Doorstop, Washington DC

SUBJECTS: Visit to US; Joint Statement of Intent with US; AUKUS.

MINISTER FOR DEFENCE INDUSTRY PAT CONROY: Good evening, everyone. It's great to be back in Washington DC where this week I'll be meeting with senior officials from the Trump Administration, members of congress and key Defence Industry leaders. 

While I'm here I'll also attend the Association of the United States Army Annual Meeting and Exposition, the AUSA Expo is North America's premier defence land power event and a crucial meeting point for leaders within the US defence industrial base, private sector and critical forum for promoting Australia's Defence Industry. 

I'll also meet with World Bank President Ajay Banga and other senior officials from the bank, and I'll take part in the AUKUS Defence Industry update, including engagement with US counterparts and military decision makers. 

The Albanese Government and the Trump Administration share a steadfast commitment to advancing our Defence Industry. Of course the US is our principal strategic partner, we are vital to one another's defence, security and economic prosperity and that of the region. 

The alliance, including through AUKUS, increases Australia's ability to protect its interests by providing access to world leading defence capability and technology, training and combined exercises. 

Our deepening force posture cooperation is making our interoperability second to none, sharpening our collective deterrence. We're investing in the US defence industrial base supporting the revitalisation and resilience of the US submarine production, and we are an indispensable intelligence partner deeply invested in joint capabilities. 

That commitment to a cooperative approach to security was demonstrated again today with the signing of a joint statement of intent between the United States Government, Lockheed Martin Corporation and the Australian Government on the production of guided weapons.

So today I'm announcing the signing of that joint statement, which is about deepening our relationship with the US but also underscores the Albanese Government's continued commitment to delivering on the strategic priorities of the 2024 National Defence Strategy. 

This statement recognises that Australia's guided weapons initiative will make a vital contribution to international security supply chains and increasing the combined industrial capacity of Australia and the United States. 

This joint statement signed today also recognises the strategic importance of uplifting Australian industry to manufacture GWEO. 

A foundational step is being delivered through our strategic partnership with Lockheed Martin Australia, starting with our commitment to commence the manufacturing of Guided Multiple Launch Rocket System missiles, or GMLRS, in Australia before the end of 2025. 

In addition to the joint statement today I'm also announcing further cooperation on the development of the precision strike missile, with the opening of a joint office in Huntsville Alabama. The dedicated facility will serve as a central hub for coordination between Australia and the United States on the development of the PrSM capability and will oversee its production and sustainment. 

The joint statement also acknowledges that for guided weapons manufacturing in Australia to be viable and sustainable production quantities will need to extend beyond the demand of the Australian Defence Force, and as identified in the Australian GWEO plan we intend to begin construction of a new high-rate production facility in Australia. 

The Australian weapons manufacturing complex will be flexible and scalable, expand global manufacturing capacity and reduce dependence on overseas infrastructure. 

Construction of the AWMC will be in addition to the Kongsberg missile factory in Williamtown that is already under construction. That will be manufacturing joint strike missiles and naval strike missiles. 

These sites in addition to our existing government‑owned contractor/operator munitions facilities at Benalla and Mulwala will enable Australia to manufacture munitions at scale, strengthening Australia's Defence Industry and support Australia's self‑reliance.

The Government's accelerated acquisition of long‑range strike capabilities under the Army's long‑range fires project and investment in arrangements with the United States and Lockheed Martin Australia will enable Defence to develop a more capable military force to defend Australia and its partners. 

These initiatives are underpinned by the Albanese Government's commitment of up to $21 billion over the decade to establish a sovereign Guided Weapons and Explosive Ordnance facility. This will boost our industrial capacity and support thousands of jobs in the Australian Defence Industry. 

We will begin manufacturing missiles this year in a sign of our increased commitment to deterring conflict and providing peace in our region. 

So, ladies and gentlemen, the signing today of the joint statement of intent with the US Department of War and Lockheed Martin in Washington DC marks a significant milestone in Australia's efforts to build a sovereign GWEO Enterprise. It also represents a deepening of our strategic partnership with the US and a shared commitment to building a resilient, interoperable and sovereign capability. 

I invite questions. 

JOURNALIST: Minister Conroy, can you give us an idea which officials from the Trump Administration you'll be meeting with while you're here? And are you expecting an update on the Pentagon's review of AUKUS? 

MINISTER CONROY: As I indicated in my media release, I'll be meeting with a range of senior Trump Administration officials. As is my normal course I don't advertise who I meet with or what I'll be discussing until after I meet with them. But we enjoy a high level of access to the Trump Administration and I'm confident that will continue in my trip here this week. 

JOURNALIST: When are we expecting an update on the AUKUS review? And will we have answers before the Prime Minister arrives here in Washington? 

MINISTER CONROY: Questions about the timeline should be directed to the US Administration, it's their review. It's a review that obviously reflects processes that we undertook when we came to power in 22 and the Starmer Government's own review. But questions about timelines are best directed to them. 

JOURNALIST: Senator Wicker said the AUKUS review was a distressing surprise to Australia. Is that how you would characterise it? 

MINISTER CONROY: I characterise it as something that new administrations do. We did it in 2022, the Starmer Government did it when they came to power. I'm confident that the AUKUS arrangement remains in the national interest of all three countries, it uplifts the industrial capability of all three countries, it adds to deterrence in our region. I think it's a good thing for Australia, I think it's a good thing for the United States, and I think it's a good thing for the United Kingdom. But I'll let the US review go through its course of action. That's the respectful way we treat our allies and partners. 

JOURNALIST: You mentioned the contributions to the US submarine industrial base that we're making. I think if memory serves we're due to commit another billion US dollars in this half of the year. Have we made that payment yet? 

MINISTER CONROY: Your understanding is correct; we haven't made that payment yet. We've made a billion dollars. The plan is to provide another billion dollars shortly. This is about uplifting the US industrial base that will free up Virginia‑class submarines to be transferred to us as part of the optimal pathway forward. This is complemented by the $30 billion we're investing in our own industrial base as part of the AUKUS program. 

JOURNALIST: Will remake that payment before the Pentagon's review is released or communicated to us, or will we wait for that to take place? 

MINISTER CONROY: I'm not going to get into the timelines of when we make these payments, but I'm ‑ suffice to say that we remain very confident in AUKUS and we remain very confident that AUKUS adds utility to all three countries and we intend to honour our commitments that we made under AUKUS. 

JOURNALIST: But we would consider paying another billion before the review is handed down? 

MINISTER CONROY: Again, we've been very clear about our commitment throughout the process, so we'll just see what happens over the next little while. 

JOURNALIST: Minister Conroy, next year we're due to give that update on the National Defence Strategy, do you anticipate that there'll be consideration going into that process of a decision to increase defence spending to best serve Australia's sovereign defence needs as part of that process? 

MINISTER CONROY: Well as the Prime Minister doubtless said, we constantly evaluate our defence spending against what defence capability is needed, and if the Department of Defence and principally the Deputy Prime Minister and I make the case that more capability is required, the PM said of course that will be given favourable consideration.

I make a couple of other points. We are increasing defence funding; we've given the largest peacetime increase in defence spending ever. We added to that with another $12 billion of investment in the Henderson announcement only last month, and we'll go through the planning cycle for the National Defence Strategy along those lines. 

JOURNALIST: But does that National Defence Strategy next year give you an opportunity to do something around defence spending? 

MINISTER CONROY: Well, the biannual planning cycle means that we respond to the change in strategic circumstances, and we'll always respond to the strategic circumstances that we face, and you can expect to see that reflected in the NDS and the associated funding underpinning that. 

JOURNALIST: On Alabama and the office there, how many Australians can we expect to be stationed there and what does that look like? 

MINISTER CONROY: Well it's a joint office to manage the development and sustainment of the precision strike missile which will be the premier land‑based strike missile in the world. We saw the first successful test firing of Australian PrSM as part of Operation Talisman Sabre in the Northern Territory a few months back, and that was only the second test firing by a crude platform ever, showing that we're a key part of the program. 

At the moment there'll be a few Defence personnel embedded there, we'll get you the exact numbers. That will grow over time as we are the only development partner for the United States with this program, and it's a very exciting project that will expand the strike capability of the Australian Army. 

Prior to the introduction of HIMARS and GMLRS and PrSM, the longest-range strike weapon of the Australian Army was 40 kilometres. With the delivery of PrSM we now have the capability to reach 500 kilometres, and when we receive PrSM increment 4 we have the ability to strike in excess of a thousand kilometres. So that's giving the Australian Army real strike length, strike power to deter conflict in our region.

JOURNALIST: The Prime Minister's here in a week. Any idea what gift he might have for the President? 

MINISTER CONROY: I'll leave that to the Prime Minister to do that. It's a poor guest that tells people what they're getting in advance at a gathering like this. 

JOURNALIST: I hate to ‑ I guess like the note to end it on, but no, I'll say something else. Has anyone raised with you from the US side concerns about the fact that Australia's AUKUS submarines won't be able to be equipped with nuclear warheads? 

MINISTER CONROY: I can honestly say no, that Australia's position on nuclear proliferation is very well‑known, and our position on AUKUS is that we are acquiring nuclear power but conventionally armed submarines. That has always been the plan, which is the plan, and I've had no one question or suggest that we should be doing otherwise. 

JOURNALIST: At the hearing that I referred to earlier the nominee said that he thought there could be common sense changes made to AUKUS. What was your understanding of what a common-sense change could be? Is that more money? Is that where the submarines are going to be built? Have you had ‑ gotten any detail about what they were referring to? 

MINISTER CONROY: Well, you're asking me to interpret the words of someone else. 

JOURNALIST: But has anyone else within the Defence system told you or did you ask the Pentagon what they meant by that? 

MINISTER CONROY: We'll continue to engage with the Pentagon, we'll see what comes out of their review. AUKUS is a living, breathing agreement that expands the industrial capability of all three countries and we're continuing to work on that. It's in the national interests of all three countries and we'll just see where it goes. But it makes Australia safer, it makes the United Kingdom safer, it makes the United States safer as well, and I'm confident that it will continue. 

Thank you very much, everyone.

ENDS