Joint Press Conference, Melbourne

SUBJECTS: Australia-Japan relationship; Mogami Memorandum

RICHARD MARLES, DEPUTY PRIME MINISTER: Well, thank you, and it is such a thrill and a pleasure to be able to host my good friend, Minister Shin Koizumi to Melbourne here at Station Pier, but also to be hosted by my good friend on this ship, the JS Kumano, this afternoon. This is the third time this year that Minister Koizumi and I have met, which reflects how important our relationship is, and particularly in a context of a very challenging global environment. As I've said on a number of occasions, there is no country in the world with whom we have a greater strategic alignment than Japan. That in turn is underpinned by complete trust, and the value of that is particularly felt given the circumstances in the world today. Today we are announcing that contracts have now been signed for the provision of the upgraded Mogami class frigates to the Royal Australian Navy as our new general purpose frigate with the first of those to be delivered to Australia in December of 2029. And the signing of the Mogami Memorandum, which we have just done now, will deepen defence industry cooperation between our two nations specifically in the development of this critical capability for the Royal Australian Navy and also for Japan. And can I take the opportunity to just express how important is the defence industry cooperation between our two countries, including reducing the barriers in terms of defence industry cooperation so that we can create a seamless defence industry environment between our two countries. And we very much appreciate the direction that Japan has taken to allowing this to occur, to reduce barriers in respect of defence industry cooperation, because it will be absolutely fundamental to delivering this capability for the Royal Australian Navy. We are aboard the JS Kumano, and in respect this specific ship, over the last few months, 23 sailors in the Royal Australian Navy have had the opportunity to ride aboard the JS Kumano and experience first hand the excellence of this capability. This ship has been participating in Exercise Kakadu, which is the largest maritime exercise that our country undertakes, and it is in fact the largest maritime exercise in the Southern Hemisphere. We announced the Government's response to the Surface Fleet Review just over two years ago, which was the first moment that we articulated the need for the future of the Royal Australian Navy to have a new general purpose frigate. In just two years we have gone through the process of a tender and ultimately choosing the Mogami class frigate as our future general purpose frigate. We have now signed contracts. We will see the first of these frigates come to Australia in 2029, and in the early 2030s, the general purpose frigate, the Mogami class, will be the backbone of continuous Naval shipbuilding in Western Australia. Today we're also announcing that we have signed an implementing agreement in respect of the sharing of sensitive data in relation to the Ghost Bat, and that will be very important in terms of defence industry cooperation on this really significant platform. And we've also signed a letter of intent around greater cooperation in respect of defence cyber, a fundamentally important defence domain of the future. Shin, it is an absolute thrill to be aboard this beautiful ship with you to welcome you here to Melbourne, and you are a very, very honoured guest to our country.

KOIZUMI SHINJIRO, JAPAN’S MINISTER OF DEFENSE: Richard, I'm very thrilled to be on board in your hometown, Melbourne. I must apologise that we came late and we are running late, I'm sorry. We are very sorry. Particularly, I have to apologise to the service members whose [indistinct] here, it must be very cold, so I'm very, very sorry for keep you waiting. I hope you allow me, because we have a very passionate discussion so that we lost the track of time, and that's why we came here late. Early on, Deputy Prime Minister Marles and I signed a Memorandum of Cooperation concerning Australia's general purpose frigate project based on base operated Mogami class frigate between the Deputy Prime Minister and the Minister for Defence of Australia and the Minister of Defense of Japan. This Memorandum of Cooperation reaffirms our shared commitment in written form that Japan and Australia will continue to work closely together involving both public and private sectors to make a steady progress in the Royal Australian Navy general purpose frigate project. With the introduction of Japanese Naval vessels into the Royal Australian Navy, a major step is finally being taken to elevate our bilateral defence cooperation to a greater height in this year marking the 50th Anniversary of the Japan Australia Treaty of Friendship and Cooperation. What has made it possible was the dedicated efforts and mutual understanding of all those involved in this historic project. Once again I'd like to express my deep respect and sincere gratitude to everyone involved. Prior to this ceremony I held a Defence Ministerial Meeting with Deputy Prime Minister Marles under the framework for strategic defence coordination. That was our second meeting this month alone. As both countries are facing an increasingly severe security environment, closer coordination at the highest level is becoming even more important. During the meeting I received a briefing on Australia's new National Defence Strategy, which was released just the day before yesterday, and then we compared notes. In Australia's new National Defence Strategy, Japan continues to be positioned as an indispensable partner in all new areas of cooperation, such as intelligence cooperation is included. This year presents an excellent opportunity for Japan and Australia to further enhance strategic alignment and to make our defence cooperation even closer as both countries are revising our respective strategic documents. And then as we always do, we updated on each other's assessment of the regional affairs, including the situation in the Middle East, and had a discussion on the shared challenges we are addressing together, including new way of warfare, collaboration with like minded countries and defence industry cooperation. By the way, JS Kumano, on which we are gathered now, is characterised by its reduced manpower requirements, allowing it to be operated by just 90 personnel.  This feature was considered as one of the decisive factors in Australia's action. One of the many things we have in common between Japan and Australia is this strong interest in manpower saving and advanced capabilities. Having said that, no matter how far manpower saving and amount technology advance, people to people connections will always be important. That is proven by all of us here together on board JS Kumano, including Japanese Maritime Self Defense Force personnel and Royal Australian Navy officers serving as ship riders who have been on board the JS Kumano all the way from Yokosuka, the industry representatives involved in building the general purpose frigate and the defence authorities of Japan and Australia. It all symbolises the unity of public and private effort between Japan and Australia.  I firmly believe that defence cooperation will be truly deepened with such people to people connections between Japan and Australia, the successful conclusion of contract just eight months after the Australian selection of a Mogami was possible precisely because of this people to people connections. Together with Richard, I will demonstrate that at the forefront. I will take this splendid view to my heart, the view symbolises the people to people connections on this momentous day. I will also renew my determination to further advance Japan Australia defence cooperation, together with Richard, based on our passionate friendship. Earlier Dr Ito mentioned the 100 anniversary, I was talking about this with Richard, and we decided to stay healthy until then. Thank you.

DEPUTY PRIME MINISTER MARLES: So I think there are some opportunities for questions from the media, and I think the way we're going to do this is alternate three questions a side from the Australian media and the Japanese media. So I might start with the Australian media, and Stephen Dziedzic from the ABC.

JOURNALIST: Thanks, Minister. If I could ask obviously the contracting sign today covers or the sign recently covers three frigates but there's still a plan for a further eight or so. Minister Marles, is the Australian Government still adamant that those eight future frigates will be built in Australia, and Minister Koizumi, could I ask, please, if the Australian Government were to reach the conclusion that wasn't feasible and it would like more frigates to be built in Japan, would Japan and the Mitsubishi Heavy Industries be willing   or would you be willing to countenance that possibility?

DEPUTY PRIME MINISTER MARLES: So our intention is very much to have the first three of the frigates built in Japan, and then to move the build to the Henderson Defence Precinct in Western Australia. And that would see the commencement of that build in the early 2030s, and we are confident that the development of the Henderson Defence Precinct is on track to enable that to occur. Last year we announced the $12 billion down payment on the development of the Defence Precinct. We're working very closely with the Western Australian Government on that, and as I say, we're confident that it will be in place such that the fourth of the frigates will be able to commence being built in Western Australia, which as I said earlier, will be the backbone of continuous Naval shipbuilding in WA.

MINISTER KOIZUMI: Well, I'm not quite sure if the question was intended for me, or for Dr Ito, and I'm not sure if Dr Ito wants to answer to that question, but I will make a quick answer. And as Dr Ito expressed on time, and Japan and Australia will continue to work closely together to make the scheduled   the delivery of the first ship in 2029 and we'll renew our cooperation from here. So I believe the Mogami Memorandum which we just signed marks the new beginning for us and for our commitment. I believe there's no limitation on the possibility of the Japan Australia security cooperation following Mogami, so I will keep closely working together with you, Richard. Please have an interview with Dr Ito if you would like to know other details. Thank you.

JOURNALIST: I have a question for Defence Minister Koizumi. Japan is delivering its cooperation with Australia as a country which is kind of very much like an ally. So when it comes to stabilising the Indo-Pacific, what do you think is the role or power that the two countries are going to play? At the same time you are moving on to a new stage following the [indistinct] transfer to further Australia defence cooperation with like minded countries. So what do you think is the importance or significance of Australia bilateral relations of all this new stage? And the third question is that the Japanese Government is planning to revise three principles on defence equipment, and defence equipment to transfer and implementation policy. So how are you going to utilise defence equipment and transfer to further expand cooperation with Australia or its ally New Zealand, and what is your view on that or future course to take about that going forward, please?

MINISTER KOIZUMI: Thank you for your question. For Japan, Australia is a special strategic partner in the Indo Pacific region, which shared strategic security interests as well as fundamental values, as the common ally of the US. is becoming increasingly severe. Japan and Australia will expand our cooperation in all kinds of areas to enhance collective deterrence and serve as a center pillar of collaboration with like-minded countries, to strengthen cooperation with the US and other likeminded countries. Through such initiatives, Japan and Australia will contribute to peace and stability in the region. With the Royal Australian Navy introducing general purpose frigate based on upgraded Mogami cross frigate, interoperability between Japan and Australia will be significantly improved. In addition, it has broader significance, such as reinforcing shipbuilding and a sustainment base in the Indo-Pacific region, as well as enhancing Japan-Australia, supply chain cooperation. We are already hearing about the needs and expectations for Japan's high technology defence equipment expressed by various countries, including New Zealand, which has strong interest in the Mogami class frigate, the revision of Japan's defence equipment and technology transfer framework will enable us to promote transfers, which meet the needs of like minded countries, and allow us to strengthen the details and response capabilities. We will continue to promote transfer of defence equipment and technology, considering the needs of individual country.

DEPUTY PRIME MINISTER MARLES: Ollie Haig

JOURNALIST: Firstly, to the Defence Minister. Obviously, how does this deal that's been announced today instil any confidence in Australian manufacturing, considering we already make frigates in Australia, namely in Adelaide. And is the federal government open to the Japanese making more beyond the three, if actual isn't ready in WA. And to Minister Koizumi? Is Japan open to making more beyond the three, if Australian manufacturing is not ready.

DEPUTY PRIME MINISTER MARLES: So we see the building of the Mogami class in at the Henderson Defence Precinct in Western Australia as being the backbone of continuous naval shipbuilding in WA. When we announced this as part of our response to the service fleet review two years ago, it was the first time ever that an Australian government has committed to continuous naval shipbuilding in Western Australia, and in that sense, it represents An absolute vote of confidence in Australian industry. And in all the ships that we've built in Australia, we have always partnered with an overseas prime, HMAS Brisbane, a Hobart-class destroyer, which was built in Adelaide, where Navantia, a company out of Spain, was the prime. Our Anzac-class frigates were built by TKMS not far from here at Williamstown, which was a German prime. So we are very excited about working with Mitsubishi Heavy Industries as the prime in this instance, to gain the benefit of their industrial expertise and their design in this ship.

MINISTER KOIZUMI: As I said earlier, we are now working on the revising that the framework of the transfer of defensive equipment and technology - particularly for Mogami class frigate. As I said, there are some countries such as New Zealand which has interest in this type of frigate. I'm getting the sense that you're very even Australia media is very interested in Mogami-class frigate project. Because the first milestone we are looking at is the delivery of the first ship in 2029. But even at this stage, are you asking about the fourth ship, so that I believe that is the proof of your high level of interest. So I'd like to disseminate your strong interest in this, and I'd like to make use of your interest in developing our security policies, and I hope other countries and public and can make a positive assessment of what we are doing. Then, of course, at the companies, including Mitsubishi Heavy Industry, will build ships. So we need to talk with all the people and companies involved, but between Richard and I, we'd like to maintain this commitment.

JOURNALIST: This is a question for both defensive, Japan and Australia is placing a great emphasis on the relations with the United States. On the other hand, the United States is shifting its focus to the Western Hemisphere of the globe. So what do you think about the bilateral cooperation or multilateral cooperation in the in the Pacific region, with no involvement of the United States. Going forward?

MINISTER KOIZUMI: First of all, as I said earlier, Australia is our partner, which serves as a centre pillar of the collaboration with likeminded countries. And in terms of the cooperation with Australia, it will continue to be important. In fact, we already have the framework of the Cooperation between Japan, US and Australia, then also, together with other countries such as US, Japan, Australia, Philippines, and also US Japan, Australia and India, and such as what we call “quad”. And I'd like to keep talking with Richard about any possible cooperation, including Japan and Australia. I believe there are still opportunities and possibilities for us to cooperate with other likeminded countries. So I will commit myself to the discussion with Richard and to figure that out the best way to work together.

DEPUTY PRIME MINISTER MARLES: So firstly, it is profoundly important that America remains present in the Indo-Pacific, and we very much welcome America's commitment through the National Security Strategy and the National Defense Strategy last year to the Indo-Pacific and the importance that America places upon it. At the same time, Australia and Japan are two countries which are in the Indo Pacific, and we share values. We have complete trust, and we have a deep strategic alignment. And there has never been a more important time for our two nations to cooperate. We've said a number of times that this year we celebrate the 50th anniversary of the Basic Treaty on Friendship and Cooperation, and I really feel like those last 50 years have been the pathway leading to this moment where our two countries have the opportunity to work so closely together as the very best of friends with shared alignment and deep trust, and that is how we feel.

DEPUTY PRIME MINISTER MARLES: And finally, on the Australian side, Jordan McCarthy of The Herald Sun.

JOURNALIST: Thank you, ministers. You’ve actually done such a great job, so far, you've ticked all my boxes. So I'm going to defer my question to Stephen at the ABC.

JOURNALIST: Thanks, Ministers. Can I ask Minister Koizumi? Japan has significantly relaxed its Defence export restrictions, or is moving to do so. Unsurprisingly, China's expressed, quote, grave concern over this move. Can you explain why Japan has taken this step? And what explanations are you making to other countries, obviously not including Australia in this regard, but to other countries in the region who might be receptive to the arguments that China is making on this front. And to Minister Marles, I realise 2029 is close to tomorrow in defence procurement terms. Nonetheless, some analysts have said, given the stark reality of the strategic environment which has been outlined, it would be preferable to push for the first Mogami to come even sooner than 2029,  did the government contemplate pushing MHI for that would not have been possible, was it contemplated? Thank you.

MINISTER KOIZUMI: Thank you for a question. I recognize you named to China. So, I will answer your question first.  I met with Richard on the sidelines of the ADMM-Plus, which was held in Malaysia. On that occasion, I also had a bilateral meeting with my Chinese counterpart, Minister Dong Juan. I have maintained a consistent position, my consistent thought, which is that since then and now, which is that, because there exists difficulties and challenges between Japan and China, it is all the more important for us to continue dialogue. Japan does not shut down the communication channels because there exists differences. You also asked about the revision of the framework of the transfer of defensive events and technology. As I said earlier, added some countries, expressed their strong interest and needs, such as New Zealand and I’m also looking to the countries such as Indonesia and the Philippines, if the situation allows. I'd like to make sure everyone is aware that their countries who are taking what Japan's initiative positively. What is important is that Japan has been doing all of this to increase our deterrence capabilities, and we are working on our security policies in order for the freedom of the Indo Pacific, as well as the rule of law, then also not allow to happen the war or conflict.

DEPUTY PRIME MINISTER MARLES: Well, firstly, on the first part of your question, Stephen, can I just say that from an Australian point of view, we really welcome Japan's relaxing of its export defence controls with trusted partners like Australia. Japan is an industrial powerhouse, and it offers so much opportunity for Australia and the development of our own defence industry as the Mogami project represents, and the relaxation of these controls is going to be really important to developing the seamless defence industrial base we will need to deliver the Mogami project. In respect your second question, you know the best time to have been planning for new ships in the Royal Australian Navy would have been 10 or 15 years ago, but you inherit what you do, and you work with that. But the second best time is to act right now. And the timeframe that we've announced is the fastest acquisition of a surface combatant into service in the Royal Australian Navy ever. And so this is a very rapid timeframe. We've announced that because of the very need to have a capability in service as quickly as we possibly can.

ENDS