible attack.

As society’s dependence on space has grown for everything from navigation to communications, so has that of our militaries.

‘It’s just how modern warfare in the 21st century works; it relies on space. Our potential adversaries have noticed this and it should not surprise us that there are now threats against those space capabilities,’ Shaw said.

‘So the question is, how do we approach that? And I think we do it the way we’ve always been successful as allies: we work it together and we’re stronger together. And the more that we can cooperate, not only operationally, but also in the development of capabilities, development of policies, the development of norms of behaviour collectively, it’s very clear to me that that’s how we address these threats and deter those threats from ever being realised.’

Conflict in space could range from the use of reversible effects like jamming or dazzling of satellite communications to cyberattacks on the ground-based architecture that supports space operations and even the direct destruction of space assets.

Australia recently joined a multilateral moratorium on destructive anti-satellite missile testing announced in the wake of a test last year by Russia that created a dangerous cloud of space debris that’s now being tracked. China and India have tested purpose-built anti-satellite weapons, while the US used a modified surface-to-air missile to destroy a satellite in 2008 (partly in response to China’s 2007 test). On the non-kinetic end of the spectrum, the war in Ukraine has already seen a major attack on US satellite communications firm Viasat.

‘So we are seeing examples of the kinds of threats that we know exist. They’re being employed by Russia,’ Armagno said.

Shaw added that China had ‘very swiftly’ advanced its space capabilities from just a few satellites 20 years ago to a fleet now numbering in the hundreds.

‘If you were to look at a number of different metrics, they’ve advanced very, very quickly,’ he said.

There has been a broader recognition that the old ways of building expensive, large and vulnerable platforms in space has to change in response to the increasing range of threats.

Armagno said that also involves disaggregating and diversifying space assets in ways that complicate an adversary’s plans to disrupt those capabilities. That could mean using smaller, cheaper satellites whose technology can be refreshed more quickly.

Part of an expansion of Australia’s own space capabilities could be focused on launches of smaller satellites on shorter timeframes than traditional, big-budget rocket missions.

‘In our collective ally discussion, we realise there’s a need for responsive launch—for launch to be more responsive than it historically has been, so there may be opportunities for partnering there as well,’ Shaw said.

As with space surveillance, Australia’s geography could be an advantage in this effort too.

‘It’s always most energy efficient to launch near the equator,’ Armagno said.

Australia’s growing space industry will almost certainly welcome any moves to expand US–Australia launch collaboration, especially after a NASA rocket blasted off from the Northern Territory in June.

‘With a little help from my friends’: capitalising on opportunity at AUSMIN 2022

As Australia’s foreign and defence ministers and the US secretaries of state and defence prepare to meet for the annual AUSMIN consultations, ASPI has today released a collection of essays exploring the policy context and recommending Australian priorities for the talks. This is the introduction to the volume.

While AUSMIN 2022 will no doubt discuss global issues, the consultations these days are first and foremost about the Indo-Pacific. This continues a steady shift in recent years away from counterterrorism and the Middle East, and towards traditional defence, cyber threats, critical technologies, foreign interference and hybrid warfare, as Australia reset its security policy to focus on China and the US began its uneven pivot to Asia.

In the past decade, the reality of specific threats posed by Beijing has punctured the blissful optimism that prevailed in both countries. The task now ahead of the AUSMIN principals is to devise ways to settle into a lengthy period of what Foreign Minister Penny Wong calls ‘stabilised relations’ with China. The alliance’s effectiveness will be tested by how it transitions from the failed policy of engagement for engagement’s sake, and the more recent necessity of countering malign activity, to a cohesive, long-term strategy of engagement with due diligence for national and regional security, and sovereignty.

In a global threat environment so complex and overlapping, Australia once again has its work cut out to ensure that the US maintains a clear-eyed focus on the Indo-Pacific and doesn’t view China or the region as longer term issues to which it can return at a later date. Since last year’s AUSMIN, Russia has invaded Ukraine (no end to that war is in sight), and tensions have risen in the Middle East through developments relating to both Iran and Saudi Arabia. Cybersecurity has gone mainstream: there have been multiple state and non-state intrusions stealing and revealing the personal data of citizens. And the threat of climate change is being properly recognised as an international security issue.

The rise in tensions across the Taiwan Strait, underscoring that conflict in the Indo-Pacific is a genuine possibility, makes US lethargy hard to imagine. Tellingly, President Joe Biden’s statement that we’re now in ‘the decisive decade’ can be understood to refer to competition with Beijing. Nonetheless, US leadership will be needed to counter multiple threats simultaneously over a long period. As an ally that doesn’t expect propping up but does a fair share of heavy lifting, Australia is well placed to encourage Washington to focus that leadership on Indo-Pacific strategic competition. The outcomes of the defence strategic review and the AUKUS pathway decision should fortify Australia’s influence on US thinking and decision-making.

The objective of long-term, stabilised relations with Beijing has a solid basis on the shared Australian and US principle of ‘cooperate where we can and counter where we must’. At least initially, the cooperation aspiration will be mainly rhetorical, as there are few areas in which genuine trust is strong enough. But US and Australian commitment to do so where possible will strengthen our ability to counter Beijing’s malicious behaviour from a position of moral high ground, which is so vital for the global narrative. This cooperation requires foreign and defence policies to work hand in hand, but not to be merged into a single strategy that either overmilitarises foreign policy or underplays the need for hard power to strengthen deterrence. As Deputy Prime Minister and Defence Minister Richard Marles said recently, ‘Improving our national security isn’t provocation; it’s prudence.’

The overall assessment of this ASPI compendium is that AUSMIN 2022 has the chance to forge a realistic but positive shared agenda for the Indo-Pacific region. This should involve a China strategy that will address the dual objectives of improving US and Australian national security and building support from a nervous region by presenting positive initiatives that focus on other countries’ priorities, such as climate action and economic development. While it might sound counterintuitive, progress on the second will give Australia and the US more room to be transparently strong on the first.

Bringing countries along on regional initiatives will increase not only their understanding of the challenges but their resilience to them and willingness to work with us to manage them. The Indo-Pacific is complex; Southeast Asian and Pacific island states understandably worry about great-power rivalry and rising tensions, but are even more anxious about the prospect of American disengagement. Investment in the Indo-Pacific driven by a positive vision will help persuade regional countries that US commitment is long term and will survive future presidential elections.

There’s no further scope for delay. With the strategic environment shifting faster than observers predicted, AUSMIN should yield a joint commitment to making 2023 a decisive year for strengthening the alliance’s collective defence and security, and for increasing the region’s collective resilience. AUSMIN should commit the alliance to shaping the focus and future of the region through military deterrence and diplomatic influence. The path ahead is precarious, but success will be measured by nothing less than whether the alliance can live up to its responsibility of drawing on our combined military and diplomatic strength to help keep competition from tipping into conflict.

From Whitlam to Albanese: portents and echoes

A new Labor government takes office, threatened by a global recession, seeking a new start with China, and worried by war in a ‘time of entrenched geopolitical competition and stark divisions’.

A tough menu confronted Gough Whitlam’s government when it won office on 2 December 1972—leaving the Vietnam War as it swiftly exchanged diplomatic recognition with Beijing.

The 50th anniversary of the Whitlam victory on Friday offers echoes and portents for Anthony Albanese’s government, which last week marked six months in office.

For the first time since Whitlam, Australia’s defence minister is also the deputy prime minister. Indeed, the ministries held by Albanese’s leadership group make it the most internationally focused cohort at the top of an Australian government in 50 years. Labor’s Senate leader is the foreign minister, while the Senate deputy leader is the trade minister. The Coalition has a similar international orientation—opposition leader Peter Dutton is the former defence minister, while the opposition leader in the Senate is the shadow foreign minister.

The leadership line-ups speak of another time of geopolitical competition and stark divisions.

Albanese has been overseas in five of the six months he’s been prime minister. The much-travelled Whitlam would have saluted; ‘Comrade,’ he lamented ironically in 1974, the UN is creating countries ‘faster than I can visit them’.

The China story joins the two governments. Foreign Minister Penny Wong made the comparisons in delivering the 2022 Whitlam Oration and in her speech about the 50th anniversary of Australia–China diplomatic relations.

Whitlam’s embrace of China was supremely optimistic. Wong offers a cautious step-by-step prescription to ‘stabilise’ the relationship: ‘What we want to do is to continue to engage, cooperate where we can, disagree where we must, engage in the national interest, and I think what’s important is we can grow our bilateral relationship alongside upholding our national interests if both countries navigate our differences wisely.’

The Albanese government’s key talking point has moved from the three-word bumper sticker describing the problem (‘China has changed’) to the one-word prescription, ‘stabilise’.

In defence, the Albanese government pushes to make Australia’s military fit for purpose, fitted with kit to meet the purposes we’re likely to face in ‘a less safe and less stable world’.

The defence strategic review, due to report in March, faces big tasks, but it’s an echo in the minor key of defence’s ‘massive upheaval’ under Whitlam. Five departments (Defence, Army, Navy, Air and Supply) were merged into one; three services were brought into one Australian Defence Force; and the ‘diarchy’ was born, making the defence secretary and the ADF chief jointly responsible to the minister.

Whitlam delivered Australia strategic benefits that are still central today. He held on to the US alliance even as he battled Washington. He helped give birth to an understanding that Australia could defend itself, while proclaiming that Australia should find security in Asia, not seek security from Asia.

The Albanese government has embraced the alliance, while Whitlam’s alliance commitment was defined by the right to disagree (the US alliance wasn’t the ‘be all and end all’ of Australian foreign policy, Gough quipped). Whitlam’s differences with Richard Nixon’s administration are recorded in James Curran’s Unholy fury: Whitlam and Nixon at war; Curran says it was the closest the alliance has come to destruction.

Whitlam’s focus on Southeast Asia meant Australia became ASEAN’s first dialogue partner. But Whitlam’s effort in his first days in office to create an Asia–Pacific forum was quickly killed off by Indonesia—an early demonstration of the veto ASEAN could wield over regional initiatives from Canberra. Today, Wong says ASEAN is the ‘foundation’ of the effort to achieve ‘strategic equilibrium’ in the Indo-Pacific.

The Albanese government draws nourishment from Whitlam ideas while avoiding his ‘crash through or crash’ style. The US ambassador to Canberra, Marshall Green, called Whitlam a ‘whirling dervish’. In its rush, the Whitlam government was derided as being in office for a good time not a long time. Albanese aims to get a longer stretch in power, pointing to the model of Bob Hawke’s government.

One of the quiet tropes of the Hawke government in its early days was to size up a problem by asking: ‘What would Gough Whitlam have done?’ Then do the opposite. A quiet trope of the Albanese government is to ask, ‘What would Kevin Rudd have done?’ Then do the opposite.

Albo embraces Rudd substance while carefully avoiding the frantic style. One aim is to avoid having everyone in the prime minister’s orbit suffering permanent sleep debt.

During Whitlam’s time, the Canberra bureaucracy united in admiring his ambition while deploring the government’s internal ‘chaos’. The public service had a similar view of Rudd’s government, although the word for its internal workings was ‘dysfunctional’.

Still with the scars of those years, Albanese knows what he wants to avoid as well as what he wants. Six months in, the early public service judgement is ‘orderly’ and ‘disciplined’. The press gallery sees something similar in the relatively calm workings of parliament.

No matter how calm and disciplined you are, a dumper wave can still smash you.

Labor knows Whitlam’s three years in power were bedevilled by the slowing world economy, just as Jim Scullin’s Labor government (1929–1931) was hit by the times—taking office two days after the Wall Street crash, to be smashed by the Great Depression and party splits.

A looming global recession threatens to revisit the three-year hoodoo on Albanese. In the previous two decades, Australia decoupled from America’s economic woes. China lifted Australia over US economic crashes. The scenario may play differently this time if the US tips into recession.

The rhymes of history darken the dreams of the Albanese government.

Cementing Australia–Japan ties: Japan’s National Institute for Defense Studies marks 70 years

This year witnessed another milestone in the Australia–Japan ‘special strategic partnership’ as prime ministers Anthony Albanese and Fumio Kishida met in Perth on 22 October to issue a new joint declaration on security cooperation. This update of the two countries’ foundational 2007 declaration further cements their strategic collaboration in the face of a deteriorating regional security landscape in the Indo-Pacific.

Coincidentally, 2022 is also the 70th anniversary of the National Institute for Defense Studies (NIDS), a think tank in Japan that serves as an important strategic dialogue partner for Australia as bilateral ties continue to deepen and expand. It’s worthwhile taking this anniversary as an opportunity to familiarise readers with the remit and activities of Japan’s only national research and educational institute concerned with security to showcase their relevance to the strategic community in Australia.

Located within the Ministry of Defense compound in the Ichigaya district of central Tokyo, NIDS conducts research and educational activities related to security, strategic and defence affairs, with an in-house staff of experts numbering around 90 researchers, under the direction of its president, Masahiro Kawasaki. It is divided into departments for policy studies, security studies and regional studies. It also houses the Center for Military History, a collection of around 167,000 volumes of official documents relating to the former Japanese Army and Navy since the Meiji period, with a reading room allowing access by the public.

NIDS carries out extensive research activities and publishes its findings (in English and Japanese) across a variety of venues. Most prominent among these are its annual East Asian Strategic Review, which complies analysis of key strategic events and trends and serves as a valuable resource for anyone with a serious interest in contemporary security and defence affairs. Shorter publications of interest to the strategic community in Australia and elsewhere include the in-house journal Security and Strategy and NIDS commentaries, as well as a dedicated YouTube channel, with more than three million subscribers.

Given widespread concern over the assertive strategic posture China has assumed in the region, NIDS’s annual China Security Report is also an invaluable resource for China watchers, providing a digest and analysis of the latest developments in Chinese security policy. With contributions by NIDS experts and renowned international contributors, the reports cover a variety of important topics, including China–Taiwan relations, US–China relations, the sea and land aspects of China’s Belt and Road Initiative, and the Chinese military’s activities in new security domains and joint operations. China’s Ministry of National Defense has taken note of the report.

Russia’s war on Ukraine has not escaped attention in Japan and is credited by many as galvanising public opinion behind government plans to further expand the country’s defence capabilities. NIDS has played an important role in contributing to domestic debates on the lessons of the Ukraine war through the release of a special report examining the war from the multiple perspectives of Australia, Russia, the United States, China and Southeast Asia. The report attracted significant attention and raised the visibility of NIDS as an institution domestically.

NIDS also plays a vital role in training future national security leaders by offering courses for senior officers of the Ministry of Defense and the Japan Self Defense Forces. Trainees of NIDS include officers posted to embassies abroad, including Australia, to serve as military attachés. NIDS also provides briefings for Japan’s national security secretariat and members of the Diet. Its international exchange department hosts a roster of workshops and symposia, such as the NIDS International Symposium on Security Affairs, and welcomes overseas visitors who come to interact with local experts. NIDS also has a policy simulation division that conducts training for the Ministry of Defense and the Self-Defense Forces and for projects with ASEAN countries through Japan’s ‘Vientiane Vision’ for defence cooperation.

As Australia–Japan security cooperation evolves, NIDS is deepening its engagement with the Australian strategic community, and NIDS’s educational programs have hosted senior officers from the Australian Defence College. NIDS is also promoting personnel exchanges with overseas think tanks such as ASPI (including both authors of this post). Such exchanges will make a significant contribution to creating a shared strategic awareness of the Australia–Japan relationship. A decade ago, NIDS and the Australian National University published a joint study on Australia–Japan security cooperation. Its recommendations that Australia and Japan translate ‘talk’ into ‘action’ appear to have been borne out by subsequent augmentation of the bilateral relationship.

With Australia and Japan so closely aligned in their strategic perceptions of the risks to peace and stability in the Indo-Pacific brought about by the actions of China, North Korea and Russia, enhanced interaction between organisations such as NIDS and ASPI further cements bilateral ties between the strategic communities that are essential to deepening our understanding of the scope and nature that the special strategic partnership is assuming and the challenges it faces. Every channel of communication and consultation serves to layer and reinforce the close relationship that has been painstakingly built to date.

With Tokyo expected to release three major security policy documents at the end of this year, including the national defence program guidelines, the midterm defence program and, most importantly, a new national security strategy, following close on the heels of the US version, attention in in Australia is firmly focused on Japan. NIDS will continue to play a major role in communicating developments in Japanese and regional security affairs to an international audience in Australia and beyond based on its 70-year track record.