Albanese vows defence export law overhaul to smooth AUKUS passage

Last month, Democrat senator and former chairman of the US Foreign Relations Committee Robert Menendez aired his concern that export control changes under AUKUS could be used for nefarious purposes.

“I don’t want AUKUS to be used by some as a Trojan horse to undermine US export controls for the sake of commercial, industrial interests that are unrelated to the partnership,” Senator Menendez said.

The US State Department currently has an AUKUS Trade Authorisation Mechanism, which is an interim solution to streamline defence trade while the two countries pursue broader changes under AUKUS.

Most of Congress is encouraging a relaxation of export controls for defence articles sent to Australia but there are separate misgivings about production capacity that have some Republicans and Democrats concerned about America’s own ability to build enough submarines.

Last month Democrat senator Jeanne Sheehan raised issues about the impact of AUKUS on US submarine production capacity.

“It still seems clear to me that despite all of that investment, we don’t yet have the capacity in that defence industrial base to build the subs that we need to meet the AUKUS agreement,” Senator Sheehan said.

Signs of Republican softening

Republican senator Roger Wicker, who has rejected legislation authorising the sale of Virginia-class submarines to Australia citing US capacity constraints, showed some signs of softening last week following the Biden administration’s request for more funding for submarine production under a supplemental bill calling for further funding for conflict in Israel and Ukraine.

”Inclusion of submarine industrial base funds is a welcome start to the process of fortifying our submarine maintenance and production capabilities, but it cannot stop here,” Senator Wicker said.

As he commenced his four-day official visit to Washington, Mr Albanese ruled out increasing Australia’s $3 billion contribution to grow the submarine industrial bases in the US and Britain to accommodate Australia’s boats.

“We think that our support is appropriate,” he said.

“President Biden’s legislation or bid for financing is also about increasing capacity here, as well. So President Biden is on the same page. I see that as being consistent with what Australia is asking for from the AUKUS arrangements.”

While the Republican Party remains in turmoil over the failure to appoint a new House of Representatives speaker, the prime minister is lobbying key congressional leaders and committee members to speedily pass AUKUS bills.

Mr Albanese expressed confidence Congress would pass the legislation because members would recognise it was in America’s interest.

”The AUKUS arrangements are in the interest of Australia, to play our role. We don’t seek to just be someone who is watching. We seek as well to play a role in security in the Indo-Pacific,” Mr Albanese said. He said the partnership would improve defence capabilities of all three countries. “That’s what this is about. Win-win-win for Australia, the United States and the United Kingdom.“

Dinner guests

Mr Biden and First Lady Jill Biden will host Mr Albanese and his partner Jodie Haydon for a private dinner on Tuesday night. The White House will hold a State Dinner in Mr Albanese’s honour the following night. Classic 1980s rock band the B-52s are to perform.

The White House remains tight-lipped on the rest of the guests but Australian Rugby League Commission chairman Peter V’landys has been confirmed as attending.

White House press secretary Karine Jean-Pierre denied it looked “tone deaf” for the dinner to go ahead when there was significant human suffering in Israel and Gaza.

”We believe that there is no more important time than now to have this state visit with the Australians, and to demonstrate, of course, our strength and partnership and alliances as we continue to have conversations,” she said.

“You’re going to see two leaders come together, continuing to talk about the partnership that they’re hoping to continue to put forward.