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    AUSTRALIASNATIONALSECURITYA DEFENCE UPDATE 2007

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    CONTENTS

    DEFENCE UPDATE 2007 1

    PREFACE 7

    INTRODUCTION 9

    1: AUSTRALIAS STRATEgIC ENvIRONmENT 13

    THE STRATEGIC FRAMEWORK 13

    Globalisation and its security conseuences 14

    Terrorism 14

    Fragile states 15

    WMD prolieration 15

    The use o orce in the 21st century 16REGIONAL IMPACTS 17

    Territorial threats 17

    The South Pacic and East Timor 18

    The broader AsiaPacic 19

    The Middle East and Central Asia 21

    A MORE CHALLENGING STRATEGIC ENVIRONMENT 22

    SUMMARY 23

    2: AUSTRALIAS DEFENCE POLICY 25WHERE AUSTRALIA MUST LEAD 26

    WHERE AUSTRALIA SHOULD CONTRIBUTE 27

    SUMMARY 29

    3: APPLYINg AUSTRALIAS mILITARY POwER 31

    INTERNATIONAL SECURITY PARTNERSHIPS 31

    Australias role as a security leader 31

    Australias role as a security contributor 32

    The US alliance 34

    Longterm relationships 35

    WHOLEOFGOVERNMENT RESPONSES 37

    A JOINT AND INTEGRATED ORGANISATION 39

    SUMMARY 39

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    4: UPDATE ON OPERATIONS 41

    MARITIME ENFORCEMENT AND BORDER PROTECTION : OPERATION RESOLUTE 41

    EAST TIMOR/TIMORLESTE : OPERATION ASTUTE AND OPERATION TOWER 42

    SOLOMON ISLANDS : OPERATION ANODE 42

    IRAq : OPERATION CATALYST 42

    AFGHANISTAN: OPERATION SLIPPER AND OPERATION PALATE II 43

    ISRAEL/LEBANON : OPERATION PALADIN 44

    SINAI : OPERATION MAzURKA 44

    SUDAN : OPERATION AzURE 45

    SUMMARY 45

    5: UPDATE ON CAPAbILITY 49

    MARITIME 50

    LAND 51

    AIR 52

    COMMAND, CONTROL AND NETWORKING 53

    INTELLIGENCE 53

    SUPPORTING AND SUSTAINING OUR FORCES 54

    SUMMARY 54

    6: UPDATE ON PEOPLE AND RESOURCES 57

    RECRUITMENT AND RETENTION INITIATIVES 57

    RESERVES 58

    DEFENCE ACqUISITION AND INDUSTRY 58

    THE DEFENCE ESTATE 60

    INTELLIGENCE UPGRADES 62

    DEFENCE MANAGEMENT REFORM 62

    SUMMARY 64

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    AUSTRALIASNATIONALSECURITYA DEFENCE UPDATE 2007

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    PREFACE

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    PREFACE

    PREFACE

    How we deend our sovereignty, our citizens

    and our interests and our success in doing

    so shapes the uture o our nation. This, the

    third Deence Update since the White Paper o

    2000, provides an update on the Governmentseorts to meet that responsibility.

    The Update describes Australias current

    strategic outlook. We are experiencing

    signifcant change in the international security

    environment. Serious threats to stability

    continue to emerge rom the Middle East while

    in the AsiaPacifc the strategic landscape is

    shiting. Relations between the major powers

    the United States, Japan, China and India

    shape Australias security environment. At the

    same time, we are contending with instability

    in our immediate region, as well as the global

    threat o terrorism and the prolieration o

    weapons o mass destruction. This Update

    points to the increasing complexity o our

    strategic situation and it details our Deence

    policy response. Its a challenging business.

    The demands placed on Deence, and its

    consequential responsibilities and tasks, areunique.

    To meet these demands, the Government

    is building a balanced, adaptable and

    integrated Deence Force. We are responding

    to the change in the international security

    environment by making the necessary

    investments in Deence capability, including

    recruitment and retention o personnel.

    Deence is working with other agencies in

    support o a wholeogovernment national

    security response. Internationally, we work

    closely with our riends and allies to promote

    stability. And we are deepening our relationship

    with our key ally, the United States, and with

    partners in our region and globally.

    The military tasks undertaken by the men

    and women o the Australian Deence

    Force and the Department o Deence have

    increased substantially in diversity, intensity

    and tempo. Australia should be proud o the

    dedication, proessionalism and versatility

    these military and public service proessionals

    have shown in response. At the time o this

    Update, Australia has over 4,000 personnel

    engaged in counterterrorism, counter

    insurgency, stabilisation, border protection,

    and humanitarian operations in countries

    as diverse as Aghanistan, Iraq, East Timor

    and Solomon Islands. The Government is

    committed to making sure we have a Deence

    Force that is well equipped, well trained, ready

    to lead in our region and able to contribute

    to coalitions around the world wherever

    Australias people, interests and values needdeending.

    Dr Brendan Nelson, MP

    Minister or Deence

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    OUR FORCES ARE mORE ACTIvE ON OvERSEAS

    OPERATIONS THAN AT ANY TImE SINCE THE vIETNAm wAR.

    INTRODUCTION

    Australias strategic outlook remains

    challenging and dynamic. Since the last

    Deence Update, issued in December 2005,

    Australia has deployed military orces on a

    number o operations in the South Pacic and

    urther aeld. These have included sending

    Australian Deence Force (ADF) personnel to

    both Solomon Islands and to East Timor in

    May 2006 when rioting threatened stability

    in these close neighbours. As o mid2007,

    signicant Australian orces remain in both

    countries, working with police and military

    personnel rom a number o countries.

    Together with New zealand, we sent a small

    orce to restore stability in Tonga ater riots

    broke out late last year in the capital. In

    November 2006, we prepared to help evacuate

    Australians rom Fiji ater that countrys ourth

    military coup in 20 years. Deence worked

    with the Department o Foreign Aairs and

    Trade to help evacuate 5,300 Australians

    and 1,300 oreign nationals rom the confict

    in Lebanon in mid2006. The ADF also

    provided medical evacuation ater the May

    2006 earthuake in Indonesia, and ater an

    earthuake and tsunami in Solomon Islands

    in April 2007.

    In the Middle East in July 2006, Australian

    orces handed over responsibility or the

    security o Iras Al Muthanna Province to

    Irai authorities. Our orces in the south o

    Ira now provide a security overwatch roleand are helping to train the new Irai Army.

    Our ships and aircrat are doing essential

    work in the northern Gul to protect Iras oil

    installations, and our Security Detachment in

    Baghdad protects Australian Embassy sta

    and other ocials.

    In Aghanistan our Special Forces are again

    perorming dangerous operations against a

    resurgent Taliban in the south o the country.An ADF Reconstruction Task Force is working

    with orces rom the Netherlands and other

    NATO countries to rebuild basic services and

    help bring stability to this remote part o

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    Aghanistan. Good progress has been made,

    but reconstructing the economy and social

    services in Aghanistan and making the

    country sae rom the Taliban and al qaeda

    will take years.

    These activities mean that the ADF has been

    going through a very busy period. Our orces

    are more active on overseas operations

    than at any time since the Vietnam War. The

    strategic situation in Australias immediate

    region and beyond that the wider Asia

    Pacic and across the world is changing in

    important ways. Key concerns include how

    we deal with the ragile island states o the

    South Pacic and how we help East Timor and

    other near neighbours who are struggling with

    internal problems that weaken their stability.

    Terrorism is still a major threat, not just in

    the Middle East, but also in Southeast Asia.

    We have done a lot to make Australia more

    secure against the threat o terrorist attack

    but we know that terrorist groups will attack

    us at home or target our interests abroad i

    they get the opportunity. Australias interests

    are also threatened by the dangers o

    prolierating weapons o mass destruction

    (WMD), including the risk that such weapons

    might all into the hands o terrorist groups.

    There have been no developments since the

    last Deence Update that suggest that we

    ace a direct military threat either now or

    in the oreseeable uture. However, military

    orces in the AsiaPacic region are becoming

    increasingly sophisticated and Australia must

    work harder to ensure that our orces retain

    an edge in leading military capabilities.

    The 2003 Deence Update detailed a

    rebalancing o military capabilities and

    priorities to give our orces extra fexibility,

    mobility and the readiness to deal with the

    new strategic environment. In 2005, the

    Update emphasised the ability to respond

    to a wide range o eventualities, including

    conventional confict, as well as the

    importance o working with other government

    agencies such as police and aid workers. The

    2007 Update is a logical successor to these

    earlier documents and takes them urther.

    Because o the increasing complexity o the

    international security environment, Australia

    must prepare or a range o possible events,

    both close to home and urther aeld, with

    lessened orewarning o crises. In determining

    our response, the Government has careully

    assessed our national interests and how wemight best use our armed orces in pursuit

    o those interests. In particular, we recognise

    that working in partnership with allies and

    riends builds our own security, and enhances

    regional and global stability.

    The Government continues to back its

    commitment to Deence, and to ensure it

    has the capabilities and resources it needs

    to protect Australia, its people and nationalinterests. The 200708 Deence Budget

    is $22 billion which is an increase o $2.1

    billion or 10.6 per cent on the 200607

    Budget, and represents 9.3 per cent o the

    Australian Government outlays and 2 per

    cent o GDP. Across the ten years to 2017,

    the 200708 Budget delivered an additional

    $18 billion, which provides or the continued

    investment in the ADF o today and the

    immediate uture. This unding will see an

    investment in a number o capability areas

    such as the purchase and support o 24

    F/A18 Super Hornet multirole aircrat to

    ensure that Australia maintains its air combat

    capability edge during transition to the

    F35 Joint Strike Fighter. The unding will also

    improve the preparedness and sustainability

    o 18 highpriority ADF capabilities such as

    the Collins submarines, Anac ships and

    F/A18 ghter aircrat. Recruitment and

    retention, a critical issue acing the ADF, will

    also benet rom this budgetary increase.

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    SUmmARY

    Australia aces a challenging and dynamic

    environment, changing in many important

    ways. In response, the ADF has been busier

    overseas than at any time since the Vietnam

    War. The rebalancing o the ADF continues,

    and we are continuing to work with allies and

    riends to build our own security.

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    AUSTRALIAS STRATEgIC

    ENvIRONmENT

    C H A P T E R

    IN A gLObALISED wORLD, IgNORINg PRObLEmS FURTHER AFIELDONLY INvITE THESE THREATS TO COmE CLOSER TO AUSTRALIA.

    At present Australia does not ace any

    conventional military threat to our territory

    nor, on current trends, is this likely in the

    oreseeable uture. But we cannot be

    complacent. Deence must plan or a ull

    range o possibilities even i they seem

    remote right now. There are also serioussecurity challenges in our nearer region that

    reuire Australian military power to help build

    stability today. Our national interests as a

    democratic, trading and globally engaged

    country are threatened by the rise o terrorism

    and by instability in areas such as the Middle

    East. In a globalised world, ignoring problems

    urther aeld only invites these threats to

    come closer to Australia. While we all benet

    rom globalisation, a more integrated world

    and ongoing technological and demographic

    change magnies the range and number o

    potential threats and the strategic eect

    o events, including some distant ones, on

    Australias security.

    THE STRATEgIC

    FRAmEwORk

    The Deence 2000 White Paper highlighted

    two basic actors that shape Australias

    deence outlook and will continue to do so

    or years to come. They are the continuingpredominance o the United States, which

    acts as a stabilising orce in the Asia

    Pacic, and secondly, the security impact o

    globalisation. Subseuent Deence Updates

    identied terrorism, the prolieration o WMD

    and the risks arising rom ragile states

    as being immediate threats to Australian

    interests. Combined, these actors created

    a more complex strategic environment or

    Australia. Since the East Timor crisis in

    1999, we have reuently had to use the

    ADF as well as engage other elements o

    national capability, such as the police and

    other agencies, and implement economic

    and diplomatic measures, in the pursuit o

    our strategic interests.

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    gLObALISATION AND ITS

    SECURITY CONSEqUENCES

    Globalisation has provided many community,

    social and economic benets to Australia

    and other countries. Australia has gained

    economic growth, new export markets, and

    new immigrants to Australia with their skills

    and ideas as conseuences o globalisation.

    Australians today are more connected with the

    wider world than at any other time in our history,

    but the negative side o globalisation is that

    this connectedness brings potential security

    threats closer to us. Globalisation speeds up

    the impact and signicance o existing and

    new threats, shortening response times, and

    increasing uncertainty. People, money, and

    ideas now move aster around the world, not

    always or the good. While globalisation oerssignicant opportunities, it also can help the

    spread o extremist terrorism and diseases

    such as avian infuenza.

    These changes are reshaping our security

    environment. Some major global powers

    have declining ertility rates, which puts

    pressure on labour orce numbers, resources

    and budgets. In much o the developing

    world, rapid population growth is producing

    youth bulges, but their economies struggle

    to create sucient jobs to enable these

    young people to make a productive living. In

    much o the developing world, too, there is a

    massive relocation o rural people into large

    cities which lack adeuate inrastructure and

    opportunities or their growing populations.

    In some parts o the world this situation is

    contributing to a rise in support or extremist

    ideologies. As urbanisation increases, so too

    does the risk o health pandemics, a potential

    source o great harm to Australia.

    Natural events such as the 2004 Boxing

    Day tsunami or severe cyclones in the

    Pacic can cause ood, water and resource

    shortages. Such disruption may result in

    calls or Australian military intervention and

    humanitarian relie. In our region Australia

    can expect that we will oten be called upon

    to help in these circumstances.

    TERRORISm

    Violent extremist terrorism will remain

    a threat around the world or at least a

    generation, and probably longer. This war is

    very dierent rom those we have ought in

    the past. Terrorism ignores borders and has

    no rontlines. It has no capital that can be

    captured, nor government structure that can

    be compelled to surrender. It oten sets outto attack civilians, and it increasingly uses

    the openness o our societies against us.

    No terror group has the power to invade or

    take territory rom Australia. But that does

    not mean we can aord to ignore groups

    such as al qaeda or Jemaah Islamiyah (JI).

    Terrorists threaten our national interests,

    including the saety o Australian citizens,

    businesses and Australian government

    activities abroad. Terrorism can have a

    strategic eect. A particularly severe threat

    would arise i terrorists were to obtain WMD.

    It will take a sustained eort over many years

    to overcome the dangers posed by terrorists.

    Military operations against terrorism are only

    part o the story. We must undercut support

    or terrorism by promoting stable, democratic

    societies, including in those countries

    where organisations like the Taliban once

    fourished.

    IT wILL TAkE A SUSTAINED EFFORT OvER mANY YEARS TO OvERCOmE

    THE DANgERS POSED bY TERRORISTS.

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    FRAgILE STATES

    Fragile states are especially vulnerable to

    the damaging eects o transnational crime

    and insurgencies. Such states can potentiallybecome havens or criminals and terrorists

    who want to operate without being harassed

    by governments. In our immediate region, the

    cost o dealing with ragile states includes

    expensive military and police deployments

    and aid programmes designed to strengthen

    the ability o ragile states to run their own

    aairs. Our aim is to help build strong,

    cohesive, democratic states, because these

    are best placed to meet their citizens needs

    and contribute to a stable neighbourhood.

    In our region some vulnerable states are

    struggling to deliver basic services to their

    citizens because they lack the economic

    capacity, and because government systems

    are weak and oten corrupt. These are not

    easily solvable problems. Many weak states

    wait until disaster strikes beore seeking

    assistance, most oten in some orm o

    military support.

    The ripple eects o ragile states on security

    can reach around the world. The proximity

    o weak states in our region means that

    Australia must take their vulnerabilities

    seriously and work with governments and

    others to oer help. Building and restoring

    nations can take many years and will cost

    many millions o dollars to help overcome

    economic and security weaknesses, pay or

    our ADF operations, and provide policing

    and assistance to improve the uality o

    government. But these costs will be ar less

    than attempting to reconstruct small states

    that have been shattered by confict becausewe ailed to intervene at an earlier stage.

    wmD PROLIFERATION

    Unlike the Cold War, when the danger o

    nuclear warare between the superpowers was

    a realistic concern, the primary worry about

    WMD technology today is the prolieration o

    such weapons by countries like North Korea

    and Iran and to socalled nonstate groups,

    such as al qaeda. Australia criticised North

    Koreas nuclear test last year. Not only did

    ...THE PRImARY wORRY AbOUT wmD TECHNOLOgY TODAY IS THE

    PROLIFERATION OF SUCH wEAPONS bY COUNTRIES LIkE NORTH kOREA

    AND IRAN AND TO SOCALLED NONSTATE gROUPS, SUCH

    AS AL qAEDA.

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    it raise tension in a strategically vital part o

    the world, but it has made the challenge o

    nonprolieration and counterprolieration

    more urgent.

    As we noted in the 2003 Update, WMD are

    the ultimate asymmetric threat. We know that

    terrorist groups, al qaeda among them, are

    interested in buying or developing rudimentary

    WMD. Increasingly we see that military

    capabilities which were once available only to

    states are being used by terror groups and

    other nonstate actors. Nowhere is this more

    worrying than when it might involve WMD.

    Nonstate groups, particularly extremist,

    decentralised, cellular networks, are unlikely

    to be deterred rom using such weapons by

    the threat o retaliation. So Australia has an

    overriding interest to prevent the spread o

    WMD by backing arms control agreements

    and applying active countermeasures

    with our allies such as the Prolieration

    Security Initiative (PSI) where prolierationis discovered.

    THE USE OF FORCE IN THE

    21ST CENTURY

    Al qaedas attacks in the United States on

    11 September 2001 brought home the

    changing nature o how orce can be used to

    bring about political goals. The attacks on the

    World Trade Centre and the Pentagon wereunconventional warare at its most violent

    and indiscriminate worst.

    On the conventional military battleeld a orce

    like the ADF is easily superior in repower

    to nonstate opponents. We are continuing

    to improve the lethality and precision o our

    orces. Yet we are constrained in ways non

    state groups are not. Terrorist organisations

    like al qaeda have no concern about targetinginnocent civilians or about hiding their orces

    within the civilian population. The rapidly

    reducing costs o technology allow these

    groups to use technology as a orce multiplier

    and to expand their reach. For example, the

    clever use o communications technology

    is helping terrorist groups to expand their

    support base and to spread propaganda

    among their opponents. The increased

    capability o terrorists and insurgents

    against a wellarmed nation was illustrated

    during the IsraelHezbollah confict in 2006.

    The use o both civilian and conventional

    military capabilities by these groups in oteninnovative and nonconventional ways is

    particularly worrying.

    The ADF will always need to retain a ualitative

    edge in its conventional military capabilities

    a substantial challenge in itsel. But military

    orces are increasingly expected to perorm

    a variety o roles uite dierent rom ghting

    other armed orces. These can include

    stabilisation activities similar to those weare undertaking in East Timor and Solomon

    Islands, peacekeeping and peacemaking, and

    general security operations like those the ADF

    provided during the 2006 Commonwealth

    Games in Melbourne.

    The ADF increasingly will be called on to ght

    irregular opponents and must thereore be

    able to mount counterterrorism and counter

    insurgency operations, including hostagerescue tasks. Humanitarian relie missions

    are also taking on a higher priority. More

    generally, nonconventional and humanitarian

    missions will engage more military resources,

    time and eort. A credible and capable

    military remains a crucial complement to

    what some call sot power: diplomacy, aid,

    cultural ties, peopletopeople contacts,

    trade, and institution building.

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    These developments have added a new

    dimension to the roles and responsibilities

    o the ADF. But we must also remain alert to

    more conventional military dangers. Because

    o the major power dynamics in our region

    and the existence o critical fashpoints,

    there is always the possibility o strategic

    miscalculation that could lead to confict.

    Australia needs to watch these risks closely,

    because conventional confict in the Asia

    Pacic would almost certainly engage our

    national interests, and may do so with little

    warning.

    Closer to home in Southeast Asia, the

    capabilities o military orces are increasing

    as states modernise their euipment and

    improve training. We expect that the ocus

    o regional countries will continue to be on

    using their military orces to build national

    cohesion and domestic security. Our aim is

    to work with our riends and neighbours to

    promote regional security. One way we do this

    is by cooperating with the deence orces o

    many Southeast Asian states. Strong, stable

    military orces in our region that work together

    will enhance rather than weaken our security.

    REgIONAL ImPACTS

    TERRITORIAL THREATS

    As in 2000, Australia does not ace any

    direct threat to its territory. But althougha conventional attack on Australia seems

    very remote, we must be able to deend

    ourselves and to be seen by riends and

    neighbours alike as taking this responsibility

    seriously. We can hardly expect allies to help

    us i we dont provide or our own security.

    The deence o Australia thereore remains

    THE ADF INCREASINgLY wILL bE CALLED ON TO FIgHT IRREgULAR

    OPPONENTS...bUT wE mUST ALSO REmAIN ALERT TO mORE

    CONvENTIONAL mILITARY DANgERS.

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    a undamental task. While our physical

    geography and maritime approaches give us

    a natural strategic depth, we are aced with

    much more immediate security challenges,

    including nontraditional threats that wont

    be deterred by our geography. These include

    extremist terrorists, backed by global networks

    o supporters; spillover eects rom weak

    and ailed states; WMD prolieration; and

    potentially, the conseuences o health

    pandemics.

    THE SOUTH PACIFIC AND

    EAST TImOR

    Many o the South Pacic island states

    and East Timor continue to be scarred by

    political, social and economic instability. For

    many South Pacic states, weak governance,

    crime and social instability are a real threat

    to economic development. Papua New

    Guineas (PNG) problems are compounded

    by its relatively large size around 5.9

    million people growing at around 2.7 per

    cent a year. Major eorts are needed to

    improve and rebuild inrastructure, law and

    order, education and health care i the PNG

    government is to meet the challenges o

    ast population growth, youth unemployment,

    and criminality, including raskol gangs. East

    Timor aces similar economic growth and

    population problems. One o the worlds

    newest independent states, it must build the

    habits and practice o a sovereign nation whileacing a signicant task o reconciliation and

    reconstruction. Fijis ourth coup in 20 years

    wE DO NOT bELIEvE THAT ANY REgIONAL POwER IS EAgER TO SEE

    FUNDAmENTAL gEOSTRATEgIC CHANgE...bUT THERE IS ALwAYS A

    POSSIbILITY OF STRATEgIC mISCALCULATION.

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    has overturned parliamentary democracy,

    set back the countrys economic prospects

    and heightened perceptions o increased

    instability in the region.

    Australia is linked to the region by our history

    as well as geography, and we have a lasting

    commitment to help build stability and

    prosperity. There is no easy solution: some o

    these states lack the basics o sustainable

    economic, institutional and inrastructure

    development, and their limited budgets

    and porous borders make them potentially

    vulnerable to adverse infuences. Australia

    will commit resources, including those o

    the ADF, and work cooperatively with our

    neighbours to overcome these problems.

    THE bROADER ASIAPACIFIC

    Australias uture strategic landscape will

    be shaped by how the worlds major powers

    the United States, Japan and China in

    particular deal with each other in the Asia

    Pacic. Thus ar the prospects are good.

    The AsiaPacic has beneted rom a status

    uo where the United States has been the

    predominant military power or over 50 years.

    This has underpinned the regions remarkable

    economic growth or decades. We do not

    believe that any regional power is eager to see

    undamental geostrategic change. Still, as

    China and India grow, and the United Statesrebalances its global commitments, power

    relations will change, and as this happens

    there is always a possibility o strategic

    miscalculation.

    The United States will remain the dominant

    global economic, technological and military

    power at least or some decades. The 2000

    White Paper recognised that US primacy was

    a oundation o the AsiaPacics stability,

    and that remains the case now. Through its

    military presence in the region and its bilateral

    and alliance relationships with key players,

    the United States will remain the major

    shaper o international security, including in

    the AsiaPacic, as the United States adapts

    and modernises its military posture.

    Australia has no closer nor more valuable

    partner in the region than Japan. Japans more

    active security posture within the US alliance

    and multinational coalitions is in keeping

    with its economic and diplomatic weight and

    has long been supported by Australia. In that

    role Japan has made valuable contributions

    to operations in East Timor and Ira, and

    Australia welcomes its eorts to contribute

    more directly to regional and global stability.

    Japans alliance relationship with the United

    States has been one o the stabilising

    eatures o postWorld War II Asia, and willcontinue to play an important role. Trilateral

    cooperation between Australia, Japan and the

    United States will be increasingly important

    in this context. The AustraliaJapan Joint

    Declaration on Security Cooperation marks an

    important milestone in the bilateral security

    relationship.

    Chinas emergence as a major market and

    driver o economic activity both regionallyand globally has beneted the expansion

    o economic growth in the AsiaPacic and

    globally. But the pace and scope o its military

    modernisation, particularly the development

    o new and disruptive capabilities such as the

    antisatellite (ASAT) missile (tested in January

    2007), could create misunderstandings and

    instability in the region.

    THE USCHINA RELATIONSHIP IS CRUCIAL

    TO ASIAPACIFIC SECURITY.

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    China has a legitimate interest in protecting itsown security. It has tremendous opportunities

    to exert its claim as a responsible stakeholder

    in regional security. China is the nation with

    the greatest infuence over North Korea, and

    we strongly encourage Chinas eorts to

    moderate North Koreas behaviour. Taiwan

    remains a source o potential strategic

    miscalculation and were that to happen it

    could have disastrous conseuences or the

    region, and or global security. All parties

    should strive or a peaceul approach to

    the issue o Taiwan. Australia continues to

    support the status uo and the One China

    policy as the basis o our approach to the

    issue.

    The USChina relationship is crucial to

    AsiaPacic security. Both countries are

    increasingly dependent on each other or

    trade and nancial and economic prosperity.

    But while economic cooperation is high, there

    is also an element o strategic competition.

    The relationship must be managed careully

    or the good o the entire region. Chinas

    relationship with Japan is also a complex mix

    o economic, security and political actors.

    As Japan increases its security role Beijing

    and Tokyo will have to work their way careully

    through a changing strategic environment.

    The Korean Peninsula lies at a strategic

    crossroads. Its geography makes it vitally

    important to China, Japan and Russia, and

    South Korea is an important ally o the United

    States. Australia strongly condemned North

    Koreas nuclear weapons test on 9 October

    2006. The test has heightened tensions

    on the Korean Peninsula. A nucleararmed

    North Korea threatens regional peace andstability. While diplomatic eorts have

    produced undertakings or North Korean

    wE REmAIN COmmITTED TO THE TERRITORIAL INTEgRITY OF

    INDONESIA.

    denuclearisation, its policy o brinkmanshipand belligerence continues to have a

    destabilising eect on North Asia.

    Indias expanding economy and greater

    international engagement, including closer

    relations with the United States, are giving

    New Delhi a stronger voice on international

    strategic matters. Australian and Indian

    interests converge on key issues o global

    stability, and we look orward to increasingdeence and security cooperation.

    In Southeast Asia, or the next ew years

    the most pressing security issues will be

    about internal security matters. Terrorism,

    insurgency and communal violence ester in

    parts o the region, and we expect regional

    governments will continue to ocus their

    security eorts on them. There have been

    some signicant achievements. Ater ouryears where there had been at least one

    major, largescale attack a year on Australian

    and Western interests in Indonesia, JI has

    ailed to successully conduct an attack since

    the second Bali bombings in October 2005.

    The ollowing month an Indonesian police raid

    killed JIs chie bomb maker and Indonesian

    police and intelligence in cooperation

    with Australia oiled planned attacks and

    disrupted JI cells in Sulawesi and Java.

    The consolidation o democracy in Indonesia

    is also a very welcome development and it has

    given that country its best chance or long

    term stability and prosperity. As we indicated

    by our signature o the Lombok Treaty in

    November 2006, we remain committed to

    the territorial integrity o Indonesia. We see

    a stable and secure Indonesia as integral to

    the democratic and economic reorms under

    way, and that is also very much in Australias

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    own strategic interest. Still, democratic

    government has not proven as resilient in

    other parts o the AsiaPacic, as military

    coups in Thailand and Fiji show.

    Australia also values our close dialogue and

    engagement with our other ASEAN partners,

    particularly Singapore, Malaysia, and the

    Philippines. This will help strengthen regional

    cooperation, and improve the capacity o

    states to look ater their own security.

    THE mIDDLE EAST ANDCENTRAL ASIA

    Many o the worrying strategic trends

    highlighted in this Update intersect in the

    Middle East. Terrorism inspired by religious

    extremism, WMD prolieration, environmental

    and demographic challenges, stagnant

    economies and, in some cases, poor uality

    political governance are all eatures o the

    region.

    We expect Australias strategic involvement

    in the Middle East to continue, refecting

    the continuing importance o the region to

    our security and broader national interests.

    Three eually important actors drive that

    assessment. First, the United States will

    remain heavily engaged in the Middle East,

    including Ira and Aghanistan. Although

    its strategies and military presence may

    adapt, the United States does not have a

    realistic option to withdraw rom the region

    because to do so would undermine its own

    security, and that o its allies. Second, the

    wE ExPECT AUSTRALIAS STRATEgIC INvOLvEmENT IN THE mIDDLE

    EAST TO CONTINUE, REFLECTINg THE CONTINUINg ImPORTANCE OFTHE REgION TO OUR SECURITY AND bROADER NATIONAL INTERESTS.

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    strategic interests and resource needs o

    emerging global powers such as China and

    India, as well as our major trading partners,

    are increasingly tied to the Middle East.

    Last, extremist terrorism continues to draw

    unding, support and people rom the Middle

    East. For as long as that is true Australia and

    likeminded countries need to ght terrorism

    at its source rather than wait or it to come

    to our shores.

    The stakes are high in Ira and Aghanistan,

    not only or the peace and stability o those

    countries, but also because the outcome

    will infuence how the United States uses

    its power in uture to deal with security

    challenges. Ultimately our own security and

    that o the AsiaPacic is tied to nding a

    sustainable balance in the Middle East that

    weakens terrorism and enhances stability.

    To help deeat terrorism Australia must have

    patience, a sustained military commitment,

    a willingness to adapt to conditions on the

    ground and work closely with our riends and

    allies.

    Consideration o the security situation in theMiddle East must also contend with WMD

    prolieration. Irans nuclear plans remain a

    major concern. A nucleararmed Iran would

    be a ur ther cause o regional instability. Irans

    activities have been condemned consistently

    by the United Nations Security Council.

    Sanctions have been imposed to enorce

    principles o nuclear nonprolieration. We

    recognise there is also a need or continued

    and increased diplomacy by concerned

    nations to counter Irans nuclear ambitions.

    A mORE CHALLENgINg

    STRATEgIC

    ENvIRONmENTDespite the security challenges posed by

    terrorism as serious as they are nation

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    states are still the key players shaping our

    security environment. In Asia, we can see

    both strengthening nationstates as well as

    challenges to state sovereignty. In the Middle

    East, nationstates are under increasing

    pressure, including rom nonstate groups.

    Such changing patterns o power, orce and

    capability have strategic implications or

    Australia. Since the White Paper o 2000,

    the Updates have tracked the emergence onew security structures and new challenges

    to stability.

    So Australia must prepare prudently or a

    range o deence contingencies, rom small

    scale local concerns and possibilities, to

    unanticipated, statebased confict. We are

    well placed to play a greater regional and

    global role in strengthening security, and we

    have a solid track record working with othersto keep our region peaceul. The next chapter

    examines the key elements o our deence

    policy and the impact these have on the

    shape o our military orces.

    SUmmARYGlobalisation, terrorism, the challenges posed

    by ragile states and the threat o WMD

    prolieration all continue to shape our security

    environment. We also need to take into

    account relations between the major powers

    in our region and the changes in the use o

    orce by states and terrorists. Because o their

    importance to our interests and their potential

    to reshape global security, the Middle East

    and AsiaPacifc will continue to ocus ourattention or some time.

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    AUSTRALIAS DEFENCE POLICY

    Understanding our strategic environment and

    the longterm trends that are changing the

    AsiaPacic region is the starting point or

    the Government when it comes to making

    decisions about the sie and shape o the

    ADF. The strength o Australias economy is

    undamental to our ability to provide or our

    deence. But budgets are always limited, so

    dicult choices have to be made about thepriorities we set or our military orces. It is

    vital to have a clear deence policy ramework

    that guides decisions about developing the

    ADFs capabilities and helps us to judge

    when, where and how we might use our

    military power.

    The rst duty o the Government is to

    guarantee Australias national sovereignty,

    protect our citiens and promote Australiasinterests. To uphold that duty, the Government

    must ensure:

    security at home, to keep Australia ree

    rom direct threat;

    2C H A P T E R

    DEFENCES ENDURINg STRATEgIC PRIORITY IS TO kEEP AUSTRALIA

    AND THE AUSTRALIAN PEOPLE SAFE FROm ATTACk OR THE THREAT OFATTACk, AND FROm ECONOmIC OR POLITICAL COERCION.

    continued avourable economic conditions,

    essential or a trading nation and to allow

    us to sustain our way o lie; and

    a benign international security environment

    that promotes our national interests,

    including the saety o Australians

    overseas.

    The Governments enduring strategic priority

    is to keep Australia and the Australian people

    sae rom attack or the threat o attack, and

    rom economic or political coercion. A secure

    Australia depends on a benign security

    environment; and in turn this depends on

    continued economic growth, and the security

    and stability o our allies and trading partners.

    Stability and prosperity at home allows

    Australia to contribute to the wider regional

    and global security environment, and so to

    promote avourable economic conditions.

    The possibility o unexpected shocks to our

    security arising rom some o the trends

    described in the last chapter is high, though

    the timing and eect o such events are hard

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    to gauge. Deence policy must be realistic

    about the limits o sie and scale Australia

    aces. We have to take this into account in the

    design o the ADF. For example, maintaining

    a mass army on the same scale as some

    o our neighbours is not possible given

    our demography, workorce and relatively

    small population. So the task o structuring

    Australias deence policies and capabilities

    is a challenging one.

    Our deence planning will always include a

    ocus on our region. We live in an uncertain

    and changing part o the world where strategic

    shits are challenging our assumptions about

    stability. For example, statebased confict in

    North Asia though a low probability cannot

    be ruled out. We must rethink the amount

    o warning time we might receive about a

    strategic shock and closely watch the growth

    o military capabilities in other deence orces

    in our region. Still, our geographic distance

    rom many conficts can work to our advantage,

    as does the act that we have good relations

    with our neighbours.

    wE LIvE IN AN UNCERTAIN AND CHANgINg PART OF THE wORLD

    wHERE STRATEgIC SHIFTS ARE CHALLENgINg OUR ASSUmPTIONS

    AbOUT STAbILITY.

    It is the Governments policy that our armed

    orces must be able to deend Australia

    without relying on the combat orces o other

    countries. We must be the sole guarantor o

    our own security. It is not healthy or a country

    to become dependent on another or its basic

    deence. That situation would not be good or

    Australia or our allies. Further, i Australia

    was ever to be directly threatened, our allies

    may well be engaged elsewhere, and unable

    to assist. This may sound unlikely, but it was

    a hardlearned lesson rom the Second World

    War.

    wHERE AUSTRALIA mUSTLEAD

    We must be able to limit the options o

    potential adversaries in our area o paramount

    deence interest. That means it is essential

    or the ADF to have the capacity to act

    decisively on security issues and be able to

    deter and i necessary deeat any aggressive

    act against Australia or our interests in that

    area. Our area o paramount deence interest

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    includes the archipelago and the maritime

    approaches to Australia to our west, north

    and east, the islands o the South Pacic as

    ar as New zealand, our island territories and

    the southern waters down to Antarctica.

    Being able to reach beyond our immediate

    region or a variety o deence tasks helps

    us secure our deence. Such tasks might

    range rom assisting civil authorities such

    as the police and Customs, to adapting to

    challenges posed by increasingly capable

    adversaries and to participate in large

    scale coalition operations. Having a strong

    military capability reinorces our diplomatic

    and economic power and it reassures our

    neighbours that Australia is not vulnerable to

    an aggressor that could destabilise the wider

    region. It also contributes to the strength o

    our vital alliance with the United States.

    A urther consequence o the need to be able

    to play a leading deence role in our immediate

    region is that Australias orces must maintain

    a high level o preparedness that is, the

    capacity to be used on operations at short

    notice. The greater distance our orces may

    have to travel decreases the time available to

    respond to any event it takes longer to getto the emergency and oten longer or allies to

    assist. So it remains in Australias interest to

    keep the initiative. Greater preparedness also

    deters wouldbe aggressors by complicating

    their task. The ability to control our air and

    sea approaches, as noted in Deence 2000,

    has evolved through necessity to cover our

    area o paramount deence interest. I need

    be, Australia must be prepared to assume

    bEINg AbLE TO REACH bEYOND OUR ImmEDIATE REgION FOR A vARIETY

    OF DEFENCE TASkS HELPS US SECURE OUR DEFENCE.

    the burden o maintaining peace and stability

    locally, not least as a bulwark or our own

    security.

    wHERE AUSTRALIA

    SHOULD CONTRIbUTE

    Further aeld, Australia cannot expect to

    predominate as a military power nor ordinarilywould it act alone. Australia will work to create

    a benign regional security environment and

    pursue our national interests in conjunction

    with allies and riends. Australia will aim to

    make signicant ADF contributions to coalition

    operations where our national interests

    are closely engaged. Our range o potential

    military contributions covers the spectrum

    o ADF capability, rom its core task o war

    ghting, through to running stabilisation

    operations and humanitarian response

    missions. These tasks will oten be perormed

    in close cooperation with civilian elements

    and agencies such as the Department o

    Foreign Aairs and Trade, police and aid

    organisations. The nature o these individual

    contributions their shape, sie, complexity

    will vary according to circumstance. For

    example, in the last ew years, signicantcombat orces, including air and sea units,

    have been deployed regionally and to the

    Middle East. The security, capacitybuilding

    and training taskorces assigned under

    Operations Catalyst, Slipper, Astute and Anode

    also comprise signicant contributions to the

    pursuit o Australias strategic interests. The

    ADF has specic skill sets oten requested

    or coalition purposes, such as special orces

    and airtrac controllers.

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    Australias national interests are not spread

    uniormly across the globe, but nor do they

    decline in proportion to the distance rom our

    shoreline. For the oreseeable uture, we can

    expect there will need to be a Deence ocus

    on security in both the AsiaPacic and the

    Middle East or the reasons outlined earlier:

    the AsiaPacic is our neighbourhood, while

    our strategic interests are vitally engaged in

    the Middle East.

    While Australia has a wide strategic outlook

    and a clear interest in promoting a peaceul

    global security environment, our limited

    resources mean that we must design the

    shape o ADF contributions to coalition

    operations careully and without wasting

    resources. We must distinguish between

    issues in which our national interests are

    directly engaged and those where we have a

    general commitment because o our broader

    humanitarian responsibilities. Examples o

    discretionary contributions could include

    deploying medical teams or planning ocers

    to UN missions. Australia has made and

    will continue to make such humanitarian

    contributions, but these clearly engage our

    security interests in a ar less direct way than

    operations in our immediate region.

    At a time o big strategic change it makes

    more sense to work with others to ensure

    peace and stability and to build a robust

    military orce able to deal with many

    tasks and roles. We can expect to see

    more security partnerships and increased

    AT A TImE OF bIg STRATEgIC CHANgE IT mAkES mORE SENSE

    TO wORk wITH OTHERS TO ENSURE PEACE AND STAbILITY

    AND TO bUILD A RObUST mILITARY FORCE AbLE TO DEAL

    wITH mANY TASkS AND ROLES.

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    cooperation with our regional riends and

    allies. This cooperation will range rom local

    multilateral security assistance provided to

    nations such as Solomon Islands and East

    Timor, to participation in larger undertakings,

    such as our involvement in Aghanistan and

    Iraq, and our close cooperation there with

    the United States, the United Kingdom,

    Japan and deployed NATO orces. These

    partnerships enhance the ADFs capabilities,boost Australias international standing and

    contribute prooundly to the security o our

    region.

    SUmmARYDeences enduring task is to keep Australia

    and its people sae rom attack and rom

    military coercion. Deence policy will always

    have a home bias we need certainty close

    to home, and expect to lead in shaping the

    security in our immediate region. But we also

    recognise our interests oten must be secured

    in places distant rom Australia. In those

    circumstances, we expect to work with allies

    and riends. Our contributions will refect theimportance o our interests and a best t

    with the task at hand and the nature o the

    overall operation.

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    APPLYINg AUSTRALIAS mILITARY

    POwER

    3C H A P T E R

    In previous Updates we identied global

    terrorism, WMD prolieration and ragile states

    as major concerns or Australian security.

    We know these developments continue to

    shape Australias environment, and Deence

    must respond to the security concerns they

    present. We also work to help the major

    powers in our region maintain a constructive

    dialogue with each other. Deence plays an

    active part in regional security dialogues with

    riends and neighbours.

    INTERNATIONAL

    SECURITY

    PARTNERSHIPS

    It is becoming hard to separate the global,

    regional and local dimensions o security

    threats. Australias strategic interests can

    oten be aected by events geographically

    ar away. But partly because o geography,

    and partly because o limited resources,

    Australia mostly chooses to work in coalition

    with riends and allies when our interests

    are aected in places beyond our immediate

    area o paramount deence interest. It has

    always been the Australian way to cooperate

    with riends and allies. Whatever the military

    task, be it detection, deterrence, prevention,

    response, or reconstruction, we need partners

    to help promote our security interests on the

    wider world stage. Right now, that means

    we must work hard to boost our security

    partnerships, reinvigorate those already

    established, and explore opportunities or

    new partnerships to help us better deal with

    todays security problems.

    AUSTRALIAS ROLE AS A

    SECURITY LEADER

    Deence, at government direction, has

    increased eorts to help stabilise dangerous

    situations in ragile states. Our approach is

    to lead, shape and engage: that is, we aim

    to be the leading power in our immediateregion in bringing together military coalitions

    that will shape positive security outcomes. As

    much as possible we will do this by engaging

    IT HAS ALwAYS bEEN THE AUSTRALIAN wAY TO COOPERATE wITH

    FRIENDS AND ALLIES.

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    local communities in aected countries

    and working with our security partners. It

    is important that we try to build coalitions

    o riends and neighbours in our region.

    Australias strategic leadership benets

    greatly rom our established partnerships in

    the region, particularly with New zealand and

    the island states o the South Pacic.

    Capacity building remains a ocus o

    our eorts in the South Pacic. We are

    encouraging nations to establish more co

    operative approaches to security, especially

    in maritime surveillance. We are helping

    regional security orces build the skills and

    proessionalism, and the development o

    appropriate civilmilitary relations, to enable

    them to provide eective and appropriate

    responses to national security challenges.

    For example, we provide inrastructure

    assistance to PNG and ADF advisers to the

    PNG Deence Force. We also advise PNG on

    weapons security and control, organisationalimprovements and budget, expenditure and

    nancial management. In the South Pacic,

    our deence cooperation programme oers

    training opportunities in areas ranging rom

    English language skills to engineering, inantry

    and command. We also sponsor a range o

    multilateral exercises and activities, including

    humanitarian and disaster relie exercises,

    maritime surveillance, and communications

    projects. Through our eorts we aim to raise

    skills and awareness and so the ability o

    regional nations to work with us. That also

    helps develop a more cohesive response to

    security issues within our immediate region,

    in partnership with our riends and allies.

    Still, our approach particularly in Solomon

    Islands and East Timor needs a lot o

    patience. Progress is not assured, and oten

    depends on a willingness to bring together

    commitments to change the political,

    economic, social and security situation.

    Positive change takes time to gain momentum

    and to oer tangible and sustained benets

    or local populations. The path will not always

    be smooth or assured, but by paying attention

    and committing to security and stabilisation

    eorts over the long term, we will build a

    more stable environment in Australias near

    region.

    We expect Australia will oten be called on to

    act as a security leader within our immediate

    neighbourhood. We should not plan to rely

    on the security capabilities and resources

    o our riends and allies to assist in military

    operations in our immediate region. In many

    cases Australia will be called upon to lead

    other countries, and to provide them with

    key military resources like logistic support

    and air and sea transport that will make it

    possible or smaller countries to participate in

    regional security missions. A strong network

    o regional deence cooperation links is an

    important oundation or successul regionalcoalition operations.

    AUSTRALIAS ROLE AS A

    SECURITY CONTRIbUTOR

    Australia has or many years been an important

    contributor to security operations around the

    world. We aim to make sure the ADF operates

    where it can add the most practical value to

    missions that are important or global stability

    and our national interest. We work with allies

    and partners to achieve mutual security goals.

    The orces we oer to international operations

    need to be balanced against the demands

    on other ADF commitments and the impact

    they will have on our deence capabilities as

    a whole. Some elements o our orces will

    oer greater complementarity with partners

    than others. A key consideration is to makesure our contribution achieves the best

    eect given the circumstances, threats and

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    wE ExPECT AUSTRALIA wILL OFTEN bE CALLED ON TO ACT AS A

    SECURITY LEADER wITHIN OUR ImmEDIATE NEIgHbOURHOOD.

    opportunities. So while the AsiaPacic and

    the Middle East are both vital to Australian

    interests, our Deence involvement in each

    diers substantially.

    In the Middle East, or example, we have

    committed substantial Deence resources.

    In Aghanistan, the ADF is working with NATO

    orces a Dutch contingent as part o theInternational Security Assistance Force. An

    ADF Reconstruction Task Force is helping to

    rebuild and improve local inrastructure, rom

    schools to hospitals, roads and bridges. In

    a dangerous theatre o war, reconstruction

    helps to bring hope and promote stability by

    strengthening local capacity and increasing

    security. This substantial Australian

    contribution complements the eorts made

    by NATO and US orces to strengthen a

    weak state, disrupt terrorist operations and

    bolster security. The Government believes

    an ongoing commitment to Aghanistan is

    important. The Government believes it is vital

    we stay the course in Aghanistan. Retreat

    now would weaken Aghanistans chances or

    democracy, strengthen terrorism and make it

    look as though we were not serious about our

    own security.

    In Ira, Australian orces were dispatchedto uphold Australias support or long

    standing United Nations Security Council

    resolutions against the danger o Ira

    regaining a WMD capacity. This refected a

    undamental Australian and global security

    concern. Our orces are now operating with

    a coalition o allies and partners that have

    a common interest in helping build a stable

    Ira ollowing the all o Saddam Husseins

    regime. Australia will continue to honour our

    obligations to the Irai people, and help them

    in building a more stable uture. Deence

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    is heavily ocused on helping to build the

    capacity o the Irai Security Forces, so

    strengthening internal security, protecting the

    sovereignty o Ira and aiding the prospects

    or political reconciliation.

    Deence will continue to participate in

    multilateral operations with allies and

    partners. The Government will target its

    contributions such that they have greatest

    eect, given the inherent constraints on our

    orce sie and capability. Deence will continue

    to develop more security partnerships and

    engage in activities supporting Australias

    national interests locally, regionally and

    globally.

    THE US ALLIANCE

    Our alliance with the United States will

    remain Australias most important strategic

    relationship because we share many

    common values and many security interests,

    and have a similar strategic outlook. We are

    also prepared to participate, share risk and

    contribute to the overall security burden.The alliance provides our military orces

    with added reach: it deepens the ADFs

    wE HAvE A vITAL INTEREST IN AmERICAN POwER, AmERICAN PURPOSE

    AND AmERICAN RELATIONS wITH THE OTHER POwERS OF OUR REgION.

    capabilities and broadens our strategic

    knowledge. The alliance enhances the hard

    (military) power the ADF brings to bear and

    the sot (diplomatic) power we bring to the

    table. It complicates the planning o any

    potential adversary. We have a vital interestin American power, American purpose and

    American relations with the other major

    powers o our region.

    Militarily, we obtain greatest eect by

    working with allies. While the United States

    will remain the predominant power in the

    region or at least a generation, and probably

    beyond, other countries in the AsiaPacic

    are increasing in strategic importance. It isundamentally important to Australia that

    the United States continues to be outward

    looking and positively involved in the Asia

    Pacic because the United States is still the

    key actor in regional stability.

    qualitatively, our alliance with the United

    States continues to deepen and broaden,

    with both partners increasingly ocused on

    mutual interests, military integration andinteroperability. The closeness is shown by

    our longstanding cooperation on intelligence,

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    surveillance and reconnaissance. New

    protocols have allowed an increased sharing

    o inormation and personnel exchanges.

    In coalition missions ADF personnel have

    been given ull operational control o US

    orces. Australia and the United States

    continue to explore technologies and

    strategies or ballistic missile deence, space

    cooperation and intelligence, surveillanceand reconnaissance, and are working to

    enhance acuisition, logistics, and research

    and technology issues.

    LONgTERm RELATIONSHIPS

    Australia has long pursued its security

    interests by maintaining security partnerships

    with regional riends and neighbours. Building

    security partnerships and engaging regionalstates in deence and security dialogues

    helps to reassure states and oers a

    means by which potential problems can be

    resolved. Over the past two years, Australia

    has ormalised and strengthened some key

    security relationships. For example, we have

    concluded the AustraliaIndonesia Agreement

    on the Framework for Security Cooperation,

    signed the AustraliaIndia Memorandum of

    Understanding on Defence Cooperation, and,

    most recently, joined with Japan to make the

    AustraliaJapan Joint Declaration on Security

    Cooperation. We have also deepened other

    longstanding relationships through the

    Trilateral Dialogue with the United States and

    Japan, and the AustraliaUnited Kingdom

    Ministerial (AUKMIN) talks.

    New Zealand is a close and longstanding

    security partner. Bilateral deence relations

    are underpinned by the Closer Deence

    Relations agreement (CDR). A key objective

    o CDR is or both countries to work together

    in combined and joint military operations.

    Interoperability between the two deence

    orces has been enhanced through a range

    o engagement activities, particularly or

    operations in our region.

    Close to home, the AustraliaIndonesia

    Agreement on the Framework or Security

    Cooperation was signed in November 2006.

    This agreement is the culmination o eorts by

    both countries to address common concerns

    such as terrorism, peoplesmuggling and

    illegal shing. The treaty underscores the

    importance o deence ties and our eorts to

    revitalise those ties over the past ew years.

    The recent AustraliaJapan Joint Declaration

    on Security Cooperation signed by the Prime

    Minister on 13 March 2007 is part o a

    developing regional security architecture. It

    signals that Japan has decided to take up

    more responsibilities as a security partner,

    and rearms Japans status as one o

    Australias indispensable partners in the

    region. The declaration ormalises a security

    dialogue that has been under way or many

    years. The inaugural JapanAustralia 2+2

    Ministerial meeting in June 2007 discussedkey regional security issues and ways to

    urther strengthen the bilateral relationship.

    Australias strategic engagement with China

    has been limited to date, but it is growing at a

    pace that recognises our substantial shared

    interests in regional security. We maintain a

    valuable dialogue with China and look orward

    to expanding the relationship at a pace

    comortable to both countries.

    NO OTHER COUNTRY mATCHES THE RANgE AND qUALITY OF DEFENCE

    ENgAgEmENT THAT wE HAvE wITH SOUTHEAST ASIAN NATIONS.

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    Australia and India share a common interest

    in enhancing regional peace and security.

    In March 2006, the deence relationship

    took a signicant step orward when the

    Prime Minister signed the AustraliaIndia

    Memorandum on Deence Cooperation. Our

    deence relationship has a natural ocus

    The Five Power Defence Arrangements linking

    Australia with the United Kingdom, New

    zealand, Malaysia and Singapore continues

    to make a substantial contribution to regional

    stability as do our bilateral defence relations

    with many Southeast Asian countries. These

    relationships represent a signicant strategic

    THE ADF HAS A LEvEL OF REACH AND THE CAPAbILITY TO SUPPORT

    OvERSEAS OPERATIONS NOT POSSESSED bY OTHER gOvERNmENT

    AgENCIES.

    on maritime security while cooperation on

    counterterrorism builds on our common

    interests and experiences in this area.

    Australias longstanding deence relationship

    with the United Kingdom remains a valuable

    strategic asset. Our close, oten combined,

    participation in conficts and wars as well as

    our intelligencesharing arrangements show

    that we have overlapping strategic interests.Australias deence relations with the

    United Kingdom enhance our strategic and

    operational reach and our ability to deend

    key national interests.

    asset. No other country matches the range

    and uality o deence engagement that

    we have with Southeast Asian nations. Our

    deence ties go back many years. We regularly

    engage through high level contacts, dialogue,

    exercises, training and education, and

    personnel exchanges. These activities serve

    to improve our access to decision makers,

    enhance our mutual understanding, and

    improve the capacity o our deence orces

    to work together. In particular, they assist

    regional deence orces capabilities in areas

    that matter to us, such as counterterrorism,

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    maritime security, governance, peacekeeping

    and disaster relie. The Status o Forces

    Agreement signed with the Philippines in

    May 2007 is indicative o our strengthening

    cooperation in these areas.

    In the postCold War era, NATO is developing

    its links with global partners, such as

    those working in the International Security

    Assistance Force in Aghanistan. Australia

    has had valuable cooperation with NATO while

    not being part o that alliance. More recently,

    Australia and NATO have expanded this

    engagement to include practical cooperation

    on terrorism, WMD prolieration and on

    assisting weak states.

    wHOLEOF

    gOvERNmENT

    RESPONSES

    The term wholeogovernment is a way o

    describing the increasingly close cooperation

    that takes place between Deence, Australias

    intelligence agencies, State and Federal

    police, the Department o Foreign Aairs and

    Trade (DFAT) and other agencies involved in

    internal and external security. Australias

    wholeogovernment eort was a major

    theme o the 2005 Update, and it continues

    to grow or two reasons. First, contemporary

    security challenges are complex and reuirecomprehensive responses drawing on all

    acets o Australias national power. Second,

    we have seen in East Timor and other places

    that the stability an ADF mission can provide

    will not last in the long term unless ways are

    ound to create economic growth, improve

    the uality o government and build strong

    communities.

    We expect that the ADF will be involved inmany wholeogovernment operations in

    coming years by providing ontheground

    stabilisation missions as needed, or by

    providing specialist support including military

    transport and logistic supply. But the long

    term deployment o large orces is expensive,

    both nancially and in terms o limiting our

    options or other ADF missions.

    The ADF has a level o reach and the

    capability to support overseas operations not

    possessed by other government agencies.

    Deence can provide this support so that other

    agencies can do important tasks overseas.

    Strengthening nationstates and responding to

    humanitarian disasters reuires a wide range

    o expertise in elds like policing, governance,

    economics, engineering, administration,

    health and education. Nongovernment

    organisations such as churches, charities,

    voluntary and youth groups also do vital work

    to help strengthen security in countries where

    government structures and services may be

    weak. Other government agencies are oten

    better placed than Deence to build the rightcommunity relations. Deence will continue to

    cooperate closely with the Australian Federal

    Police (AFP), DFAT and AusAID on regional

    stabilisation missions.

    Counterterrorism concerns are also at the

    oreront o security initiatives. Deence

    is working closely with Indonesia and the

    Philippines to build stronger networks and

    counterterrorism capabilities. Cooperationwith Indonesia is a high priority or Deence,

    particularly in the areas o terrorism, border

    security and intelligence exchanges.

    Deence is also an active participant in the

    Prolieration Security Initiative, a commitment

    by over 80 nations to impede or disrupt illegal

    trade in WMD to both state and nonstate

    groups. Deence helps to plan and work to

    maintain the capabilities needed or WMDinterdiction through involvement in regular

    PSI exercises. The ADF provides naval and

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    air interdiction capabilities, working closely

    with DFAT, law enorcement, Customs and

    intelligence, and jointly with PSI partners.

    Deences role is evolving also into a range

    o domestic security tasks dealing with

    nontraditional threats, such as pandemics,

    natural disasters and threats to national

    sovereignty in the orm o illegal immigration

    and illegal shing. While the States and

    Territories have increased unding in the area

    o counterterrorism Deence has uniue

    capabilities that may need to be deployed

    to meet such threats. Since 2001, the

    Government has committed more than $1.3

    billion to enhance Deences domestic security

    and counterterrorism capability. The Border

    Protection Command works closely with key

    agencies including Customs to coordinate

    and respond to emerging oshore incidents,

    and to protect Australias borders and critical

    inrastructure. Deence works closely with

    health authorities and state governments

    as a supporting agency to prepare or the

    possibility o a major pandemic. The ADF also

    plays an instrumental role supporting civil

    authorities in Government security operations

    at major events, such as the Commonwealth

    Games and Asia Pacic Economic Cooperation(APEC) meetings.

    AN INTEgRATED FORCE...CAN RESPOND mORE RAPIDLY, PRECISELY,

    AND AgILELY TO CHANgES IN THE STRATEgIC, OPERATIONAL AND

    TACTICAL ENvIRONmENTS.

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    A JOINT AND

    INTEgRATED

    ORgANISATIONThe term jointness reers to the way the

    three Services the Army, Navy and Air Force

    work together on operations. (The ADF is

    moving rom one orm o jointness where

    the Services work together but do so as three

    distinct groups to another where the Services

    retain their individual identity, culture and

    expertise but work as one entity.) Deence is

    exploiting communications and inormationtechnology to link sensors, weapon systems

    and commanders so that each shares an

    understanding o their environment an

    approach to war known as networkcentric

    warare. An integrated orce comprising air,

    naval and land elements linked together in

    this way can respond more rapidly, precisely

    and agilely to changes in the strategic,

    operational and tactical environments.

    Deence is working to ensure the ADF gains

    the ull benets o the networkcentric

    approach to warare. By enhancing our

    integrated command and control structures,

    including the creation o Headuarters Joint

    Operations Command, based at Bungendore,

    New South Wales, our orces will operate

    together more eectively. An integrated

    orce will also provide improved intelligence,

    surveillance and reconnaissance data.

    There remain a number o challenges to be

    overcome in developing an integrated orce.

    Being integrated will improve the ADFs ability

    to operate as an agile and fexible orce.

    For example, as land orces increasingly

    adopt some o the characteristics o special

    orces, then integration with air support will

    be essential to carry out their operations.

    And in the push or greater integration,

    individual Service personnel must retain their

    proessional mastery, undamental to the

    ADFs operational eectiveness. First and

    oremost the Services must retain their

    warghting skills to underpin the broader

    roles perormed in many dierent missions

    over recent years. The ADFs reach, its

    understanding o dierent operational

    environments, its skill in the use o military

    orce and its expertise in providing support

    and enabling capabilities collectively sustain

    Deences core role as a warghting

    organisation.

    Deence may not always be the lead agency

    or dealing with security or, more particularly,

    humanitarian challenges. The key to

    successully dealing with these challenges in

    the uture is through integrating the eorts

    o multiple agencies into a single, cohesive

    operation. The recent history o successul

    ontheground cooperation between agencies

    during previous operations provides an

    excellent basis or building such a capability.

    SUmmARYAustralia has always cooperated with friends

    and allies we need partners to pursue our

    interest globally. The alliance with the United

    States will remain Australias most important

    strategic relationship, and will continue to

    grow. In the region, our defence partnerships

    continue to support our security interests,

    as is evident in our recent agreements with

    Indonesia and Japan. The business of working

    with others continues within the Government:

    increasingly, security engages a range of

    agencies from aid, police, foreign affairs

    as well as defence. And our effectiveness

    is enhanced through increasing integration

    between the elements of our own Defence

    Force.

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    UPDATEONOPERATIONS

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    UPDATE ON OPERATIONS

    4C H A P T E R

    mARITImE

    ENFORCEmENT ANDbORDER PROTECTION :OPERATION RESOLUTE

    Deence contributes some 4501 personnel

    to the wholeogovernment operation

    protecting our borders. Operation Resolute

    provides greater fexibility in using assets

    such as ships and aircrat without reducing

    the number o ADF platorms on the operation

    or the hours they spend on task.

    Under Operation Resolute the ADF supports

    the Governments Civil Maritime Surveillance

    Programme, which protects Australian

    sheries (including in the Southern Ocean)

    and provides uarantine, customs and

    environmental security. This eort aims to

    deter and prevent unauthorised boat arrivals

    and provides an oshore maritime security

    response against maritime terrorism.

    SIgNIFICANT ADF RESOURCES ADD mUSCLE TO THE gOvERNmENTSCOORDINATED EFFORT TO PROTECT OUR OFFSHORE ASSETS AND

    DETER AND RESPOND TO ILLEgAL ImmIgRATION, SmUggLINg, FISHINgAND OTHER THREATS.

    Operation Resolute is controlled by the

    Border Protection Command (BPC), which

    has assumed responsibility or operational

    coordination and control o both civil and

    military maritime enorcement activities within

    Australias Exclusive Economic zone (EEz). The

    BPC is staed by military and civilian ocials

    rom Deence, Customs, the Australian

    Fisheries Management Authority (AFMA) and

    the Australian quarantine Inspection Service

    (AqIS). Signicant ADF resources add muscle

    to the Governments coordinated eort toprotect our oshore assets and deter and

    respond to illegal immigration, smuggling,

    shing and other threats.

    Our assets in Operation Resolute now include

    a standing maritime orce comprising a major

    naval vessel, ve (increasing to seven) patrol

    boats, a coastal minehunter, a heavy landing

    crat, elements rom Army regional orce

    surveillance units and a PC3 Orion maritimepatrol aircrat.

    1 Numbers actually deployed on all operations listed at any one time may vary depending on timings o deployments, the

    sie o naval units and other actors.

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    EAST TImOR/TImORLESTE : OPERATION

    ASTUTE AND OPERATIONTOwER

    Operation Astute is the ADFs stabilisation

    operation supporting the Government o East

    Timor and the UN Integrated Mission in East

    Timor (UNMIT). Police rom Australia and 20

    other nations provide security as part o the UN

    Police Force. Under Operation Astute, Deence

    provides support to these police operations

    as reuired. The Australianled International

    Security Force (ISF) supported the UN Police

    and the East Timorese Government during

    the May 2007 presidential election period,

    and the 30 June parliamentary elections.

    At its peak in June 2006, the Australian

    contingent numbered some 3,200

    personnel. Earlier this year, the Australian

    deployment included approximately 1,100

    personnel drawn rom throughout the ADF.

    The ISF includes Australian Army Black Hawk

    helicopters and an Army Light Observation

    Troop with Kiowa helicopters.

    Since rst deploying in 1999 as part o the

    International Force in East Timor (INTERFET),

    the ADF has maintained a strong commitment

    to the government and people o East Timor.

    Operation Tower comprises the ADFs support

    to the current UN mission, UNMIT. The ADF

    has three personnel deployed as part o

    the Military Liaison Group (MLG) and the

    Joint Military Analysis Cell in the UNMIT

    Headuarters.

    SOLOmON ISLANDS :OPERATION ANODE

    Operation Anode is the ADFs contribution

    to the Australianled Regional Assistance

    Mission to Solomon Islands (RAMSI). RAMSI

    is a multilateral grouping, which includes

    military, police and civilian advisers working on

    initiatives to restore security, law and justice,

    provide better economic management, and

    improve the machinery o government. The

    initial 2003 deployment was at the reuest

    o the Solomon Islands Government.

    The military component o RAMSI comprises

    personnel rom our nations: Australia, New

    zealand, Papua New Guinea and Tonga.

    The military components main task is to

    provide security or RAMSIs multinational

    Participating Police Force (PPF).

    Approximately 140 ADF troops are now

    deployed in Solomon Islands. Deployments

    reached a high in April 2006, ollowing riots

    in Honiara, when almost 400 ADF personnel

    deployed, including two inantry companies,

    two Irouois helicopters, two patrol boats,

    logistics and headuarters sta.

    IRAq : OPERATIONCATALYST

    Operation Catalyst, the successor to

    Operations Falconer and Bastille, began

    in July 2003. It is the ADFs contribution

    to the international eorts to reconstruct

    and rehabilitate Ira. In February 2007, the

    Government announced an enhanced ADF

    commitment to Operation Catalyst through

    an increased training eort. That raised the

    number o personnel assigned to Operation

    Catalyst to some 1,575 personnel. Operation

    Catalyst includes a number o elements,

    some o which are assigned to both Operation

    Catalyst and Operation Slipper in Aghanistan.

    The dual assignments include a major feet

    unit, the AP3C Orion Detachment, the C130Hercules Detachment and various elements

    o the National Headuarters.

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    Australia also has an ADF ocer assigned

    to the United Nations Assistance Mission in

    Ira (UNAMI), whose primary responsibilities

    include providing military advice to the

    United Nations Special Representative o the

    Secretary General (SRSG) and coordination

    o Multi National Force Ira (MNFI) support

    to UNAMI.

    AFgHANISTAN:OPERATION SLIPPER

    AND OPERATIONPALATE II

    Operation Slipper is the ADFs contribution to

    the international coalition against terrorism. In

    February 2006, the Prime Minister announced

    the deployment o a Reconstruction Task

    Force (RTF) to Aghanistan to support

    coalition operations or a period o two years.

    In September 2006 the RTF commenced

    its deployment as part o the Netherlands

    led Taskorce in Tarin Kowt, the capital o

    Orugan Province in the south o Aghanistan.

    The RTF consists o a mix o security and

    reconstruction personnel o approximately

    385 ADF members.

    The RTF is reconstructing and improving

    the provinces inrastructure and providing

    communitybased projects to help the Aghan

    Government build a stable and secure uture

    or its people. To date, projects have been

    completed or are under way at the Tarin

    Kowt Provincial Hospital, the Tarin Kowt High

    THE RTF IS RECONSTRUCTINg AND ImPROvINg THE PROvINCESINFRASTRUCTURE AND PROvIDINg COmmUNITYbASED PROJECTS

    TO HELP THE AFgHAN gOvERNmENT bUILD A STAbLE AND SECUREFUTURE FOR ITS PEOPLE.

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    School, a major causeway over the Garmab

    Mandah River, the Yaklengah Health Centre,

    and the Tamai School Compound Wall. These

    projects are developed in consultation with

    local authorities. The RTF has established a

    Trade Training School (TTS) where the local

    civilian population is taught basic engineering

    and mechanical skills. The TTS also provides

    military engineering training or the Aghan

    National Army.

    Ater comprehensive consultations with

    the government o Aghanistan and our

    key coalition partners, the Prime Minister

    announced in April 2007 that additional ADF

    elements would be sent to Aghanistan. These

    include a Special Operations Task Group to

    enhance orce protection to the RTF; a Royal

    Australian Air Force air surveillance radar

    capability deploying to Kandahar Aireld;

    an additional C130J Hercules aircrat and

    associated aircrew and support elements;

    and an increased command and logistics

    element to support the larger ADF orce.

    These orces are now in place.

    Australia also has an ADF ocer deployed

    to Aghanistan under Operation Palate II,

    supporting the UN Assistance Mission in

    Aghanistan (UNAMA).

    The total Australian commitment in

    Aghanistan ollowing the additional

    deployment will be about 970 personnel by

    mid2007, peaking at about 1,000 personnel

    in mid2008 when the combined orce in

    the Middle East will total around 2,500

    personnel.

    ISRAEL/LEbANON :OPERATION PALADIN

    Operation Paladin is Australias contribution

    to the UN Truce Supervision Organisation

    (UNTSO), established in 1948 to supervise

    the truce agreed at the conclusion o the rst

    ArabIsraeli War. Australia has supported this