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AUKUS

Australia–UK–US security partnership

  • 35 min read
  • 7 chapters

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AUKUS is widely seen as a response to the perception among its members that the People's Republic of China poses a threat to the Indo-Pacific region. The Chinese government said, when the partnership was announced, that it risked "severely damaging regional peace" and had a "cold-war mentality".

A direct result of the creation of the partnership was Australia's controversial cancellation of a French-Australian submarine contract worth €56 billion (A$90 billion). The Australian government only gave the French government a few hours' notice of this before the public announcement of AUKUS. The Australian government agreed to a €555 million (US$584 million) compensation settlement with French defence contractor Naval Group.

Background

In 2009, two years after the start of the project to replace the Royal Australian Navy's conventionally-powered Collins-class submarines, the Australian Defence White Paper stated: "The Government has ruled out nuclear propulsion for these submarines".

In 2016, Prime Minister of Australia Malcolm Turnbull signed a A$50 billion (€31 billion) deal with the majority French government-owned company Naval Group (known as DCNS until 2017) to design a new generation of submarines, known as the Attack class, under the "Future Submarine Program", scheduled to replace the Collins class. The design was based on the latest French nuclear-powered attack submarine, the Barracuda class, which required converting the nuclear propulsion to conventional propulsion. Another difference was that Australia chose to equip it with a United States Navy combat system and torpedo with Lockheed Martin Australia selected to integrate them into the design. Australia typically requires that part of their vessels be built there, which increases the cost. In this case it corresponded to 60 per cent of the contract value, with France handling the technology transfer.

In 2019, Australia signed a strategic partnership agreement with Naval Group to design and construct twelve submarines to be built in Australia. However, the project was beset by delays and cost overruns, leading to uncertainty and tension behind the scenes. The revised cost, including inflation during the length of the program, was A$90 billion (€56 billion).

In February 2021, an initial design plan was rejected as being too expensive, and Naval Group were given until September to improve their proposal. At a Senate inquiry in early June 2021, with delays ongoing, Defence Secretary Greg Moriarty revealed under questioning that he had considered making contingency plans if the French project was to fail, admitting that there had been ongoing problems for over a year. Two weeks later, Australian prime minister Scott Morrison met French president Emmanuel Macron in Paris and expressed concern about the project going off track, to which Macron replied that France was giving "full and complete" commitment and would proceed "further and faster if possible".

On 30 August 2021, the French and Australian defence and foreign affairs ministers released a joint statement reaffirming the project, stating that the "Ministers underlined the importance of the Future Submarine program."

Less than three weeks later, Australia decided to publicly cancel the contract with Naval Group for the Attack class submarines despite having already spent about A$2.4 billion on the French project. It was expected that Australia would have to pay hundreds of millions of euros in penalties for cancelling the contract. The contract contained "control gates" with "off-ramps" at which point Australia could withdraw from the contract.

The Australian Department of Defence wrote to Naval Group on the same day the security partnership was announced. The French Ministry of Defence claim the department told them that "they were satisfied with the submarine's achievable performance and with the progress of the program." Naval Group said that Australia "terminated the contract for convenience".

Morrison said that Australia now required a nuclear-powered submarine which has clear advantages of greater endurance, speed, power, stealth and carrying capacity than a conventionally-powered submarine, based on changes in the strategic situation in the Indo-Pacific.

Australia–UK–US negotiations

The Sunday Telegraph reported that in March 2021 the Australian navy chief Vice Admiral Michael Noonan met in London with his British counterpart Admiral Tony Radakin and requested assistance from the UK and the US in acquiring nuclear-powered submarines. The Daily Telegraph reported that British Foreign Secretary Dominic Raab "helped broker the deal". The New York Times also reported that Australia first approached the UK for assistance. The Wall Street Journal reported Australia approached the US in April 2021. A trilateral discussion was held between Johnson, Biden and Morrison at the June 2021 G7 summit held in Cornwall, England. The talks took place without the knowledge of the French government or Naval Group. This approach was possible as a result of the UK not entering into a formal foreign policy and security treaty in the post-Brexit deal with the EU. As a result, the UK was free to pursue enhanced cooperation with other allies. Axios reported that the Biden administration sought assurances from Australia that cancelling the contract was not dependent on the US providing them with assistance and that cancelling was a fait accompli. Morrison said Australia had been considering an alternative to the Attack class submarine deal for the past 18 months.

Although the joint announcement by Australian prime minister Scott Morrison, British prime minister Boris Johnson and US president Joe Biden did not mention any other country by name, except France, anonymous White House sources have alleged it is designed to counter the influence of Chinese forces in the Indo-Pacific region. However, Johnson later told parliament that the move was not intended to be "adversarial towards any other power".

United States secretary of state Antony Blinken and United States secretary of defense Lloyd Austin said that Australia did not have any "reciprocal requirements" as a consequence of the US sharing nuclear submarine propulsion technology such as Australia hosting intermediate-range missiles.

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