OUTCOME PERFORMANCE

Defence Cooperation

The aims and objectives of the Defence Cooperation Program are to support the Government's strategic objectives by:

• contributing to the maintenance of regional security;
• working with allies, regional partners and others to shape the global and regional environment in a way favourable to Australia and the ADF;
• consolidating acceptance of Australia as an obvious and legitimate participant in deliberations on issues that affect regional security; and
• encouraging and assisting with the development of the defence self-reliance of regional countries.

Table 2.45 Defence Cooperation Summary

	2003–04 Actual $'000	2004–05 Actual $'000	2005–06 Budget Estimate $'000	2005–06 Actual $'000
Papua New Guinea	14,508	13,874	19,389	19,206
South Pacific Region	25,028	25,732	26,671(1)	30,101
South-East Asia	26,417	30,136	24,703(1)	27,450
Other regional activities	738	1,507	1,541	2,340
Defence International Training Centre(2)	3,873	3,695	4,208	3,782
Total(3)	70,564	74,945	76,512	82,773

These activities encompass assistance to regional security forces in the areas of strategic planning, education and training, command and control, infrastructure, counter-terrorism, communications and logistics support. The Defence Cooperation Program also supports the conduct of combined exercises to improve the ability of regional countries to contribute to regional security.

Expenditure for the Defence Cooperation Program in 2005–06 was $82.8m, as summarised in Table 2.45. More details on the cooperation program in the South Pacific and South-East Asian regions can be found later in this section.

Papua New Guinea

Australia continued to provide significant assistance to the Papua New Guinea Government's defence reform program. Joint planning for the second phase of the capability rebuilding program is under way, focusing on helping Papua New Guinea to create a smaller, more effective and more affordable defence force.

The Defence Cooperation Program included the conduct of joint ADF–Papua New Guinea Defence Force land and maritime exercises both in Papua New Guinea and Australia, the provision of considerable infrastructure assistance at Papua New Guinea Defence Force barracks locations, and the provision of ADF advisers to the Defence Force. Four ADF officers are working in senior in-line positions in the Papua New Guinea Defence Force Headquarters and Department of Defence, and are assisting Papua New Guinea Government efforts to make organisational improvements. The Defence Cooperation Program continued to assist the Papua New Guinea Defence Force efforts to improve weapons security and control arrangements, including further improvements to ammunition storage facilities and advisory support. During 2005–06, $19.2m was spent on assisting Papua New Guinea.

South Pacific Region

Our key objective for Defence engagement in the South Pacific region is to foster and support regional security and stability, which is achieved through the Defence Cooperation Program. During 2005–06, $30.1m was spent on the Defence Cooperation Program for the region.

Defence cooperation in the region is focused on enhancing the professional skills of the region's police and military forces, and encouraging the development of appropriate civil-military relations. In particular, the program offers a range of training opportunities including engineering, infantry and English language training, as well as attendance at the Royal Military College, Duntroon, Australian Command and Staff College, and the Centre for Defence and Strategic Studies.

The Defence Cooperation Program is supported by 65 ADF and Defence civilian advisers, living in 12 Pacific countries. They provide ongoing support and guidance to military and police forces on defence and maritime issues.

Multilateral activities

Defence sponsors a range of multilateral exercises and activities that are designed to enhance cooperation, skills development and understanding between Australia and countries in the South Pacific. These activities include:

• an annual series of bilateral humanitarian assistance and disaster relief planning exercises that expose regional security forces and responsible agencies to ADF planning techniques and enhance national preparedness and cooperation;
• Army Aboriginal Community Assistance Program—invites engineering elements from the Defence Forces of Papua New Guinea, Tonga and Fiji to work with the ADF on infrastructure development projects in remote Aboriginal and Torres Strait Islander communities;
• bilateral and multilateral maritime surveillance activities—to support a series of operations and exercises that are focused on developing regional interoperability and cooperation;
• Pacific Small Arms Project—contributes to improved weapons security in partner countries and involves repairing and constructing national armouries and magazines, and the provision of training for small arms management; and
• communications projects—including advisory support, communications training and funding for new equipment.

Pacific Patrol Boat Program

The Pacific Patrol Boat Program provides participating countries with a maritime surveillance capability, enabling them to monitor and manage the maritime resources in their exclusive economic zones. The patrol boats are also frequently used by these countries for national activities such as quarantine enforcement, search and rescue operations, disaster relief, medical evacuations, government transportation and general police work, thereby contributing to nation building in the region.

Australia also provides 27 Royal Australian Navy maritime surveillance advisers and technical advisers throughout the region to support activities associated with the Pacific Patrol Boat Program; namely, maritime surveillance, maintenance, logistics and training.

Australia undertook to double the life of each boat from 15 to 30 years as part of the Life Extension Program in 2000. Defence will remain committed to the Pacific Patrol Boat Program Life Extension Program until 2027, at an additional cost of approximately $350m.

Table 2.46 South Pacific Region Summary⁽¹⁾

	2003–04 Actual $'000	2004–05 Actual $'000	2005–06 Budget Estimate $'000	2005–06 Actual $'000
Vanuatu	1,562	1,267	1,508	1,766
Solomon Islands	334	1,307	2,037	2,351
Tonga	1,902	993	1,242	1,396
Western Samoa	585	603	875	2,333
Cook Islands	325	262	362	256
Fiji	3,848	2,996	3,387	5,539
Republic of the Marshall Islands	1,160	680	838	853
Federated States of Micronesia	1019	795	867	989
Tuvalu	624	697	659	715
Kiribati	850	476	585	635
Palau	791	774	748	970
Multilateral General Assistance(2)	12,027	14,881	13,563	12,298
Total(3)	25,028	25,732	26,671	30,101

South East Asia

Indonesia

Senior-level dialogue is particularly important in progressing our relationship with Indonesia, and, in 2005–06, this was illustrated by visits by Defence Force Chiefs and Service Chiefs. In February 2006, we conducted our first bilateral counter-hijack and hostage recovery exercise since 1997, Exercise Dawn Kookaburra. Two Indonesian navy ships visited Australian ports and the Indonesian Navy participated in Exercise Kakadu in August 2005—a regional maritime exercise focused on interoperability. This was the first exercise that the Indonesian Navy has participated in with Australia since 1999.

Defence provided training in information analysis to Indonesian officers under the Memorandum of Understanding on Combating International Terrorism, and the Indonesian Army Special Forces Kopassus Commander visited to observe Exercise Dawn Kookaburra and met with Special Operations Commander Australia. Further interaction occurred through visits, training and conference attendance in the areas of maritime security, defence management, peacekeeping, air safety and military law.

Singapore

Australia's defence relationship with Singapore is friendly, cooperative and strategically important. A balanced bilateral relationship is underpinned by a broad range of activities including exercises, training and regular dialogue through senior officer visits and formal meetings. Defence science collaboration with Singapore continued to develop, with the inaugural Australia-Singapore Science and Technology forum taking place in October 2005. A significant aspect of the defence relationship is the access provided by Australia for Singapore to use Defence training facilities. Exercise Wallaby, Singapore's annual unilateral exercise, was held at Shoalwater Bay from October to November 2005. Singapore continues to utilise RAAF Pearce in Western Australia and the Army Aviation Centre in Queensland for fixed-wing and helicopter flight training.

Timor-Leste

The Defence Cooperation Program continued to focus on developing the East Timor Defence Force throughout 2005–06. In the first half of the year, Australia continued training programs and capability development activities in the East Timor Defence Force Headquarters, and related units, as well as the Ministry of Defence. These activities included English language and leadership training, as well as training in Australia at the Royal Military College, Duntroon. Significantly, this saw the first graduation of an East Timorese student from the Royal Military College.

Advisory and training personnel also continued to build the capability of the Timor-Leste defence organisation in communications, engineering, logistics, aid to the civil community, finance, policy and planning. In January 2006, and subsequent months, the events of the dismissal of East Timor Defence Force members, and the unrest that followed, interrupted the Defence Cooperation Program. With the restoration of security by the international stabilisation force, Australia was able to resume activities of the Defence Cooperation Program, although at a reduced level.

Defence Cooperation Program funding for the South-East Asia region decreased in 2005–06 by $2.8m due primarily to the construction of the Residential Compound Project in Timor-Leste being completed in 2004–05.

Philippines

Australia's defence engagement with the Philippines continued to expand in key areas of strategic importance, especially counter-terrorism and maritime security. A highlight of 2005–06 was the visit to the Philippines in October 2005 by the Minister for Defence. Negotiations for an Australia-Philippines Status of Forces Agreement progressed, and a combined project to introduce a watercraft capability to the Armed Forces of the Philippines was commenced.

These activities build on a strong foundation of bilateral counter-terrorism cooperation, highlighted by the successful conduct of the annual Dawn Caracha counter-hostage training in September and October 2005. In addition, support for the Philippines' defence reform program continued in the areas of strategic leadership, capability acquisition and logistics management.

Thailand

The tempo of Defence engagement with Thailand was high during 2005–06. The strength of the defence relationship was underscored by the visits to Thailand by the Chief of Air Force in February 2006, and the Vice Chief of the Defence Force in April 2006. The extensive activity program included the Special Forces Panther suite of exercises, and Air Force exercise Thai Boomerang. Cooperation was also expanded to include capability development during 2005–06, with activities including seminars on defence acquisition. Australia also supported the attendance of Thai personnel to courses in Australia and provided English language training to students in Thailand.

Vietnam, Cambodia and Laos

Australia's bilateral relationships with Vietnam, Cambodia and Laos are small, but continue to develop. English language training continues to be a substantial focus of our engagement for all three countries. The inaugural Vietnam–Australia Defence Consultations were held in Hanoi in 2005 and counter-terrorism engagement was a highlight with the ADF Special Operations Commander's visit to Vietnam and Cambodia in May 2006. Australia also hosted the Royal Cambodian Armed Forces Commander in Chief, and Cambodia's Secretary of State for National Defense. In addition, Australia provided assistance to Cambodia in seeking accreditation with the United Nations for peacekeeping operations. Cambodia has since deployed soldiers to the United Nations Mission in Sudan.

Brunei Darussalam

Australia's positive, but modest, bilateral defence relationship with Brunei Darussalam was maintained in this reporting period through a number of activities. The Australian Army conducted special forces Exercise Night Leopard in September 2005, and the Navy successfully conducted Exercise Penguin in June 2006. Other key highlights included a visit by Air Commander Australia to Brunei in February 2006 and annual cooperation in Brunei's fixed and rotary wing standardisation review.

Table 2.47 South-East Asia Summary

	2003–04 Actual $'000	2004–05 Actual $'000	2005–06 Budget Estimate $'000	2005–06 Actual $'000
Singapore	231	165	205	172
Philippines	2,879	3,070	2,411	3,612
Thailand	3,560	3,779	2,916	2,903
Malaysia	4,678	4,704	4,348	4,199
Indonesia	5,048	6,060	4,800	6,130
Timor-Leste(1)	7,076	9,557	7,396	6,458
Vietnam	1,898	1,631	1,622	2,256
Cambodia and Laos	1,000	1,135	969	1,661
Brunei	49	36	36	59
Total(2)	26,417	30,136	24,703	27,344

Other Regional Activities

Australia's Defence Cooperation activities with India, Pakistan and Bangladesh seek to promote constructive dialogue and modest practical engagement in areas of mutual interest such as peacekeeping and professional development. A range of activities, including conferences and seminars, single-Service and combined training, exchanges and ship visits took place with India, Pakistan and Bangladesh.

India

Defence Cooperation with India included staff college exchanges and reciprocal attendance on a number of courses. Senior visits to and from India provided opportunities to consider potential initiatives for further cooperation. In September 2005, the Chief of Air Force visited India, followed by the Deputy Chief of Navy in November 2005, and a ship visit to Goa by HMAS Parramatta in March 2006. Visits from India included Chief of Army Staff in October 2005 and the Chairman of the Chiefs of Staff Committee in May 2006, in addition to a ship visit by INS Tabar to Fremantle and Sydney in June 2006. The fourth Joint Working Group on Defence was held in New Delhi in February 2006, enabling an exchange of views on international developments and the bilateral defence relationships by senior defence officials. The signing of a Memorandum of Understanding on Defence Cooperation during the Prime Minister's visit to India in March 2006 established a framework agreement for bilateral defence relations.

Pakistan

The focus of Defence Cooperation activities with Pakistan was on staff college exchanges and training activities in Australia. Following the earthquake of October 2005, the Chief of the Defence Force and the Chief of Army both made visits to northern Pakistan as part of Operation Pakistan Assist.

Bangladesh

Defence Cooperation with Bangladesh involved attendance at seminars in Australia and a visit by the Chief of Army Staff to Australia in March 2006.

Five Power Defence Arrangements

Australia's membership of the Five Power Defence Arrangements remains a key element of defence relations between the five member nations and continues to provide a stabilising influence in the region. The Five Power Defence Arrangements continues to develop the group's ability to address non-conventional threats to regional security, including the threat of international terrorism, particularly through Exercises Bersama Lima, held in September 2005, and Bersama Shield, held in May 2006. The participating Ministers agreed this year that the group would explore how it could assist with regional humanitarian assistance and disaster relief.

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