Chapter 3

APPLYING AUSTRALIA'S MILITARY POWER
| IT HAS ALWAYS BEEN THE AUSTRALIAN WAY TO CO-OPERATE WITH FRIENDS AND ALLIES. |
In previous Updates we identified global terrorism, WMD proliferation and fragile states as major concerns for Australian security. We know these developments continue to shape Australia's environment, and Defence must respond to the security concerns they present. We also work to help the major powers in our region maintain a constructive dialogue with each other. Defence plays an active part in regional security dialogues with friends and neighbours.
INTERNATIONAL SECURITY PARTNERSHIPS
It is becoming hard to separate the global, regional and local dimensions of security threats. Australia's strategic interests can often be affected by events geographically far away. But partly because of geography, and partly because of limited resources, Australia mostly chooses to work in coalition with friends and allies when our interests are affected in places beyond our immediate area of paramount defence interest. It has always been the Australian way to co-operate with friends and allies. Whatever the military task, be it detection, deterrence, prevention, response, or reconstruction, we need partners to help promote our security interests on the wider world stage. Right now, that means we must work hard to boost our security partnerships, reinvigorate those already established, and explore opportunities for new partnerships to help us better deal with today's security problems.
AUSTRALIA'S ROLE AS A SECURITY LEADER
Defence, at government direction, has increased efforts to help stabilise dangerous situations in fragile states. Our approach is to 'lead, shape and engage': that is, we aim to be the leading power in our immediate region in bringing together military coalitions that will shape positive security outcomes. As much as possible we will do this by engaging local communities in affected countries and working with our security partners. It is important that we try to build coalitions of friends and neighbours in our region. Australia's strategic leadership benefits greatly from our established partnerships in the region, particularly with New Zealand and the island states of the South Pacific.
Capacity building remains a focus of our efforts in the South Pacific. We are encouraging nations to establish more co-operative approaches to security, especially in maritime surveillance. We are helping regional security forces build the skills and professionalism, and the development of appropriate civil-military relations, to enable them to provide effective and appropriate responses to national security challenges. For example, we provide infrastructure assistance to PNG and ADF advisers to the PNG Defence Force. We also advise PNG on weapons security and control, organisational improvements and budget, expenditure and financial management. In the South Pacific, our defence cooperation programme offers training opportunities in areas ranging from English language skills to engineering, infantry and command. We also sponsor a range of multilateral exercises and activities, including humanitarian and disaster relief exercises, maritime surveillance, and communications projects. Through our efforts we aim to raise skills and awareness and so the ability of regional nations to work with us. That also helps develop a more cohesive response to security issues within our immediate region, in partnership with our friends and allies.
Still, our approach - particularly in Solomon Islands and East Timor - needs a lot of patience. Progress is not assured, and often depends on a willingness to bring together commitments to change the political, economic, social and security situation.
Positive change takes time to gain momentum and to offer tangible and sustained benefits for local populations. The path will not always be smooth or assured, but by paying attention and committing to security and stabilisation efforts over the long term, we will build a more stable environment in Australia's near region.
We expect Australia will often be called on to act as a security leader within our immediate neighbourhood. We should not plan to rely on the security capabilities and resources of our friends and allies to assist in military operations in our immediate region. In many cases Australia will be called upon to lead other countries, and to provide them with key military resources - like logistic support and air and sea transport that will make it possible for smaller countries to participate in regional security missions. A strong network of regional defence cooperation links is an important foundation for successful regional coalition operations.
AUSTRALIA'S ROLE AS A SECURITY CONTRIBUTOR
Australia has for many years been an important contributor to security operations around the world. We aim to make sure the ADF operates where it can add the most practical value to missions that are important for global stability and our national interest. We work with allies and partners to achieve mutual security goals. The forces we offer to international operations need to be balanced against the demands on other ADF commitments and the impact they will have on our defence capabilities as a whole. Some elements of our forces will offer greater complementarity with partners than others. A key consideration is to make sure our contribution achieves the best effect given the circumstances, threats and opportunities. So while the Asia-Pacific and the Middle East are both vital to Australian interests, our Defence involvement in each differs substantially.

| WE EXPECT AUSTRALIA WILL OFTEN BE CALLED ON TO ACT AS A SECURITY LEADER WITHIN OUR IMMEDIATE NEIGHBOURHOOD. |
In the Middle East, for example, we have committed substantial Defence resources. In Afghanistan, the ADF is working with NATO forces - a Dutch contingent - as part of the International Security Assistance Force. An ADF Reconstruction Task Force is helping to rebuild and improve local infrastructure, from schools to hospitals, roads and bridges. In a dangerous theatre of war, reconstruction helps to bring hope and promote stability by strengthening local capacity and increasing security. This substantial Australian contribution complements the efforts made by NATO and US forces to strengthen a weak state, disrupt terrorist operations and bolster security. The Government believes an ongoing commitment to Afghanistan is important. The Government believes it is vital we stay the course in Afghanistan. Retreat now would weaken Afghanistan's chances for democracy, strengthen terrorism and make it look as though we were not serious about our own security.
In Iraq, Australian forces were dispatched to uphold Australia's support for long-standing United Nations Security Council resolutions against the danger of Iraq regaining a WMD capacity. This reflected a fundamental Australian and global security concern. Our forces are now operating with a coalition of allies and partners that have a common interest in helping build a stable Iraq following the fall of Saddam Hussein's regime. Australia will continue to honour our obligations to the Iraqi people, and help them in building a more stable future. Defence is heavily focused on helping to build the capacity of the Iraqi Security Forces, so strengthening internal security, protecting the sovereignty of Iraq and aiding the prospects for political reconciliation.

| WE HAVE A VITAL INTEREST IN AMERICAN POWER. AMERICAN
PURPOSE AND AMERICAN RELATIONS WITH THE OTHER POWERS OF OUR REGION. |
Defence will continue to participate in multilateral operations with allies and partners. The Government will target its contributions such that they have greatest effect, given the inherent constraints on our force size and capability. Defence will continue to develop more security partnerships and engage in activities supporting Australia's national interests locally, regionally and globally.
THE US ALLIANCE
Our alliance with the United States will remain Australia's most important strategic relationship because we share many common values and many security interests, and have a similar strategic outlook. We are also prepared to participate, share risk and contribute to the overall security burden. The alliance provides our military forces with added reach: it deepens the ADF's capabilities and broadens our strategic knowledge. The alliance enhances the 'hard' (military) power the ADF brings to bear and the 'soft' (diplomatic) power we bring to the table. It complicates the planning of any potential adversary. We have a vital interest in American power, American purpose and American relations with the other major powers of our region.
Militarily, we obtain greatest effect by working with allies. While the United States will remain the predominant power in the region for at least a generation, and probably beyond, other countries in the Asia-Pacific are increasing in strategic importance. It is fundamentally important to Australia that the United States continues to be outward-looking and positively involved in the Asia-Pacific because the United States is still the key factor in regional stability.
Qualitatively, our alliance with the United States continues to deepen and broaden, with both partners increasingly focused on mutual interests, military integration and interoperability. The closeness is shown by our long-standing cooperation on intelligence, surveillance and reconnaissance. New protocols have allowed an increased sharing of information and personnel exchanges. In coalition missions ADF personnel have been given full operational control of US forces. Australia and the United States continue to explore technologies and strategies for ballistic missile defence, space cooperation and intelligence, surveillance and reconnaissance, and are working to enhance acquisition, logistics, and research and technology issues.
| NO OTHER COUNTRY MATCHES THE RANGE AND QUALITY OF DEFENCE ENGAGEMENT THAT WE HAVE WITH SOUTHEAST ASIAN NATIONS. |
LONG-TERM RELATIONSHIPS
Australia has long pursued its security interests by maintaining security partnerships with regional friends and neighbours. Building security partnerships and engaging regional states in defence and security dialogues helps to reassure states and offers a means by which potential problems can be resolved. Over the past two years, Australia has formalised and strengthened some key security relationships. For example, we have concluded the Australia-Indonesia Agreement on the Framework for Security Cooperation, signed the Australia-India Memorandum of Understanding on Defence Cooperation, and, most recently, joined with Japan to make the Australia-Japan Joint Declaration on Security Cooperation. We have also deepened other long-standing relationships through the Trilateral Dialogue with the United States and Japan, and the Australia-United Kingdom Ministerial (AUKMIN) talks.
New Zealand is a close and longstanding security partner. Bilateral defence relations are underpinned by the Closer Defence Relations agreement (CDR). A key objective of CDR is for both countries to work together in combined and joint military operations. Interoperability between the two defence forces has been enhanced through a range of engagement activities, particularly for operations in our region.
Close to home, the Australia-Indonesia Agreement on the Framework for Security Cooperation was signed in November 2006. This agreement is the culmination of efforts by both countries to address common concerns such as terrorism, people-smuggling and illegal fishing. The treaty underscores the importance of defence ties and our efforts to revitalise those ties over the past few years.
The recent Australia-Japan Joint Declaration on Security Cooperation signed by the Prime Minister on 13 March 2007 is part of a developing regional security architecture. It signals that Japan has decided to take up more responsibilities as a security partner, and reaffirms Japan's status as one of Australia's indispensable partners in the region. The declaration formalises a security dialogue that has been under way for many years. The inaugural Japan-Australia 2+2 Ministerial meeting in June 2007 discussed key regional security issues and ways to further strengthen the bilateral relationship.
Australia's strategic engagement with China has been limited to date, but it is growing at a pace that recognises our substantial shared interests in regional security. We maintain a valuable dialogue with China and look forward to expanding the relationship at a pace comfortable to both countries.
Australia and India share a common interest in enhancing regional peace and security. In March 2006, the defence relationship took a significant step forward when the Prime Minister signed the Australia-India Memorandum on Defence Cooperation. Our defence relationship has a natural focus on maritime security while cooperation on counter-terrorism builds on our common interests and experiences in this area.

| THE ADF HAS A LEVEL OF REACH AND THE CAPABILITY TO SUPPORT OVERSEAS OPERATIONS NOT POSSESSED BY OTHER GOVERNMENT AGENCIES. |
Australia's long-standing defence relationship with the United Kingdom remains a valuable strategic asset. Our close, often combined, participation in conflicts and wars as well as our intelligence-sharing arrangements show that we have overlapping strategic interests. Australia's defence relations with the United Kingdom enhance our strategic and operational reach and our ability to defend key national interests.
The Five Power Defence Arrangements linking Australia with the United Kingdom, New Zealand, Malaysia and Singapore continues to make a substantial contribution to regional stability as do our bilateral defence relations with many Southeast Asian countries. These relationships represent a significant strategic asset. No other country matches the range and quality of defence engagement that we have with Southeast Asian nations. Our defence ties go back many years. We regularly engage through high level contacts, dialogue, exercises, training and education, and personnel exchanges. These activities serve to improve our access to decision makers, enhance our mutual understanding, and improve the capacity of our defence forces to work together. In particular, they assist regional defence forces' capabilities in areas that matter to us, such as counter-terrorism, maritime security, governance, peacekeeping and disaster relief. The Status of Forces Agreement signed with the Philippines in May 2007 is indicative of our strengthening cooperation in these areas.
In the post-Cold War era, NATO is developing its links with global partners, such as those working in the International Security Assistance Force in Afghanistan. Australia has had valuable cooperation with NATO while not being part of that alliance. More recently, Australia and NATO have expanded this engagement to include practical cooperation on terrorism, WMD proliferation and on assisting weak states.
WHOLE-OF-GOVERNMENT RESPONSES
The term 'whole-of-government' is a way of describing the increasingly close cooperation that takes place between Defence, Australia's intelligence agencies, State and Federal police, the Department of Foreign Affairs and Trade (DFAT) and other agencies involved in internal and external security. Australia's whole-of-government effort was a major theme of the 2005 Update, and it continues to grow for two reasons. First, contemporary security challenges are complex and require comprehensive responses drawing on all facets of Australia's national power. Second, we have seen in East Timor and other places that the stability an ADF mission can provide will not last in the long term unless ways are found to create economic growth, improve the quality of government and build strong communities.
We expect that the ADF will be involved in many whole-of-government operations in coming years by providing on-the-ground stabilisation missions as needed, or by providing specialist support including military transport and logistic supply. But the long- term deployment of large forces is expensive, both financially and in terms of limiting our options for other ADF missions.
The ADF has a level of reach and the capability to support overseas operations not possessed by other government agencies. Defence can provide this support so that other agencies can do important tasks overseas. Strengthening nation-states and responding to humanitarian disasters requires a wide range of expertise in fields like policing, governance, economics, engineering, administration, health and education. Non-government organisations such as churches, charities, voluntary and youth groups also do vital work to help strengthen security in countries where government structures and services may be weak. Other government agencies are often better placed than Defence to build the right community relations. Defence will continue to co-operate closely with the Australian Federal Police (AFP), DFAT and AusAID on regional stabilisation missions.
Counter-terrorism concerns are also at the forefront of security initiatives. Defence is working closely with Indonesia and the Philippines to build stronger networks and counter-terrorism capabilities. Cooperation with Indonesia is a high priority for Defence, particularly in the areas of terrorism, border security and intelligence exchanges.
Defence is also an active participant in the Proliferation Security Initiative, a commitment by over 80 nations to impede or disrupt illegal trade in WMD to both state and non-state groups. Defence helps to plan and work to maintain the capabilities needed for WMD interdiction through involvement in regular PSI exercises. The ADF provides naval and air interdiction capabilities, working closely with DFAT, law enforcement, Customs and intelligence, and jointly with PSI partners.
Defence's role is evolving also into a range of domestic security tasks dealing with 'non-traditional threats', such as pandemics, natural disasters and threats to national sovereignty in the form of illegal immigration and illegal fishing. While the States and Territories have increased funding in the area of counter-terrorism Defence has unique capabilities that may need to be deployed to meet such threats. Since 2001, the Government has committed more than $1.3 billion to enhance Defence's domestic security and counter-terrorism capability. The Border Protection Command works closely with key agencies including Customs to co-ordinate and respond to emerging offshore incidents, and to protect Australia's borders and critical infrastructure. Defence works closely with health authorities and state governments as a supporting agency to prepare for the possibility of a major pandemic. The ADF also plays an instrumental role supporting civil authorities in Government security operations at major events, such as the Commonwealth Games and Asia Pacific Economic Cooperation (APEC) meetings.

| AN INTEGRATED FORCE...CAN RESPOND MORE RAPIDLY, PRECISELY, AND AGILELY TO CHANGES IN THE STRATEGIC, OPERATIONAL AND TACTICAL ENVIRONMENTS. |
A JOINT AND INTEGRATED ORGANISATION
The term 'jointness' refers to the way the three Services - the Army, Navy and Air Force - work together on operations. (The ADF is moving from one form of 'jointness' where the Services work together but do so as three distinct groups to another where the Services retain their individual identity, culture and expertise but work as one entity.) Defence is exploiting communications and information technology to link sensors, weapon systems and commanders so that each shares an understanding of their environment - an approach to war known as 'network-centric warfare'. An integrated force comprising air, naval and land elements linked together in this way can respond more rapidly, precisely and agilely to changes in the strategic, operational and tactical environments.
Defence is working to ensure the ADF gains the full benefits of the network-centric approach to warfare. By enhancing our integrated command and control structures, including the creation of Headquarters Joint Operations Command, based at Bungendore, New South Wales, our forces will operate together more effectively. An integrated force will also provide improved intelligence, surveillance and reconnaissance data.
There remain a number of challenges to be overcome in developing an integrated force. Being integrated will improve the ADF's ability to operate as an agile and flexible force. For example, as land forces increasingly adopt some of the characteristics of special forces, then integration with air support will be essential to carry out their operations. And in the push for greater integration, individual Service personnel must retain their professional mastery, fundamental to the ADF's operational effectiveness. First and foremost the Services must retain their war-fighting skills to underpin the broader roles performed in many different missions over recent years. The ADF's reach, its understanding of different operational environments, its skill in the use of military force and its expertise in providing support and enabling capabilities collectively sustain Defence's core role as a war-fighting organisation.
Defence may not always be the lead agency for dealing with security or, more particularly, humanitarian challenges. The key to successfully dealing with these challenges in the future is through integrating the efforts of multiple agencies into a single, cohesive operation. The recent history of successful on-the-ground cooperation between agencies during previous operations provides an excellent basis for building such a capability.
Summary
Australia has always cooperated with friends and allies - we need partners to pursue our interest globally. The alliance with the United States will remain Australia's most important strategic relationship, and will continue to grow. In the region, our defence partnerships continue to support our security interests, as is evident in our recent agreements with Indonesia and Japan. The business of working with others continues within the Government: increasingly, security engages a range of agencies from aid, police, foreign affairs as well as defence. And our effectiveness is enhanced through increasing integration between the elements of our own Defence Force.

