TRANSCRIPT
With US President Donald Trump announcing a number of shifts in areas of US foreign policy, there had been uncertainty about the future of the AUKUS security partnership under a second Trump administration.
A fortnight after being sworn in as US Secretary of Defence, Pete Hegseth held his first face-to-face meeting with a foreign counterpart, Australia's Defence Minister, Richard Marles.
He says President Trump is supportive of the initiative, which Australia sought in September 2021 under the previous Biden administration.
"The president is very aware, supportive of AUKUS. He recognises the importance of the defence industrial base. The investment Australia is willing to make. It enhances our ability in the subterranean space, but also our allies and partners. This is not a mission in the Indo-Pacific that America can undertake by itself. It has to be robust allies and partners. Technology sharing. And subs are a huge part of it. So he is aware and appreciative of his support - and leadership - on that topic."
Mr Marles confirmed Australia has made its first payment of A$798 million, as part of the deal for the US to provide nuclear-propulsion submarines to Australia over the next decade.
Richard Marles: "But we're really pleased to make the first payment in respect of that. Half a billion dollars we've been able to make in the first couple of weeks of the Trump administration.
Pete Hegseth: The cheque did clear?
Richard Marles: It did clear. But we're really pleased to make it in the first week of your tenure. I couldn't be more excited about the meeting we're having today. And thank you for having us.
Pete Hegseth: Thank you to you and your staff for being here."
The leaders of Australia, the UK and the US who signed the deal called it the most strategically important partnership in decades, adding the goal is to promote a free and open Indo-Pacific that is secure and stable.
Flashpoints include disputes covering the Korean Peninsula, the South China Sea and Taiwan.
The AUKUS agreement will enable the UK and the US to transfer submarine-specific material and equipment for Australia's future nuclear powered submarines.
The deal marks the first time the US is sharing its submarine technology in 50 years. Previously, it had only shared the technology with the UK.
The deal includes the supply of three Virginia-class submarines from the US by the early 2030s.
Mr Hegseth says the US aims to deliver the submarines on time.
''We sure hope so. Part of what President Trump is committed to doing, is cutting red tape, investing in the defence industrial base, ensuring that we stand by our allies and partners. I think that's something that was missing in the last four years, that President Trump demonstrated. You're going to have no worst enemy and no better ally. And that's what he's charged me with at the Defence Department is when we make these strategic partnerships, and we invest in them - and there's skin in the game. We're going to do everything possible we can to help deliver on that.''
Mr Marles says he is determined to see the project completed.
"There have been challenges there in the past. But it is of course why we see that part of getting this done is for Australia to make the contribution that we are to the American industrial base, which is measured in billions of dollars. We are encourgaed by the progress. There is a way to go but this is something that jointly, we're going to get done. It needs to be done from the perspective of both of our countries. It needs to be done in terms of the deterrence in the Indo-Pacific - and around the world."
It is anticipated that from 2027, Australia will host up to five nuclear-powered submarines from the US and UK - at the HMAS Stirling naval base in Western Australia.
The jointly crewed submarines will boost the rotational deployment of defence assets in the region.
Under what's called pillar two of the agreement, there is an arrangement to share advanced technologies in areas such as artificial intelligence, quantum, cyber and hypersonics.
Critics of the deal say they are concerned about the acquisition of the nuclear-powered component of the submarines, the build up of military activity, and the issue of dealing with radioactive waste.
Others have questioned the cost and the timeline.
The federal government has said it is adopting a non-proliferation approach that sets the strongest precedent for the acquisition of a nuclear-powered submarine capability.
The federal government projects the cost of buying and operating the new submarines over the next 30 years to be between $268- and $368 billion.
This represents an increase of 0.15 per cent of GDP per year to the defence budget - over a 30-year period.
