Washington: US War Secretary Pete Hegseth thanked Australia for its next $US1 billion ($1.5 billion) cheque to stimulate American shipbuilding as part of the AUKUS agreement, as ministers met in Washington for the 40th annual AUSMIN talks.
Secretary of State Marco Rubio also praised fresh “momentum” in the US-Australia alliance after October’s successful meeting between President Donald Trump and Prime Minister Anthony Albanese, during which Trump confirmed the AUKUS pact was “full steam ahead”.
Foreign Minister Penny Wong and US Secretary of State Marco Rubio ahead of annual AUSMIN talks in Washington.Credit: AP
Rubio and Hegseth are meeting Foreign Minister Penny Wong and Defence Minister Richard Marles for yearly high-level talks between the two allies that began under the leadership of Ronald Reagan and Bob Hawke.
The encounter comes days after the Pentagon finalised its five-month review of the AUKUS partnership, a deal brokered under then president Joe Biden and then prime minister Scott Morrison in 2021.
The review, which has not been made public, endorsed the scope and timeline of the deal but stressed it was critical for each of the three parties – the US, Australia and the UK – to meet their deadlines.
On the current timeline, Australia is to purchase three Virginia-class nuclear-powered submarines from the US starting in 2032, and then produce new AUKUS-class submarines with the UK in the 2040s.
War Secretary Pete Hegseth welcomed the imminent delivery of another $US1 billion cheque from Australia for submarine building.Credit: AP
But the US defence industrial base has struggled for years to produce enough boats for its own needs, let alone enough to divert some to Australia. Hence, under the agreement, Australia will inject $US3 billion of cash ($4.5 billion on current exchange rates) into US shipbuilding.
“We applaud Australia’s upcoming delivery of an additional $US1 billion to help expand US submarine production capacity,” Hegseth said in a brief joint press conference ahead of the Monday (Tuesday AEDT) meeting. “We’re strengthening AUKUS so it works for America, for Australia and for the UK.”
