Asia Pacific Defense Report

First some unfinished business from the Submarine Institute of Australia conference. The Chief of Navy asks why aren’t there more positive stories about Collins submarines? The reason is quite simple: because you won’t tell us anything. This goes for the other services as well – you cannot complain about lack of coverage if you deliberately suppress the release of information. That’s something that Defence Minister Richard Marles knows well. It’s the definition of hypocrisy: say you are in favour of communicating with the Australian public and then obstruct journalists from doing their job. Some words about the new Trump administration starting to take shape and the surprisingly large amount of publicity about our current Ambassador – and former Labor PM – Kevin Rudd. Deciding who the Australian Ambassador should be is a decision for us – not anyone else. As for the eternal bonds of friendship between the US and Australia – when Trump was last President he didn’t even bother appointing an Ambassador here until the end of his term. That’s a clear indication of the importance Trump attaches to Australia. None.

Our previous analysis of the US Presidential election was wrong – and by a wide margin. Obviously there’s a huge level of anger, resentment and frustration in the American system. Donald Trump has won a bigger victory than in 2016 – and the consequences for Australia are unknown. Any Australian politician assuming it’s business as usual runs the risk of making a major mistake. What do we do if Donald Trump jacks up the cost of acquiring nuclear-powered submarines by a lot? Has anyone in Defence or the government thought through those consequences? And please don’t say it could never happen. A quick summary of SEA 3000 – and it’s between Germany and Japan. Then the Submarine Institute of Australia conference where Chief of Navy mistakenly re-read his 2023 speech and during which journalists were told they would be kicked out of the venue if they approached anyone at morning tea to say hello. The Virginia class program is in big trouble because of supply chain issues – but you will never hear that from an Australian official. Finally, Army’s campaign of deception about the performance of Black Hawk helicopters continues. Someone has to put a stop to this outrage – it’s wrong at every possible level.

We start with Defence Industry Minister Pat Conroy at the NPC last week and lots of stuff about extra missiles for the ADF. That’s all well and good – but these things are either fully imported or, at best, manufactured under license here with a few local components. There are no longer any sovereign Australian IP in weapons – we seem to have collectively given up on the idea of designing any ourselves. The latest from the mess that is AUKUS Pillar One. Then a few words about the shock cancellation of JP9102. There goes the last chance of any form of sovereign satellite communications capability – it’s back to bad old days of having to go cap in hand to the US for some bandwidth – and then being charged a fortune for it. Finally, the shortlist for SEA 3000 the General Purpose Frigates approaches – and golly gosh what an unmitigated disaster this project is.

Last week saw a bit of extra good news for Ukraine with the announcement that Australia will donate 49 M1A1 Abrams Main Battle Tanks that are being retired from service. An extra 10 Abrams will be available for spare parts, or they could be returned to a usable condition. No matter how you look at this, it’s a significant contribution because while the tanks are a bit long in the tooth they are still a formidable capability, particularly against the ageing junk that Russia is now forced to field. Also last week saw a bit of coverage of the latest US Congressional Research Service report into AUKUS Pillar One – and it identifies a number of failures in the Australian process. Related to this, we are spending billions of dollars in WA getting ready for the deployment of US and possibly UK nuclear-powered submarines with no one doing the analysis of whether we should simply increase the size of that force for the defence of Australia. Finally some words about the company Austal – how come they are all of a sudden in such a privileged position?

We start with a Canberra bubble story – but one with national implications – the strange tale of the former Chief of Staff to Defence Minister Richard Marles. The CoS of a Minister plays a vital role in the daily running of the office and has additional important duties such as liaising with the Department, other Ministers and various stakeholders. Without a competent CoS in place an office rapidly becomes dysfunctional. Then a few more words about the unfolding disaster of SEA 3000, which is coming up for some form of short listing in November. Also we are starting to receive some information about how much Australia has earned from the sale of Taipan helicopter spare parts. The answer is – probably zero. Unfortunately it looks like the Tiger Armed Reconnaissance helicopters are also being mismanaged and unless there’s an urgent change of direction they will similarly end up in landfill. They should instead be going to Ukraine and there’s a case study that needs to be read aloud to every person in Army connected with the destruction of the Taipan fleet.

There are 5 ship designers in the running for the SEA 3000 General Purpose Frigate contract – and 2 of them are from South Korea. In this episode we discuss Hanwha Ocean, based on a visit to their extremely impressive facility at Okpo near Busan on the south coast of the country. However, we could not discuss their Australian bid because the government has banned companies from speaking with the media under threat that if they do so their participation in the competition will be instantly cancelled. This is to prevent any information about how badly this project is being bungled by the RAN ever reaching the Australian public. Even with that restriction there was still plenty to talk about, including Hanwha Ocean frigates for the Korean and Thai navies. Then a few words about industry policy, where the government of South Korea is doing the Australian government’s job for it. As promised, a few words about UK nuclear submarine projects – and they are struggling so badly with their own programs it is hard to see how they will ever manage to design and build SSN AUKUS.

Why does the Australian government show so little enthusiasm for increasing the amount of aid going to Ukraine? Doing so is overwhelmingly popular with about 80% of Australians in favour. However, it looks like the government and our officials are doing just enough to tick a few boxes. At a minimum a single person with a lot of authority needs to be put in charge of the aid program – and they need to get moving. Then a media trip to a factory in the Queensland town of Maryborough that manufactures 155mm artillery shells – and all of them are purchased by the German government before finding their way to Ukraine. A Joint Venture between Australian company NIOA and Germany’s Rheinmetall Waffe Munition, it could form an essential part of a sovereign 155mm projectile capability – but again that requires a decision followed by action. Finally a few words about AUKUS and Virginia class submarines – we do the maths and figure which ones we might receive.

We return to some favourite themes: nuclear powered submarines; Taipan helicopters; and aid for Ukraine. But before that a few words about the Middle East and what looks to be a further deterioration in an already bad situation. Everyone shares blame, but it’s worth noting that major demographic changes mean that Israel is different from the country in the 1970s that many of us found inspirational. It must occur to people that there are some in Israel who don’t want peace with Hamas but will happily continue bombing Gaza until nothing remains. Equally, leaders of Hamas and Hezbollah don’t care how many of their own people die. After that, why cannot VADM Jonathon Mead – or the government - answer the simple question: what happens if the US cannot lift the production rate of Virginia class submarines to 2:33 per year.? It’s a very simple question without an answer. We conclude with updates on last year’s Taipan helicopter ditching and problems with the flow of aid to Ukraine.