AUSMIN 2008: SESSION IV: ALLIANCE AND DEFENSE

S E C R E T SECTION 01 OF 05 CANBERRA 000180

SIPDIS

SIPDIS

STATE FOR D, NEA/I, PM AND EAP

E.O. 12958: DECL: 02/23/2018
TAGS: OVIP GATES ROBERT OVIP NEGROPONTE JOHN MARR
MOPS, PREL, AS
SUBJECT: AUSMIN 2008: SESSION IV: ALLIANCE AND DEFENSE
PARTNERSHIP

Classified By: Ambassador Robert D. McCallum, Jr, for reasons 1.4 (b),(
d).


1. (U) February 23, 2008, Parliament House, Canberra,
Australia.

SUMMARY
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2. (S) Secretary of Defense Robert Gates and Australian
Minister for Defence Joel Fitzgibbon led the fourth and last
U.S.-Australia Ministerial (AUSMIN) session, which focused on
bilateral alliance issues, primarily in the defense arena.
Secretary Gates made the following points: 1) The U.S. looked

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forward to cooperating with Australia on three areas designed
to enhance defense cooperation: the Joint Combined Training
Capability; Humanitarian Assistance and Disaster Relief; and
Intelligence, Surveillance, and Reconnaissance for the next
year; 2) the United States welcomed the signing of two
statements of principle to further strengthen information and
intelligence sharing, one on Satellite Communications
cooperation and a second on geospatial intelligence
collaboration; 3) it has taken the United States longer to
finalize the Defense Trade Cooperation Treaty exemptions list
than originally anticipated but the U.S. still hoped to send
the treaty implementing arrangements to the Senate for
ratification by early March; 4) the United States stands
ready to brief the new Labor government on missile defense
technologies and activities as they review their missile
defense policy; and 5) the United States encourages Australia
to continue to keep interoperability with the U.S. as a key
decision factor in all capability requirements analysis.
Minister Fitzgibbon made the following points: 1) Australia
is undertaking a comprehensive review of its future
capability acquisitions as part of its Defense White Paper
process and said it would make a pro forma request regarding
possible sale of the F-22 to respond to domestic pressures;
2) they were still finding their footing on missile defense,
with lukewarm support for in-theater missile defense but as
part of their review were open to advice from the United
States; 3) they valued the close intelligence, defense
planning, and exercise and training relationships with the
United States; 4) they appreciated the Secretary's frankness
on the delay in finalizing the implementing arrangements of
the Defense Trade Cooperation Treaty; and 5) they welcomed
the efforts in enhanced defense cooperation. This is the
fourth of four AUSMIN 2008 reporting cables. End Summary.


3. (U) Participants:

UNITED STATES
Secretary of Defense Robert M. Gates

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Deputy Secretary of State John D. Negroponte
QDeputy Secretary of State John D. Negroponte
Ambassador Robert D. McCallum, Jr.
Admiral Mike Mullen, Chairman of the Joint Chiefs of Staff
Admiral Timothy J. Keating, Commander, U.S. Pacific Command
Acting Assistant Secretary for Political-Military Affairs
Stephen Mull
Assistant Secretary of Defense for Asian & Pacific Security
Affairs James Shinn
Principal Deputy Assistant Secretary for East Asian & Pacific
Affairs Glyn Davies
Tim Davis, Carol Hanlon, Aleisha Woodward, John Crowley,
Jessica Powers (Notetakers)

AUSTRALIA

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Minister for Foreign Affairs Stephen Smith
Minister for Defence Joel Fitzgibbon
Michael L,Estrange, Secretary of the Department of Foreign
Affairs and Trade
Nick Warner, Secretary of the Department of Defence
Air Chief Marshall Angus Houston, Chief of the Defence Force
Duncan Lewis, Deputy Secretary of the Department of Prime
Minister and Cabinet
Peter Varghese, Director General of the Office of National
Assessments
Dennis Richardson, Australian Ambassador to the United States
Berenice Owen-Jones, Alistair McEachern, Alanna Mackay,
Antony Horrocks, Marina Tsirbas, Amanda Pickrell, John
Feakes, Peter West (notetakers).

ENHANCED DEFENSE COOPERATION
--------------

4. (S/REL AUS) The Secretary of Defense kicked off the
discussion, noting U.S. and Australian agreement to focus on
some key areas following the September 2007 announcement by
Prime Minister Howard and President Bush at the APEC Summit
to cooperate more closely. Secretary Gates signaled U.S.
agreement to sign an updated memorandum of agreement on the
Joint Combined Training Capability (JCTC) when the text was
finalized, allowing for even greater combined management of
the JCTC. He also mentioned that the U.S. and Australia had
agreed to move forward on prepositioning of Humanitarian
Assistance/Disaster Relief (HA/DR) equipment. On both HA/DR
and JCTC, the two sides agreed to Joint Investment Programs.
In the last area of Intelligence, Surveillance, and
Reconnaissance (ISR),the Secretary agreed with the
Australian proposal for a Joint Project Definition Study to
help inform a decision for consideration at the 2009 AUSMIN.
He noted that the lessons learned most recently in Iraq and
Afghanistan had allowed the United States to take its ISR
capability to a completely different level. Lastly, the
Secretary pushed Australia to continue its review of combined

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command and control arrangements and U.S. willingness to
assist with this review, with the hope that by the 2009
AUSMIN, the two sides might agree to take the next step in
this area. Minister Fitzgibbon concurred that these areas of
mutual cooperation were of immense benefit to Australia.

INFORMATION SHARING
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5. (S/REL AUS) In a public ceremony, Minister Fitzgibbon and
Secretary Gates signed the U.S.-Australia Military Satellite

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Communications (SATCOM) Partnership Statement of Principles,
which will allow the United States and Australia to take
advantage of modern technologies to further strengthen
Qadvantage of modern technologies to further strengthen
intelligence cooperation. Minister Fitzgibbon noted this
would continue to operate under the long-standing principle
of full knowledge and concurrence that guide current
intelligence cooperation. During the closed session, they
also signed a Statement of Principles on geospatial
intelligence cooperation to take GEOINT cooperation to the
same level that signals intelligence has reached between the
two countries. As an illustration of how much the political
environment had changed in Australia, Secretary Gates noted
that the SATCOM cooperation agreement was not expected to
generate any public controversy.

DEFENSE TRADE COOPERATION TREATY
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6. (SBU) Minister Fitzgibbon noted ongoing concerns of the

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Australian defense industry created by U.S. International
Traffic in Arms Regulations (ITAR) and export controls that
he hoped the Defense Trade Cooperation Treaty would help to
minimize. Secretary Gates shared with the Minister that the
development of the exemptions list for the treaty had taken
longer than initially expected because the Under Secretary of
Defense for Acquisition Technology and Logistics had worked
closely with other DOD components to cull the list down to a
minimum that would be in accordance with the export rules and
regulations, but also remain within the spirit of the treaty.
He indicated that he expected the list to move to the
Department of State soon for a narrow legal review with
regard to export controls, after which the State Department
would be able to forward the implementing arrangements to the
Senate in early March so the treaty could be ratified.

FUTURE CAPABILITY ACQUISITIONS AND AUSTRALIAN DEFENSE WHITE
PAPER
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7. (S/REL AUS) Minister Fitzgibbon explained that the new
Australian government had four major priorities in defense:
1) developing a new White Paper; 2) continuing growth in
defense spending at three percent in real growth; 3) ensuring
maximum capability; and 4) addressing the personnel and
skills shortage in the military. The new Defense White Paper
that the Labor government was writing would be a strategic
re-assessment that would guide decisions on capability
requirements and force structure as well as plan for future
defense budgets. He expected the paper to be completed by
early 2009 but hoped that it would not hold up some key
projects for which the Labor government had already expressed
support, including the three Air Warfare Destroyers and the
two large amphibious ships already agreed to under the Howard
government. Simultaneously, the new government had convened
an Air Combat Capability Review that would be completed by
the end of April 2008 and would review the decision by the
Howard government to retire the F-111s by 2010, review the
status of the Joint Strike Fighter (JSF) program, revisit the
F-22 issue and the Howard government's decision to purchase
24 Super Hornets as a stopgap between the retirement of the
F-111s and the arrival of the first JSF fighters. He
expressed his opinion, however, that the review would likely
not result in any decision other than to keep the JSF and
continue with the Super Hornet purchase, explaining that the
Qcontinue with the Super Hornet purchase, explaining that the
government felt it had to respond to Australian public
concerns that the previous government had not based these
decisions on capability requirements but rather on political
expediency. He also mentioned the ALP's commitment to
submarines. Secretary Gates acknowledged that it was
reasonable for a new government to undertake a review of
large procurement decisions. He stressed the hope that a key
decision factor would be for Australia to remain
interoperable with the United States, and offered U.S.
assistance to the review efforts.

MISSILE DEFENSE AND SPACE POLICY
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8. (S/REL AUS) Defence Minister Fitzgibbon noted that missile
defense became an issue in Australian politics in the lead up
to the November 2007 election. The Australian Labor Party
(ALP) adopted a position of lukewarm support for in-theater
missile defense but rejected national missile defense because
it risked upsetting the regional/global balance. The new
government was willing to discuss the issue, however, and was
undertaking a review of missile defense as part of the White

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Paper. On the multilateral missile defense conference that
had been scheduled to convene in Sydney in September 2008, he
explained the government's decision to cancel hosting it as
one of domestic political management. The government could
not be seen to host a major missile defense conference before
completing its internal review and making public the
government's decision on future missile defense. He conceded
that Australia would be willing to host a future iteration of
the conference, perhaps in 2010. (France has already agreed
to host the 2009 conference.) Acknowledging the sensitivity
of the issue, Secretary Gates encouraged Australia to allow a
U.S. expert on missile defense to brief them on the latest
technology and issues as they began their internal review.
He also asked that Australia provide assurances publicly that
the cancellation of the multilateral conference was not a
signal of their direction on missile defense should the issue
be leaked. In the area of Space Policy, Minister Fitzgibbon
thanked the United States for continued and growing close
cooperation, acknowledging the benefits that Australia
derives from such cooperation with the United States.


9. (S/NF) Comment: A sign of the inchoate deliberations of
the new government on missile defense was evidenced later in
the day as both sides prepared for the concluding press
conference. Minister Fitzgibbon seemed prepared to make
positive statements about the recent successful shootdown of
a U.S. satellite, while rejecting missile defense concepts.
In the end, he refrained from saying anything discordant in
the press conference itself, but the back and forth
discussion on the Australian side demonstrated that the new
government is still feeling its way, and missile defense is
one area where we can expect them to struggle. End comment.

AUSMIN DEFENSE ACQUISITION COMMITTEE (ADAC) MEETING
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10. (SBU) Air Chief Marshal Houston, Chief of the Defence
Force, briefed the results of the ADAC meeting earlier in the
month that had examined capability and procurement issues.
Key outcomes included technology transfer issues that were
resolved; discussion of implementation of the Defense Trade
Cooperation Treaty after it is ratified; and the decision to
embed the outcomes from the Interoperability Statement of
Principles into ongoing efforts.

MILITARY REPRESENTATIVES (MILREPS) REPORT
--------------

11. (S/REL AUS) Air Chief Marshal Houston also briefed the
Q11. (S/REL AUS) Air Chief Marshal Houston also briefed the
results of the September 2007 MILREPS meeting that he hosted
with Admiral Keating. The meeting resulted in 22 action
items focused on counterterrorism; maritime security
collaboration, particularly in Indonesia and the Philippines;
China and combined efforts; intelligence sharing, and
exercises and training. Both Admiral Keating and Air Chief
Marshal Houston noted that exercises like Talisman Sabre
remained the bedrock of training for both sides. Talisman
Sabre was a high-end capability exercise that provided an
opportunity to test significant air and naval capabilities.
Houston called such interaction "invaluable" to Australia's
ability to maintain its strategic capabilities and was
pleased that these exercises continued despite the high
operational tempo maintained by both countries.

POLICY PLANNING PARTNERSHIP
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12. (SBU) Both sides noted the growing cooperation and

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efforts to exchange classified planning guidance and
personnel, as well as to cooperate on defense planning
scenarios. Minister Fitzgibbon indicated that Australia
looked forward to commencing work in mid-2008 on further
developing plans.

COFFEE SESSION: AFGHANISTAN AND NATO, MISSILE DEFENSE, AND
AIR COMBAT CAPABILITY REVIEW
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13. (S/REL AUS) In an pre-AUSMIN early morning meeting, many
of the topics were briefly discussed between Secretary Gates
and Minister Fitzgibbon, including their mutual frustration
with bringing NATO along on Afghanistan. Gates noted the
need to make the process work better and move NATO
ministerials from stilted, sterile processes to more dynamic
sessions. France's return to NATO was an opportunity to
restructure how NATO does business. At Bucharest, the United
States and Australia should press NATO ministers to take up
the public statement on Afghanistan to strengthen European
public support for the long-term vision. Minister Fitzgibbon
rejoined that Australia would like to get more visibility
into internal NATO deliberations. On missile defense,
Minister Fitzgibbon reiterated the need to postpone the
multilateral missile defense conference until after the ALP
conference and that the cancellation of the conference this
year should not be seen as "a matter of policy change but of
political management. We need to get our party platform on
missile defense in order before holding the conference." He
reassured Secretary Gates that there would be no public
announcement of the postponement to avoid the perception of a
policy change on missile defense. Minister Fitzgibbon
discussed the Air Combat Capability Review that had just been
announced. The Defence Minister stated that "aircraft
acquisition is now a topic of broad public discussion; every
man in every hotel (bar) is talking about F-18 Super Hornets"
so the Labor government needs to do a public review. As part
of that review, he asked for reassurance that the Joint
Strike Fighter (JSF) was on track, which Admiral Mullen
confirmed. As for the F-22, Minister Fitzgibbon stated he
has to ask for political reasons and asked for guidance as to
what to do. Secretary Gates noted the Obey Amendment
prohibiting foreign sales of F-22s was unlikely to change
anytime soon. (Note: OSD/APSA advised Secretary Gates that
any letter should be sent to DOD rather than to Congress.)


14. (U) Secretary Gates, PM Acting Assistant Secretary Mull,
Q14. (U) Secretary Gates, PM Acting Assistant Secretary Mull,
and EAP Principal Deputy Assistant Secretary Davies cleared
on this cable.

MCCALLUM