Australia to get U.S. nuclear submarine technology as part of new security pact

The United States, Britain and Australia said on Wednesday they would establish a security partnership for the Indo-Pacific that will involve helping Australia acquire nuclear-powered submarines, as Chinese influence over the region grows.

Under the partnership, announced by U.S. President Joe Biden, British Prime Minister Boris Johnson and Australian Prime Minister Scott Morrison, the United States will provide Australia with the technology and capability to deploy nuclear-powered submarines, senior U.S. administration officials told reporters.

The three leaders outlined the deal in a three-way virtual announcement from each of their capitals.

"We all recognize the imperative of ensuring peace and stability in the Indo-Pacific over the long term," said Biden.

"We need to be able to address both the current strategic environment in the region, and how it may evolve because the future of each of our nations and indeed the world depends on a free and open Indo-Pacific enduring and flourishing in the decades ahead," he said.

No nuclear weapons, Morrison says

Morrison said the submarines would be built in Adelaide in close co-operation with the U.S. and the U.K.

He said Australia will not be fielding nuclear weapons. "We will continue to meet all our nuclear non-proliferation obligations."

Johnson called it a momentous decision for Australia to acquire the technology, which he said wouldmake the world safer.

The move comes as Washington and its allies are looking for ways to push back against China's growing power and influence, particularly its military buildup, pressure on Taiwan and deployments in the contested South China Sea.

Deterrence across the Indo-Pacific

The three leaders did not mention China and senior U.S. administration officials who briefed reporters ahead of the announcement said the move was not aimed at countering Beijing.

U.S. officials said nuclear propulsion would allow the Australian navy to operate more quietly, for longer periods, and provide deterrence across the Indo-Pacific.

The officials said the partnership, dubbed AUKUS, will involve co-operation in areas including artificial intelligence, quantum technology and cyber.

The partnership looks likely to end the country's attempts to have French shipbuilder Naval Group build it a new submarine fleet worth $40 billion US to replace Australia'smore than two-decades-old Collins submarines.

"This new architecture is really about deepening co-operationon a range of defence capabilities for the 21st century, and ...these relationships with Great Britain and Australia are time-tested," one of the U.S. officials said.

The three countries would launch an 18-month effortinvolving technical, strategic and navy teams to identify "thebest ways for Australia to pursue nuclear-powered submarines,"the official said.

"This will give Australia the capability for theirsubmarines to basically deploy for a longer period, they'requieter, they're much more capable. They will allow us tosustain and to improve deterrence across the Indo-Pacific."

Boon for U.S. defence industry

The pact should be a boon for the U.S. defence industry andamong the firms that could benefit are General Dynamicsand Huntington Ingalls Industries, which lead the U.S.submarine industrial base, which includes thousands of othercompanies.

General Dynamics's Electric Boat business does much of thedesign work for U.S. submarines, but critical subsystems such aselectronics and nuclear power plants made by BWX Technologies.

Britain described it as a very significant announcement andsaid the 18-month program would work out details as to whatcountries and companies would do what, with the aim beingfor thefirst submarine to be delivered as quickly as possible.

The U.S. officials who briefed reporters about the deal didnot give a time frame for when Australia would deploy anuclear-powered sub or how many would be built. They said thatsince Australia does not have any nuclear infrastructure, itwould require a sustained effort over years.

One U.S. official said the announcement was the result ofseveral months of engagements between respective militarycommands and political leaderships, during which Britain whichrecently sent an aircraft carrier to Asia had indicated itwanted to do more in the region.

"What we've heard in all those conversations is a desire forGreat Britain to substantially step up its game in theIndo-Pacific," the official said, noting its historical ties toAsia.

The U.S. official said the United States had shared nuclearpropulsion technology only once before with Britain in 1958 and added: "This technology is extremely sensitive. This isfrankly an exception to our policy in many respects, I do notanticipate that this will be undertaken in other circumstancesgoing forward. We view this as a one-off."