Television Interview, ABC Briefing

SUBJECTS: Visit to US; Joint Statement of Intent with US; AUKUS; Pacific policies; Middle East

Melissa Clarke: Prime Minister Anthony Albanese is just days away from his long awaited meeting with US President Donald Trump. Ahead of that discussion, Defence Industry Minister Pat Conroy is in Washington D.C. meeting with senior Trump administration figures and announcing the progression of a defence partnership which will see Australia set to begin producing guided missiles. I spoke to him as he stepped away from a congressional dinner in D.C. earlier. Pat Conroy, thanks very much for joining me on Afternoon Briefing.

Minister Pat Conroy: My pleasure, Mel.

Clarke: So, Australia is in the process of setting up domestic manufacturing of missiles in a co production process with the US can you explain for me the strategic objective behind this?

Conroy: Well, there are two strategic objectives. The first is self reliance and greater sovereignty in Australia where at the end of very long supply chains and both the COVID pandemic and the war in Ukraine have demonstrated that you need to be able to manufacture more defence equipment than we previously have. So, we've committed to building two missile factories in this country to equip the Australian Defence Force with long range strike to help deter conflict in our region. That's the first strategic objective. The second one is recognising that we've got a strong partnership with the United States who faces their own constraints and a large backlog of orders. So, by building factories with excess capacity beyond what we need, we've got the opportunity to be a second supply source for the United States and other partners, which means more jobs for Australians, more security for our ally and greater option options for the Australian Defence Force.

Clarke: So, I assume that there's some profit to be made in selling missiles. So, there's an economic objective as well as the defence one?

Conroy: It is. These facilities will employ hundreds of Australians in some of the most high-tech jobs possible. The first factory is being built right now in Williamtown near the RAAF base and will be commencing construction of a second one as well. And this is about more jobs for Australians, but more security for Australia and giving the Australian Defence Force access to the latest defensive weapons in a way that provides more independence and sovereignty.

Clarke: Can you explain to me how it provides more independence? Because if this is being done in concert with the US and the idea is to be able to sell the excess production to the us, what capacity is there for Australia to operate these facilities independently or sell them to other countries?

Conroy: Well, we will be building the missiles ourselves rather than relying on long supply lines. So, the first factory being built is the first that builds these missiles, the joint and naval strike missiles, the first factory outside of Norway, so we'll be building them for our region. And then the second factory will be the first factory outside of the United States building what, what's called the guided multiple launch rocket system. So, we won't be relying on imports for these missiles, so it gives us more sovereignty and ultimately we'll have control of who we sell them to. But the logical partner for the GMLRS factory is obviously the United States, since there's a 14,000 round backlog. These weapons are being used very effectively by Ukraine in their brave resistance to Russia's invasion. So, this, this is a definition of a win win. We get more independence by building missiles that we use in Australia and more jobs. But we also contribute to our alliance. And this is an example of a shift to a co design, co production, co sustainment model. So, our defence.

Clarke: Can I just, just clarify to be clear, so we can choose ultimately who we sell them to or does the US need to approve those sales?

Conroy: Well, one of the missiles is partnering with a European company, the other one with the US and so there may be conditions on the licences when they transfer to Australia, but we have stringent export controls and ultimately we have control on who we export these weapons to.

Clarke: I want to ask you more broadly about the defence relationship between Australia and the US. Obviously, the Pentagon is finalising its review of AUKUS. You're meeting with a lot of senior defence officials on this trip. Tell me, what's the level of enthusiasm you're detecting amongst the people you're speaking to about AUKUS?

Conroy: Strong enthusiasm in both the Trump administration and with Congress. Congress is a co-equal branch of the government and they're very enthusiastic about AUKUS. And I've had good engagement with the Trump administration, obviously being respectful and giving them space to conduct their review and not prejudging it. But I've had very successful meetings with senior members of the Trump administration about how AUKUS is hitting every milestone, how it is contributing to giving the Australian Defence Force access to the best and most advanced equipment in the world, but also supporting US efforts to upgrade their submarine force and solve some of the challenges they have and I presume your.

Clarke: Advancing this missile co-production, looking at further payments into the submarine production line, these are all things that presumably the government is confident will sell AUKUS in a good light to the President?

Conroy: Well, we're confident in AUKUS because it's in the national interest of all three countries. The AUKUS agreement has survived changes of government across all three countries. We've had changes of government in the United States, Australia and United Kingdom. And AUKUS continues obviously giving space for the current review by the Trump administration. But it's firmly in the national interest of all three countries to do this. This is about deepening our industrial bases to be able to produce nuclear powered but conventionally armed submarines in four shipyards instead of three, including the one in Adelaide. So, this is about increasing the number of nuclear-powered, conventionally-armed submarines in the Indo Pacific, which is all about providing more deterrence and making the region safer and avoiding war.

Clarke: Now, have you had any discussions about Australia's security deals with Pacific nations in any of your meetings or has it been more narrowly focused on the defence? Industrial capacity is certainly a key focus for you.

Conroy: I've had good conversations on that as well. I've been briefing representatives of Congress and the Trump administration about our Pacific policies, how we're using every tool of statecraft to be the partner of choice for the region. I briefed them about our historic put treaty with Papua New Guinea, as well as our treaties with Nauru and Tuvalu. And there's a lot of interest in that from meeting the Commandant of the Coast Guard to the US Navy Secretary to members of Congress. And I'll be having a panel discussion with the Congressional Pacific Caucus tomorrow to discuss how we're working in the Pacific to deepen our relationships with those countries that are part of the Pacific family.

Clarke: Do you get the sense from the Americans you're speaking to that it's their expectation that Australia's response need to take responsibility for securing those relationships, or do they view the US as having a role in having those kind of bilateral relationships too?

Conroy: Well, the US has a strong relationship with many countries in the Pacific. It's obviously very close to the compact states in the North Pacific and it's got strong relationships with the rest of the Pacific. But they have been interested in our experience as we use groundbreaking approaches to negotiate these treaties, listening to the priorities of our Pacific partners and acting on them. And they're really interested in us using all tools of statecraft, not just traditional ones like foreign aid or policing cooperation, to sport, to trade, to the Pacific labour scheme, to permanent migration. And they've been really interested in how we're doing that to deepen our relationship with the Pacific, which is in the interest of both Australia, but also our Pacific partners. And I'll also be having a breakfast meeting with Pacific ministers on Thursday, which will be a really opportune moment to discuss their experiences as well.

Clarke: That will definitely be interesting. Before I let you go, Pat Conroy, I do need to ask you about the Middle East, where security issues there sort of overlay a lot of defence issues at the moment. What's the government's view on how the ceasefire is progressing? We're seeing some issues around return of hostage remains, limiting the flow of aid. Does the government still consider things to be on track?

Conroy: Well, we obviously welcome the ceasefire and we applaud the efforts of President Trump and everyone else involved to secure it. Obviously, it's a very testing process and we just urge all parties to exercise restraint and to abide by the terms of the ceasefire. I think that's the interest of every partner in the Middle East and quite frankly, the whole world. And so we're just hoping and urging everyone to follow the processes agreed to, because I think it's in everyone's interest for that ceasefire to continue on the path to a permanent peace that includes a two-state solution that respects secure borders for both Palestine and Israel.

Clarke: Is this going to be something that the Prime Minister will discuss with Donald Trump when they meet next week?

Conroy: Look, I'm not going to get ahead of that and predict what the two leaders will discuss. That's for them. But I'm expecting a very free ranging discussion about all the challenges that face the world and the role of both Australia and the United States in being good global citizens and resolving them.

Clarke: Alright, well, we'll stay in touch. Pat Conroy, thanks very much.

Conroy: Thanks Mel. Have a great afternoon.

End