Tag Archive for: New Zealand

Remembering Long Tan: Australian army operations in South Vietnam 1966–1971

Image courtesy of The Australian War Memorial

The 50th anniversary of Long Tan reminds most Australians that despite winning that iconic high intensity battle, the Australians and New Zealanders lost the Vietnam War. In fact, the First Australian Task Force (1ATF) fought at least 16 big battles, and through superior firepower from artillery, armor and airpower, won them all, sometimes by a narrow margin.

But most of the struggle in Phuoc Tuy province and South Vietnam was a prolonged low intensity guerrilla war. The big battles only mattered if the US and her allies had lost them, as big battle success allowed the allies to stay in the War. Enemy defeats just forced the enemy to revert to low intensity guerrilla war, which the allies had to control if they were to win.

Long Tan was significant in that it demonstrated, for the first time in South Vietnam, how quickly 1ATF units could reconfigure themselves from low intensity war into the combined arms team needed for high intensity battle. Although denied close air support by a tropical thunderstorm, D Company of 6RAR received supporting artillery fire that at times was directed accurately to within 30 metres of the Australians. The enemy could gain no relief by ‘hugging’ their foes’, and consequently suffered very heavy casualties from artillery fire, as well as from small arms.

1ATF units were to continue to demonstrate this ability throughout the war, with close coordination with air power, armor, and artillery fire support. So 1ATF could defeat the enemy when he escalated the intensity of the war through using his main force battalions.

But the enemy’s low intensity guerrilla war saw him disbanding many of his battalions down to small units of five to 10 men, to harass allied forces and wear them down over time. The US forces failed to adapt to the enemy’s change in strategy after the Tet Offensive in 1968. The enemy no longer presented large targets that could be attacked so effectively by American firepower.

1ATF units had no difficulty in reconfiguring themselves for this type of warfare, for which they had been specifically trained. The training allowed small parties of 12 to 24 men to move silently and clandestinely through the jungle in order to see enemy parties before they saw the Australians or New Zealanders. This gave them the first burst of fire, during which most casualties were inflicted. 1ATF units established early superiority over the enemy in this contest inflicting 10 times the casualties they suffered whenever they gained the first burst of fire, which they achieved in approximately 80% of contacts.

This loss ratio meant that the enemy couldn’t stop 1ATF patrols from ranging across the Province of Phuoc Tuy. Unlike the American strategy of attrition, which defined no strategic objectives beyond killing large numbers of enemy, 1ATF strategy was to disrupt the enemy system of food supply. 1ATF sent its patrols against the enemy lines of communication, and the numerous enemy bunker systems and base camps, where most of the enemy’s large food reserves were to be found. 1ATF units captured over 1800 bunker systems and base camps. The average amount of food captured per bunker system/base camp declined each year, to almost nothing by 1970.

By mid-1969, the collapse in food supplies stopped the movement of enemy main force units into Phuoc Tuy and the local guerrilla food organizations could no longer preposition food stocks along the intended route of advance for the main force units. No other operations would penetrate to the main populated areas of Phuoc Tuy until after the units of 1ATF left Vietnam in late 1971.

The collapse in food supplies forced local guerrillas to visit the local villages every few days to collect supplies. This predictable movement allowed 1ATF to set hundreds of ambushes. Local guerrillas, including the D445 Battalion, soon found that supply parties could not be infiltrated into sympathetic villages without suffering devastating losses.

Not surprisingly, the number of enemy initiated contacts throughout Phuoc Tuy collapsed, as well as the enemy’s effective mining effort. The enemy now only had a token military presence in the Province.

But the Viet Cong probably still commanded the political loyalty of thousands of villagers in Phuoc Tuy. This was a similar situation to the last years of the Malayan Emergency (1948–1958), and Confrontation in Borneo (1963–66). In Malaya, thousands of Chinese villagers still supported the Chinese Communist Party of Malaya, while 25,000 supporters of the clandestine Communist Party existed in Borneo. But British Commonwealth forces had made the enemy militarily ineffective. That increased state of security gave the Malayan and Malaysian governments the opportunity to enact social and political reforms to undermine the political appeal of the communists.

The units of 1ATF had produced the same military result in Phuoc Tuy as in Malaya and Borneo. But this was nothing when measured against the mishandling of the war by the US Army, and the antipathy of the South Vietnamese Government towards social and political reform. The struggle for control of Phuoc Tuy remains an interesting footnote to a very large war, as does the Battle of Long Tan. Winning it allowed 1ATF to stay in the war in Phuoc Tuy and it made the enemy very cautious over 1ATF’s support fire in future battles.

But Long Tan contributed little else to the struggle that continued in Phuoc Tuy. The security success achieved by 1ATF was secured by the counter insurgency campaign it conducted relentlessly between 1966 and 1971.

A New Zealand wolf in sheep’s clothing

It’s funny how the same document can be perceived so differently. In his demolition job on New Zealand’s latest Defence White Paper, Peter Jennings sees Wellington plumbing ‘new depths of vacuity’ in its ‘desperation to say nothing offensive to outsiders’. This includes, he asserts, a reluctance ‘to say that Chinese assertiveness is undermining security’ in the South China Sea.

But those aware of Wellington’s increasing willingness to comment on South China Sea matters will see in the White Paper a formalization of positions that have already complicated the Key government’s relationship with Beijing. Those positions include a statement designed specifically for China regarding the international tribunal case launched by the Philippines:

‘New Zealand supports the rights of states to seek recourse to international dispute settlement…It is important that all states respect the final outcomes of such processes.’

Nobody in their right mind would expect New Zealand to have matched the Australian White Paper’s depiction of China as a serial challenger to international rules in Asia (which I explore elsewhere). And Wellington’s treatment of China as an ‘important strategic partner’ has a higher profile in its White Paper.

But Beijing, Washington and Canberra will have noticed New Zealand’s enthusiastic reference to Japan as a country ‘with common democratic values and a shared commitment to maintaining regional peace and security’ and the endorsement of ‘Japan’s recent moves to make a more proactive contribution to international security’.

Similarly, while Peter detects ‘no expression of Wellington’s willingness to exercise freedom of navigation or overflight rights’ in the South China Sea, a careful reader will spot the White Paper’s assertion that New Zealand’s Defence Force ‘makes an important contribution to international efforts towards freedom of navigation’ including ‘maritime surveillance in the South Pacific and South East Asia’. Match that with recent comments by Defence Minister Gerry Brownlee about the role of New Zealand’s P3 Orions and Wellington isn’t keeping as quiet on those matters as Peter wants to make us think.

I also wonder if Peter has misread New Zealand’s strengthened focus on Antarctica and the southern oceans ‘as a useful secondary task, but nothing more than that.’ The reader of a very thoughtful piece by David Capie might conclude that Antarctica + New Zealand’s vast EEZ + the South Pacific could be just the combination to cement cross-partisan political support for significant defence investment. After all, the report from the public submission process reveals particular concern ‘about New Zealand’s ability to protect and monitor its vast Exclusive Economic Zone, and other strategic areas of interest like the Ross Dependency.’

That takes us to capabilities. Peter is on firmer ground in asking for more specifics on what NZ$20 billion of capital investment will purchase New Zealand. Like him, I’m very keen to see what the forthcoming Defence Capability Plan says (and what it doesn’t say). But the big point is that this money buys New Zealand planners some flexibility. It was big news at the end of 2013, as I explained over two years ago in these pages, when the Key government injected extra money into defence as part of its Mid-Term Review. This capital commitment is even bigger news still.

What the promise of extra cash doesn’t buy New Zealand is extra time. The White Paper notes that the Ministry of Defence has been expanded to ‘deliver’ on the replacements for the Hercules, the Orions and the frigates. And as I have argued in a New Zealand newspaper, by the time the next White Paper is out in five or six years time, the decision points on at least one of these major capabilities will have passed.

But even here things aren’t as bleak as Peter’s cherry-picked quotations suggest. As for airlift, the most urgent priority, the Key government is giving the impression it wants to look at options with greater capacity and range than the present combination of the C130s and 757s allows. On surveillance, the White Paper does more than Peter claims. Comments on the current upgrading of the Orions, including for ‘underwater surveillance, reconnaissance and intelligence’, (the first of these words, especially telling), are clearly intended by the White Paper’s drafters as a sign of further things to come.

That leaves the frigates as the third and last of the major replacements. There is a certain vagueness in the statement that ‘Work on options for the replacement of the frigates will begin well before they reach the end of their service life in the 2020s’. To what extent that might mean New Zealand’s involvement in Australia’s future frigates will depend partly on whether the latter are of a size and expense that works for Wellington.

But having such a capability in general terms is not optional for the Key Government. The White Paper establishes as a requirement for the defence force ‘naval combat and air-surveillance capabilities to secure sea lines of communication, conduct counter-piracy and sea control operations within a coalition’. And it connects these capabilities to New Zealand’s requirement to meet its ‘commitment to Australia’ and ‘make a credible contribution in support of peace and security in the Asia-Pacific region’.

How future New Zealand governments reconcile this wider ambition well beyond the South Pacific with a clearer local focus remains to be seen. That tension will deserve continuing attention. But the big news for Australia is that its neighbour across the Tasman is more ambitious about its defence force than it has been for several decades. There’s a wolf in that sheep’s clothing.

Australia and New Zealand: ASEAN Community Partners (part 2)

Southeast Asia is feeling the pressure from Asia’s big beasts.

ASEAN, as a middle-power grouping, might be glad of a bit of extra middle-power heft from the likes of Australia and New Zealand.

The strategic case for ASEAN taking its partnership with Australia and New Zealand to higher levels was one element of my discussion with the former ASEAN Secretary-General, Ong Keng Yong.

The previous post reported Ong’s thoughts on my argument for Australia and New Zealand to become members of ASEAN.

A new ASEAN status for Australia and New Zealand, he says, would offer geopolitical benefits for ASEAN that might outweigh the standing geographic veto over ASEAN membership for anyone outside Southeast Asia.

Ong: Right now the ASEAN countries as a group, increasingly we can feel we are being squeezed between China, Japan and India. One thing good about the Americans is that they are so benign as a big power, vis-a-vis Southeast Asia. We never really got serious pressure from them. Once in a blue moon we got a hammering by them on human rights issues and lately, people smuggling. But overall, they come across as a very benign strategic power which we in Southeast Asia—even our friends on mainland Southeast Asia would admit it—we like having the Americans around. They bring in business, investment, a new way of looking at the world. We leave the big, big politics to them, working with the Chinese and the Indians and the Japanese.

Lately because of the South China Sea issue, it’s starkly displayed what it would be like if we, ASEAN, have to deal with this by ourselves. It is not easy. Continental Southeast Asia is very much sensitive to what the big brother [China] wants. But maritime Southeast Asia—Malaysia, Singapore, Indonesia, Philippines and Brunei—go, ‘Oh, dear!’ That’s why the stress now is on always on multilateralism and inclusive, open-ended development.

So, conceivably as our ASEAN business and trade and other relations grow with Australia and New Zealand in the next ten or 15 years, there will be more of a balance. The geography of Southeast Asia will not be just the ten, eleven Southeast Asians nations, not just ASEAN as an organisation. But with Australia and New Zealand as part of the equation. Part of, in Chinese terms, part of the equation.

Dobell: Bulking up ASEAN as the middle power grouping by bringing in a couple of more middle powers?

Ong: Yes, we are also geographically somewhere in the middle. I assume the Indian Ocean will be very much India and South Asia; northern Pacific will be China, Japan and Korea. And until now, the southern part of the Western Pacific is Australia and New Zealand. No issue. So if it goes on in this current trajectory with everybody trying to grab what they can, establish their sphere of influence. We in ASEAN will go back to our [1967] Bangkok Declaration and say, ‘Hey, we are not interested in your sphere of influence or your reshaping of the regional order.’ We just want to be ASEAN and whoever works with us. And in this respect, Australia and New Zealand will be a major factor; because we grow our trade—China, yes, we grow our trade; Japan, we grow our trade—

but in terms of the people exchange, the development of the next generation of professionals, it’s quite different. Because more Southeast Asians come to study in Australia, they spend years in Australia.

As the previous post outlined, Ong’s thinking on integrating Australia and New Zealand with ASEAN centres on the term ‘partnership’ not ‘membership.’

The former ASEAN Secretary-General dismisses my idea that Australia and New Zealand get half-in status in ASEAN by becoming Observers. Ong sees this as too compliant with ASEAN forms, while simultaneously not delivering real substance or conferring much membership status.

Instead, sidestep the opposition to anyone beyond Southeast Asia being an ASEAN member by creating a new form of quasi-membership for Australia and New Zealand. A bigger and better and more intimate Oz–Kiwi relationship with ASEAN—but what to call it?

Ong: I don’t think we ought to use the term ‘associate’—we don’t like the word ‘associate.’ We don’t like the word ‘membership’ per se, because we say it’s only ASEAN 10—and now the big debate is about Timor Leste. So I think it will be more driven by the concept of partnership, moving from Dialogue partnership to what? You’re the wordsmith—you can invent something!

Dobell: That’s why I chickened out and just took the Observer model—but supercharge it so it describes a different ASEAN relationship with Australia and New Zealand, different to what you have with Papua New Guinea and Timor Leste. Because at least Observer is an existing basis.

Ong: It’s an interesting concept. People can understand it. But I don’t know. I think it may not work that way. It may not be useful to have that existing vocabulary. Because it doesn’t project the new century relationship between Australia, New Zealand and Southeast Asia.

A little un-ASEAN, this. Ditch the existing vocabulary. Do something new. Express the 21st Century relationship with a fresh relationship category.

Australia and New Zealand need to reach for a partnership that goes well beyond dialogue to become part of ASEAN’s creation of Community.

It’s a classic ASEAN fix: give Australia and New Zealand membership rights but call it some form of super partnership.

Exercising my Ong-conferred status as wordsmith, the label I came up with would emphasise an embrace of Community equal to the embrace of ASEAN.

How do you like the sound of Australia and New Zealand as ASEAN Community Partners?

Australia and New Zealand: ASEAN Community Partners (part 1)

The flags of ASEAN nations raised in MH Thamrin Avenue, right in front of Japanese Embassy in Jakarta, during 18th ASEAN Summit, Jakarta, 8 May 2011.

A former Secretary-General of ASEAN, Ong Keng Yong, says ASEAN could create a special category of partnership just for Australia and New Zealand.

Ong says Australia and New Zealand are so important to ASEAN’s Community project that the Association could refashion its structure.

The former Singaporean diplomat thinks my design for a 10 year effort to get Australia and New Zealand half-in as ASEAN members is too constrained by the existing configuration of ASEAN relationships.

Better, he thinks, to come up with fresh forms to reflect the mutual importance of ASEAN, Australia and New Zealand.

The interview with Ong is part of a series of columns on membership of ASEAN for Australia and New Zealand.

My proposition is that Australia should aim for half-in status as a member of ASEAN by 2024—the 50th anniversary of Australia becoming ASEAN’s first national dialogue partner.

If we want it, the Kiwis will too. So it’s an Oz–Kiwi vision. The half-in step would be for Australia and New Zealand to seek the ASEAN Observer status now held by Timor Leste and Papua New Guinea.

Ong thinks the Observer idea doesn’t capture the size of the change nor of coming challenges. He says Australia, New Zealand and the Association need to think beyond the existing ASEAN arrangements.

Dialogue partner already trumps Observer status, he says. Time to create something new to step beyond the Dialogue partnership—not a sideways step to the Observer platform.

Ong: We should not look at this issue purely in the traditional way of the meaning of being a member in the regional grouping. ASEAN and Australia, we are already Dialogue partner. And during my time as ASEAN Secretary-General I have actually asked: How do we go one step further? From Dialogue partner, what is the next level cooperation of association with each other? This is something the ASEAN countries will have to deliberate.

Ong served as the Secretary-General of ASEAN from 2003 to 2007, was Singapore’s High Commissioner to Malaysia until 2014 and is now Executive Deputy Chairman of Singapore’s S.Rajaratnam School of International Studies.

He echoes the analysis of another former ASEAN Secretary-General, Rodolfo Severino, on what would be the ‘No’ case against Australia and New Zealand joining ASEAN.

As Ong summarises, the two ‘important constraints’ are ASEAN’S geographic definition of Southeast Asia and the identity and values expressed by ASEAN.

Unlike Severino, though, Ong says there are persuasive counter arguments on the need for Australia and New Zealand to get closer to the ASEAN Community.

Speaking as a Singaporean, he thinks Oz–Kiwi membership of the Association is ‘not impossible’; that reflects my view that if Australia and New Zealand got serious and started making the case, Singapore would be their strongest supporter within ASEAN. (See the ‘Yes’ case offered from a Singaporean perspective.)

Ong says ASEAN’s own interests offer many reasons to get together with Australia and New Zealand, to make the partnership more substantiative and more integrated. He says a sideways shift from Dialogue partner to Observer status as part of a half-in strategy wouldn’t deliver on more substance and greater integration:

Ong: If you look at the future in terms of trade, people to people exchanges, even politics and security—maritime security—increasingly it is almost impossible to separate Australia and New Zealand from our future. So how do we develop a so-called half-in-half-out kind of status for Australia? It should not be Observer. In our scheme of things, Dialogue partner is higher than Observer. So I think we need to study this. And in the last few years Australia’s relations with individual ASEAN countries have become even more intensified and solidified. So we can find something.

Ong says creating a new and higher form of ASEAN relationship for Australia and New Zealand would help sidestep the geographic argument about not being part of Southeast Asia.

Ong: What kind of vocabulary can we develop to bring a dialogue partner like Australia to a more elevated level which signifies we can have a more substantive connection, a more substantive integration?

The idea is to shift beyond Dialogue Partner to a higher form of partnership for Australia and New Zealand. How to describe this shift?

The descriptor would be a new category of partner-cum-member. A partner with member rights. My suggestion, based on Ong’s idea, would be for Australia and New Zealand to become ASEAN Community Partners

More on that in the next post.

Pacific Islands Forum: climate ‘consensus’ on the road to Paris

The Leaders’ Declaration on Climate Change Action,  which emerged from the Pacific Islands Forum in Port Moresby on 10 September, doesn’t provide the basis for a cohesive diplomatic strategy for Pacific Island states as they move toward the crucial UN Climate Change conference in Paris this November.

Far from presenting a clear position, the Declaration is rather an exercise in creative ambiguity aimed at papering over the fundamental differences between Australia and New Zealand on the one hand, and the Pacific Island states on the other.

This creative ambiguity allows very different claims to be made about the Declaration. The Secretary-General of the Forum Secretariat, Dame Meg Taylor, has argued that it represents a Pacific consensus, and even a position of ‘solidarity’. This assessment doesn’t sit well with Kiribati President Anote Tong’s reported view at the post-Forum press conference that the leaders had ‘agreed to disagree’ or New Zealand Prime Minister Key’s comments that ‘we’re all going to Paris; we’re all going to argue different things’.

Creative ambiguity is most in evidence on the key question of the warming threshold to be tabled as the Pacific position at the global treaty negotiations in Paris. The declared position of Pacific Island states is that global warming has to be kept under 1.5 degrees to avoid the severe impacts of sea-level rise and extreme weather events on vulnerable states.

On the surface, the Declaration’s acknowledgement ‘that an increase of 1.5 degrees Celsius would severely exacerbate the particular challenges facing the most vulnerable smaller island states of the Pacific’ looks like a commitment to press for global warming of less than 1.5 degrees, and therefore a ‘win’ for the Pacific Island states. The Forum Secretary-General, for example, argues that the Declaration ‘captures’ the Pacific leaders’ concern to support a 1.5 degree threshold.

However, this isn’t the case. While there’s acknowledgement that warming of more than 1.5 degrees would have serious implications for smaller island states, the opaque language of the subsequent clause urges that ‘all effort be made to stay within the global temperature goal, as noted by the Conference of Parties to the UNFCCC in its decision of 1/CP20’  (the 2014 UN Climate Change Conference in Lima). This ‘global temperature goal’ is actually ‘1.5 or 2’; it therefore encompasses Australia and New Zealand’s commitment to a 2 degree threshold.

The ambiguity contained in this commitment has allowed several different interpretations of the Declaration’s commitment on this crucial mitigation issue. Some commentators have interpreted the Declaration as endorsing 2 degrees, presumably based on Prime Minister Abbott’s misrepresentation of the agreed global temperature goal at Lima as 2 degrees and on the knowledge that Australia and New Zealand would only sign on to 2 degrees; others have seen it as endorsing 1.5 degrees only, presumably because the simultaneous commitment to 2 degrees is hidden by the opaque textual reference to ‘decision 1/CP20’. The leaders, however, were well aware that they had signed on to a declaration, which supported 1.5 or 2, or in President Tong’s words, ‘a range of numbers’. New Zealand’s Prime Minister Key is reported as admitting that ‘the Leaders did not agree to a single and unified position’.

At the end of the day, this represents an Australian and New Zealand veto of the effort of Pacific Island states to have the Pacific Islands Forum endorse a strong climate statement for Paris.

It’s not just that Australia and New Zealand weren’t willing to shift their own emissions policies to support the Pacific Island states’ position; it’s that they have denied the Pacific Island leaders the opportunity to make an unambiguous call for a warming target of less than 1.5 degrees through the pre-eminent regional political body.

The Forum Declaration therefore doesn’t provide the basis for a solid strategy going forward to Paris. Because it holds the Pacific’s High Level Political Declaration hostage to Australian and New Zealand interests, it in fact means the Pacific Island states have been forced to bargain away an unambiguous 1.5 degree position at the regional level even before they enter the global coalition-building phase in the lead-up to the Paris conference.

Far from an early negotiation—with two OECD states being an advantage—(as argued by the Secretary-General) this decision dilutes the Pacific Island states’ positions before it leaves its home region. The Port Moresby Agreement missed the opportunity to make a clear statement on the 1.5 degree strategic objective as a basis for building coalitions with like-minded states such as the 54 African states (which have already made a clear commitment to the 1.5 threshold in the March 2015 Cairo Declaration) and the 30 fellow members of the Alliance of Small Islands States (which made a clear call for a 1.5 threshold in Bonn in August).

The absence of a clear, shared objective in the Forum Declaration doesn’t lay the foundation for a clear strategy to prepare for Paris—it’s created a repeat of the circumstances in the lead-up to the UN Climate Change Conference in Copenhagen in 2009.

At the Cairns Forum, on the eve of Copenhagen, the Pacific Islands states’ strong position was watered down to suit the interests of Australia and New Zealand, and the Pacific Island states had no choice but to work outside the Pacific Islands Forum to pursue their position.

The task of developing and prosecuting the Pacific position in the lead-up to Paris will therefore more likely fall to the alternate diplomatic system, which has grown up outside the Pacific Islands Forum since 2009, precisely to deal with this problem.

This new diplomatic system includes the Pacific Small Island Developing States (PSIDS) group at the United Nations which has all but replaced the Pacific Islands Forum group as the most effective representative of Pacific Island interests on key global issues including climate change. Unlike the Forum, PSIDS allows the group of Pacific Island state ambassadors to work collectively without Australian and New Zealand.

There’s also the Pacific Islands Development Forum (PIDF), established by Fiji three years ago. The PIDF has recently found its strength on the climate change issue. At its September 2015 PIDF meeting, which focused on climate change, leaders worked effectively on determining shared strategic objectives and agreed on the outline of key steps for pursuing them on the road to Paris. The resulting Suva Declaration on Climate Change captured the shared interests of most Pacific Island states and civil society, and will be championed by the Fiji Government in the lead-up to Paris.

For the 20 years since the Kyoto Conference, the Pacific Island states have had the development and implementation of their joint climate strategy frustrated by the totally divergent interests of Australia and New Zealand.

The commitment to a unanimous consensus in Forum declarations has effectively worked as a veto power for the two larger neighbours. Forum consensus has therefore come at the cost of sacrificing the core diplomatic objectives of the Pacific Island states, which in turn has constrained effective strategic implementation.

The NZ in ANZAC: why New Zealand matters

Shona ba shona - or shoulder by shoulder in Pashto - is how the members of the New Zealand and Australian Defence Forces have operated at Multi National Base Tarin Kot, Afghanistan.

Last month, considerable homage was paid to the Anzac legacy.

Australia has been scrupulous in acknowledging the ‘NZ’ in ANZAC at events across the country. And New Zealand is consistently ranked as the country most warmly regarded by Australians.

But the relationship is much more than about sentiment; it’s also about delivering prosperity and security for both countries, which is why both governments continue to invest heavily in it.

The intensity of ministerial engagement is one marker. In the last six months that’s included six Prime Ministerial and thirty ministerial exchanges, plus constant informal interaction by phone or SMS. It’s also evident from the issues on the agenda, from dealing with foreign fighters to advancing regional trade cooperation; encouraging development in the Pacific to aligning qualifications frameworks.

The reason for New Zealand’s investment is obvious. On almost any metric Australia matters to us more than any other partner. While China is sometimes our largest goods market, Australia remains our number one economic partner by far. In addition to $24 billion in two-way trade, Australia accounts for almost half our visitors, owns nearly all our banks and is our largest source of investment.

Australia is also our indispensable ally and security partner. The Anzac legacy is central to this, but our cooperation goes much broader and deeper. From Australian police in post-earthquake Christchurch to Kiwi firefighters battling Victoria’s bushfires, we’ve been each other’s first port of call—and the first to offer assistance.

On the world stage, where we face the same global issues and trends, our cooperation is often most evident. Our defence forces have served alongside one another in conflicts on nearly every continent, including in Afghanistan. Our cooperation in the Pacific was most recently demonstrated in the response to Cyclone Pam in Vanuatu.

We’ve both played leading roles on trade liberalisation. And our negotiating cooperation continues to serve us well in regional trade initiatives. Our agencies collaborate extensively and New Zealand is even represented in an observer capacity at Council of Australian Governments (COAG).

The question therefore is what’s in it for Australia. We think quite a lot.

Economically, we’re Australia’s sixth-largest trading partner and fifth-largest export market. More than 17,000 Australian businesses export to New Zealand compared to only 5,000 exporting to China. New Zealand is an important market for higher cost industries like manufacturing, pharmaceuticals, IT and services. More Australians travel to New Zealand than any other destination.

We’re also Australia’s third-largest investment destination, worth $81 billion in 2013. And with $30 billion invested here, we’re Australia’s ninth largest source of FDI. So the New Zealand economy underpins a lot of Australian jobs.

But we also add value outside the economic sphere.

We’re deeply connected security partners and force multipliers. Our naval vessels have been used as substitutes and supplements for Australian deployments and even patrol Australian waters; Royal New Zealand Air Force aircraft are routinely used for Australian tasks, including P3 Orions supporting Australian efforts to find MH370. Following New Zealand’s army restructure, we’ll have a brigade of similar fit and structure to Australia’s three.

Day-to-day defence cooperation is extensive. In 2014, more than 1,000 Australian Defence Force and New Zealand Defence Force personnel crossed the Tasman for work related tasks, not including exercises or ship and aircraft visits. More than 80 NZDF personnel are posted to the ADF, either embedded or training. One in four of those are instructors, demonstrating that New Zealand is also delivering value to the ADF and international students.

 So what’s the agenda going forward?

The ongoing challenge is to get better connected—bilaterally to one another but more importantly together with the rest of the world. As relatively small, open, capital importing economies, we can each boast impressive businesses but too often the lack scale required to get market share. The challenge is to put our uniquely integrated relationship to use in improving competitiveness, attracting investment and properly establishing ourselves in global value chains.

That is why we’re pushing to establish things like a single patent regulator, speeding trans-Tasman travel through innovations like SmartGate and why we’re pleased Australia is considering mutual recognition of dividend imputation—removing one of the last barriers to free capital movement.

Nor are the benefits only economic. Our joint efforts combatting illegal fishing in the Southern Ocean and training elements of the Iraqi army demonstrate how we’re working together to confront new security challenges.

Ten years ago, it would also have been hard to imagine New Zealand and Australia having consecutive terms on the UN Security Council. But our recent success shows that our distinct but complementary identities are enabling us to project our shared values in a way that significantly transcends our individual reach.

The Trans-Tasman relationship isn’t something that tends to grand visions but is the product of persistent and pragmatic effort over many years. Ensuring that our ‘project’ continues to deliver for both sides of The Ditch is the ultimate tribute to the sacrifice and mateship we commemorate on Anzac Day.

An injection of funds for the NZDF?

New Zealand 50 dollar noteOne thing New Zealand is never accused of internationally is throwing too much money around on defence. Those impressions aren’t about to be challenged any time soon, but Defence Minister Jonathan’s Coleman’s recent speech to an annual industry conference indicates that a bit more spending may be on the way.

Since the publication of the government’s 2010 Defence White Paper (PDF), the New Zealand Defence Force has been embarked on a quest to release up to NZ$400mn (A$350mn) in annual efficiencies by 2014/15, which can then be redirected to ‘front office’ activities. Most of these savings had been identified in a piece of creative writing known as the Value for Money Review (PDF). A big part of the aim was to allow financial room for upgrade (and ultimately replacement) of the three big ticket items—the two Anzac frigates, the Hercules strategic lift aircraft and the long-range maritime patrol Orion aircraft—without the government having to dig deeper into its pockets.

Read more

New Zealand and the United States: why old news is good news

Secretary of Defense Chuck Hagel is presented a jersey for the New Zealand All Blacks Rugby team by New Zealand Minister of Defense Jonathan Coleman during a joint press conference in the Pentagon in Arlington, Va., on Oct. 28, 2013. Hagel and Coleman met earlier to discuss national and regional security items of interest to both nations. DoD photo by Erin Kirk-Cuomo. (Released)

If you read some of the media coverage of this week’s meeting between US Defense Secretary Chuck Hagel and New Zealand Defence Minister Jonathan Coleman, you might have thought that the two countries have just agreed to deepen their defence relationship. This news is at least a year too late, and that deepening process is by now well under way. Even so, the Hagel–Coleman press conference reflected the level of comfort both sides have about where their military relationship has got to, and what these two leading politicians didn’t mention is as important as what they spoke about.

I use the word ‘relationship’ here very deliberately, because that’s the word both Hagel and Coleman employed in speaking to the Washington media. The two ‘A’ words, Alliance and ANZUS, didn’t make an appearance in the way Hagel and Coleman spoke about the relationship. Nor did ‘A for Australia’. That’s significant: all three countries have valuable bilateral defence relations with each other but there’s little appetite anywhere, it seems, for a real trilateral emphasis. Australia is involved in some big triangles, especially the Trilateral Strategic Dialogue (TSD) with the US and Japan, but the renewed US–New Zealand relationship isn’t being sold that way. Read more

New Zealand’s potential ‘China choice’

Official dinner at Government House in Auckland for then Chinese Vice President (now President) Xi Jinping, 17 June 2010Neither Australia nor New Zealand wants to have to choose between the United States and China in the possible option that Hugh White has envisaged so starkly. But if push comes to shove, it can’t be taken for granted that the two countries will come to precisely the same conclusion at precisely the same time.

Hugh recently spoke in Wellington outlining the arguments of his book The China Choice. The room was packed, a tribute to both his ability to stimulate and of course the subject, which is the preoccupation of this era. Moreover, Hugh is an Australian strategic scholar whose thinking has been known to embrace New Zealand—not a concern shared widely in Australia’s strategic community.

A couple of passages from studies over the last couple of years show differences between New Zealand and Australian perspectives. One is in a 2011 CSCAP-New Zealand report. ‘Projecting Our Voice: Major power relationships in Asia. The responses of regional organizations and the implications for New Zealand‘. This study was undertaken by a National Forum made up of CSCAP–NZ members. I was a participant, though not a direct contributor to the following passages, which are best quoted in full as they offer a clear explanation of the dilemma that New Zealand could face: Read more

Beware Australians bearing praise: a caution for New Zealand

On patrol in North East Bamyian Province, Afghanistan, with Kiwi Team One.It can be rather disconcerting for a New Zealand audience when they are faced with an Australian who wants to praise our defence policy. We don’t quite know whether to celebrate or to question the speaker’s rationality. But there was nothing silly in the talk Andrew Davies gave to our After the Missions symposium  in Wellington last week. And there was more to come. In praising New Zealand’s decision to have a hard look at what it needed to do in defence terms, and what it could reasonably afford, Andrew laid the foundation for a stinging attack on the gap between ends and means in Australia’s policy. An Aussie defence specialist bagging Canberra’s approach? Why that was even better.

 Dr Davies is not the only Australian analyst to have become enamoured of New Zealand’s greater willingness to live within its means. These days very few of his countryfolk bring their Greg Sheridan impersonation kits with them when they travel across the Tasman. Even Paul Dibb, who once teased that a “broken-backed” New Zealand was potentially part of Australia’s arc of instability, came round some years ago to admiring the willingness of New Zealand’s politicians to make hard but often necessary choices about what defence capabilities could afford. The appeal of this logic and the exquisite pinot noir from the same South Island where Phar Lap was born, have made New Zealand a recent place of pilgrimage for Australian analysts concerned that their country continues to live in a defence fantasyland. Read more