Press conference, Sydney

Deputy Prime Minister, Richard Marles: Welcome everyone. Today, we have just completed a really successful AUKMIN meeting. I'd like to start by actually thanking the Governor-General for letting us use this spectacular setting for what has been a really, really important meeting for both of our countries. To David and John, thank you for being here. This is the second AUKMIN that we've done in seven months, but it is the second AUKMIN that the four of us have done. And relationships matter. And we are enormously grateful for the two of you, for the generosity in which you've engaged with us and the level of trust that you've been able to bring to these conversations. Because for our two nations to be able to have a dialogue of this kind with absolute trust is so important in terms of a relationship which now stands in the highest order in terms of Australia's national interest. And it's also a relationship which is critically important in terms of the context of the world that we face today. We are living in a world which is increasingly volatile. We are seeing competition in the Indo Pacific, in the North Atlantic- we meet at a point in time where there are ongoing conflicts in Ukraine, and of course we see the tragedy playing out in the Middle East. Today we are on the brink of concluding a treaty between our two countries in respect of AUKUS and Australia acquiring a nuclear-powered submarine capability. This is a bilateral treaty between Australia and the UK which gives expression to the trilateral treaty that our three countries signed in the United States in Washington D.C. in August of last year. It is as significant a treaty as has been signed between our two countries since Federation. And tomorrow it will be the honour of John and I to put our signatures to this treaty in Geelong and it will very much underpin the development of AUKUS, the building of submarines in Adelaide and what will ultimately see Australia and the United Kingdom operate the same class of nuclear powered submarines in the future. We are seeing an increasing engagement of the United Kingdom in the Indo Pacific which we really welcome and we've spoken about that today. That's perhaps given greatest expression in the 3,000 servicemen and women from the UK Armed Forces who are participating in Exercise Talisman Sabre. And on Sunday we will be in Darwin and we will visit His Majesty's Ship, the Prince of Wales, the UK aircraft carrier which is participating in Exercise Talisman Sabre. We've also spoken today about defence industry collaboration and particularly through Project Copperhead. This will see industry collaboration in the United Kingdom and in Australia around next generation technologies, but also low cost componentry for missiles and munitions. And finally, we are very grateful to the UK's leadership in respect of supporting Ukraine in its resistance in respect of the immoral and unlawful aggression of Russia. We are announcing that we will continue for an additional year our contribution to exercise Kudu. This is Australia participating in the multination exercise of training the Ukrainian Armed Forces in Britain. And that will continue through until the end of 2026. Right now we are seeing the Australian Abrams tanks being delivered to Ukrainian Armed Forces. A month ago at NATO, I announced that there would be another rotation of our E-7 Aircraft which carries a significant number of Australian personnel who are there supporting it. Today we announce that that E-7 rotation will be jointly staffed by Australian and UK personnel. 

David and John, thank you again for your presence here. It really has been a very, very significant AUKMIN that we have undertaken today and we are very much looking forward to the weekend ahead.

UK Foreign Secretary, David Lammy: Well, thank you so much Richard and Penny. It's great to be back in Sydney. We've had some focused and constructive talks today. It's clear that the UK-Australia relationship is an anchor in what is a very volatile world, providing stability in troubled waters and a relationship that holds steady whichever way the geopolitical winds are blowing. And with our Carrier Strike Group docking in Darwin, I think we're sending a clear signal, a signal of the UK's commitment to this region of the world, our determination to keep the Indo-Pacific free and open and that we stand together. We stand together as we have in the past, as we do now, prepared. And this is not just about facing challenges, but growing and investing together. We've agreed some practical and important steps across trade, defence and growth that will deliver for Brits and Aussies alike. Our new landmark treaty, which Defence Ministers will sign tomorrow, will underpin the next 50 years of UK-Australian bilateral defence cooperation under AUKUS Pillar I, supporting stability and security in the Indo Pacific and beyond and strengthening of course, our economy with many jobs lying behind this, both in the defence sector and in supply chains. And we're backing up to 50- to 5 billion pounds worth of UK export finance support for projects here in Australia, including in critical minerals. In a turbulent world, the UK-Australia partnership is delivering and together we will continue to do so for a more secure, a more stable and a more prosperous future.

Foreign Minister, Penny Wong: Thanks very much. Well, can I say what a privilege it is to host with Richard, David and John here in Sydney for AUKMIN. Can I thank both of you for making the long journey and more importantly, thank you for the spirit of partnership and friendship that you bring to our discussions. Australia and the UK, we have a relationship that's grounded in history, that's shaped by our people, by our institutions and our shared values and critically, our shared interests. We all know we face the most challenging strategic circumstances since World War II. More conflict, more contest. A multilateral system under strain. And against that backdrop, the partnership between our nations matters even more. And we are determined to work together to modernise our partnership, to take the world as it is, but to work together to shape it for the better. We've had an excellent set of discussions today. We appreciated the openness and clarity of those discussions. We also, in addition to the very important treaty that Richard and John will be signing tomorrow, we have a number of measures, one of which David has alluded to, that we are announcing today – and they really are about strengthening economic resilience – deeper cooperation on critical minerals, building on our Critical Minerals Strategic Reserve and our initiative with the Quad, the expansion of climate finance to Southeast Asia, recognising the clear links between climate development and regional stability and the strengthening of cyber security capacity in the Pacific, supporting regional sovereignty in a much more contested digital environment and responding to the request of the Pacific. Of course, we also work together on other multilateral matters. And I appreciate David and the UK's leadership and participation in the various joint statements in relation to the crisis in Gaza and the work that they are doing. So, can I say we will continue with the UK to call for, press for a ceasefire, for hostages to be released, for aid to flow and for international humanitarian law to be upheld. I want to publicly thank Secretaries Lammy and Healy for our discussions together. We are building a modern and ambitious partnership, building a better future for our peoples. Thank you.

UK Defence Secretary, John Healey:Thank you, Richard, thank you, Penny, for hosting a very productive day of diplomacy today. Thank you all for your interest here. It's clear as global threats increase, that partnership matters more than ever. And that's why today we're here to strengthen the security of the Euro Atlantic, the security in the Indo Pacific, because the security between the two regions is indivisible. And Richard, you mentioned Ukraine. The security of both our countries starts in Ukraine. And so thank you for Australia's unwavering commitment to support Ukraine. Your contribution to what you call Project Kudu, what we call Operation Interflex, the training of Ukrainian troops has been important and the extension of that commitment for another year is very significant, thank you. Your commitment also to the Ukraine Defence contact group, the 50 plus nations standing with Ukraine, and your contribution to the coalition of the willing, the military planning for a peace and a ceasefire in Ukraine means that together we are helping make sure that Ukraine has the kit and technology it needs to maintain the fight now. And we're ready to help secure the peace in the long term. And we may be in Sydney, 9,000 miles from Kyiv but the signal today that we send is that Australia and the UK will stand with Ukraine for as long as it takes. Because while those aiding Russia, providing drones, supplying technology, deploying troops into the front line may be focused on Ukraine today, they could turn their sights to the Indo Pacific next. And so that's why, amid the growing threats, the UK's commitment to Australia is absolute. From our carrier strike group alongside in Darwin at the moment, to the 3,000 British troops that are part of the Australian led Talisman Sabre exercise with 17 other nations, and to the decades long commitment we've made together as two nations with the US through the AUKUS partnership. And I'm really proud that Britain today, alongside Australia, can announce our new AUKUS treaty that we will sign together, Richard, tomorrow in Geelong. This is a treaty to last 50 years. It's a treaty that will support tens of thousands of skilled, high paid jobs in both our nations. It's a treaty to build the most powerful, the most advanced attack submarines our two navies have ever had. It's a treaty that strengthens NATO as well as security in the Indo Pacific. It's a treaty that will outlast us as politicians, that will safeguard the security of our children and our children's children to come. So, this is a historic day, it's one that David and I are honoured to share with you both. Thank you for your friendship, thank you for your partnership, thank you for your leadership and I look forward to working with you to realise our discussions today in the years ahead.

Marles: Thanks, John, Penny and David. So, we do have time for questions and we'll start with Nick Fildes from the Financial Times.

Journalist: Thank you. Just on AUKUS, which was the subject today, has the US review disrupted or threatened at all any of the planning of design of the SSN AUKUS? Have any discussions happened with the US recently about how to help that(inaudible)?

Marles: Well, perhaps I might start on that. So a new government undertaking a review is the most natural thing in the world. And we've welcomed the review which is being undertaken by the Trump administration. We spoke today about how both of us can- both countries can contribute to the review. When we came to government back in 2022, we undertook the Defence Strategic Review, which looked at all of our strategic landscape and our defence settings, but very much looked at AUKUS at that time. And of course, when the UK government came to power, they in turn undertook a review through Stephen Lovegrove of AUKUS. So, you know, this is a very, very natural step. But in respect of both the reviews that have happened in the past, and it would be true in respect of this review, work on AUKUS continues apace. And so the answer to the question is we continue to work very closely together, but very closely with the United States in progressing the optimal pathway to Australia acquiring a nuclear-powered submarine capability, but to see the fruition of the AUKUS arrangement in all three countries. And in respect of the production and maintenance schedule in the United States, we continue, Australia, to make our financial contributions to that industrial base. And we've made two contributions each of $500 million US this year- so, a total of a billion dollars US through the course of this year. There are something in the order of 120 Australian tradesmen and women who are in Pearl Harbour right now working on the sustainment of US Virginia class submarines for the US Navy. So, all of that work continues and we are really confident that the production rates will be raised in America, which is very much part of the ambition of AUKUS, and the sustainment rates will be lifted in the US. And all of that continues at a pace. And in respect to the review, as I said, we very much welcome it and we'll make our contributions to it.

Healey: From the UK's part, as Richard has said, this is natural for a new government to review the program. We welcome it because it's an opportunity for the new administration to renew America's commitment to the deep AUKUS partnership that our three nations have. We welcome it because it will underline the benefits that it brings, not just to the three nations, but to the US in particular and their concerns about China, their concerns about the Indo Pacific. It means in the short term, next year and the year after, more attack subs in the Indo Pacific. In the medium term, when the maintenance facilities in Perth can accommodate US subs, it means that they will be able to maintain, put more subs in the sea. And long term, as we build more attack subs, again, it means more subs, greater deterrence and greater regional security in the Indo Pacific. It also underlines the fact that both Australia and the UK are increasing our investment, not just in defence, but in this advanced capability. We are doing so, and the AUKUS partnership is one that does not cost the US taxpayer anymore, indeed, we are putting more in, Australia and the UK. And finally it is a partnership that will bring hundreds of new jobs, thousands of new jobs to all three nations- skilled work, high paid work that will help drive the economies in all three nations. So, we welcome the review. We'll make our contribution to the review. We see it as a natural part of a new government renewing its commitment in turn to this AUKUS partnership.

Marles: Anna Henderson, SBS.

Journalist: This is a question for Foreign Secretary Lammy and Foreign Minister Wong, it's now been a number of years where you've both hinted and then said that you see Palestinian statehood as a future ambition. But what's the concrete reality now, given what's occurring in Gaza, and given that it's now being discussed as a potential pathway to peace, will both of your governments recognise Palestinian statehood at the UN General assembly, alongside the French president?

Lammy: Well, look, let me start by saying that the situation, the deteriorating situation we've seen in Gaza over the last few weeks is indefensible. The sight of children reaching for aid and losing their lives has caused consternation over much of the world. And that is why I repeat my call today for a ceasefire. A ceasefire that can see hostages released who've now been kept for so long away from their families and loved ones, and a ceasefire that would alleviate the suffering that we're seeing in Gaza. The belief in a two-state solution is steadfast in both of our countries. That is the only solution to the long-standing issues that we see in the region, and we have been committed in the UK for a long time in recognition and that the Palestinian cause is a just cause. And we have always wanted to recognise as part of a process, and we recognise that the situation in the West Bank is extremely concerning, with more expansion in the last year than we've we've seen in the decade previous, and a lot of settler violence as well. And that's why we announced a round of sanctions against those settlers and sadly against Ministers Smotrich and Ben-Gvir engaged in rhetoric and language that we thought was unacceptable. We will continue to work with partners as we head towards both the conference next week and then further activity in UNGA in September to get us towards a two-state solution. We remain absolutely steadfast in that ambition. And Prime Minister Starmer will be speaking to our partners in France and in Germany I'm hoping later on today, once again to coordinate on our efforts in Europe, as we have been coordinating here with Australian allies.

Wong: Thank you. As the Prime Minister said today in his statement, the situation in Gaza is beyond the world's worst fears and children are starving, civilians are dying. And you would have seen the statements, and most particularly the recent statement that we joined with the UK that again called for an immediate ceasefire for aid to flow unimpeded and made clear that what is occurring in Gaza in relation to the lack of aid and children and the deaths of civilians seeking to gain aid is indefensible. In relation to two states, I think you would have heard me say many times, I gave a speech in April last year where I said we no longer see recognition at the end of a peace process only and we remain committed to working with other countries towards a two-state solution. And why is that? It's the point that David made. It is ultimately the only hope of peace and breaking the cycle of violence and assuring the security and aspirations and peace for both Israelis and Palestinians. I also talked then about a number of challenges, including no role for Hamas in a future Palestinian state. We know Hamas continues to hold hostages. We are also seeing signs, and I think President Macron has spoken about this, of the Palestinian Authority seeking to play its part as a partner of peace. So, these are good steps, but what we need is a ceasefire. We need the hostages released and we need aid to flow urgently. 

Marles: Stephen Dziedzic at the ABC.

Journalist: Thanks very much, Secretary Healy. Earlier this year your department warned about serious potential shortcomings in the Rolls Royce program that will produce the nuclear core that will power both SSN AUKUS, but also the Dreadnought class submarine well down the track. Given the seriousness of these problems, what assurances can you offer to the Australian public who is making a financial contribution towards this program for AUKUS. And Defence Minister, can I ask what assurances you've sought over the last three or four months about this and whether you are confident acknowledging the long time frames we're talking about here, about the progress of this critical component of AUKUS? 

Healey: Thank you. Quite simply, we've stepped up the investment. We've stepped up the close work with Rolls Royce and the other major partners on the design and build program. We've also stepped up the investment in the productive capacity at our submarine building works in Barrow. And we as a government have made a commitment that we'll put £6 billion of investment in this parliament alone in making sure that we have the productive capacity, we have the technology and the designs to be able to deliver our commitments to the SSN AUKUS, and we will.

Marles: I think the way I'd start by answering this question is to say that we have seen this from the outset as a partnership. I mean we're fundamentally doing this together, which is obviously why we are making the financial contribution that we are to the UK system. But, but we are very much collaborating in terms of what is happening and we have been kept abreast at every moment from the UK in terms of the development of the Rolls Royce facility. I've been to the facility myself, I've seen the plans of its expansion-  I've actually seen items that have already been made which will find their way onto the first of the submarines that will come off the production line at the Osborne Naval shipyard in Adelaide in the early 2040s. So, the short answer to your question is the state of the partnership could not be better. It will be underpinned by the treaty that we sign in Geelong tomorrow. And I'm very confident about the way in which the industrial base in the UK will be able to deliver to see Australia being able to build our submarines in Adelaide.

Andrew Tillett from the AFR.

Journalist: Thanks Minister. For both Defence Ministers, this treaty obviously binds the two countries together for five decades on AUKUS. But if the US Pentagon review does recommend changes to the optimal pathway, even if it goes as far as recommending against transferring submarines to Australia, Virginia class submarines to Australia, does this treaty mean that Australia and the UK is prepared to go at alone together, the two countries together on nuclear powered submarines? Or is it a case if it's one out, it's all out.

Marles: Look, I might start in answering that. There's obviously a lot of speculation in the question that you've just asked, Andrew. But the AUKUS optimal pathway that was agreed back in March of 2023 is underpinned by a treaty that all three of our countries signed in Washington D.C. in August of last year. And we welcome the review which is being undertaken in the United States right now. But we are really confident about the progress of the AUKUS project and the progress in respect of all three countries. The treaty that we will be signing tomorrow is what in a bilateral sense underpins the trilateral treaty that we signed in August of last year. But, as others have said, as John very eloquently said earlier, what this does is underpin 50 years of cooperation between our two countries in what will be the biggest industrial endeavour that our nation has ever seen and will give rise to the biggest leap in military capability that our nation has had since, frankly, the establishment of the Navy back in 1913. It is a profoundly important treaty that we will sign tomorrow. It forms part of a trilateral agreement that we have and we are really confident about the progress of all three countries in bringing that to fruition.

Healey: Yeah, look, it's a, it's a three nation treaty. There are three nation benefits in this. I outlined the benefits to the US earlier on. Both our nations, Australia and the UK welcome the review because we see this as a chance for a new administration to renew their commitment to AUKUS and that's what we expect. And any sort of hypotheticals that you suggest simply aren't part of the picture.

Marles: Bernard Lagan, I hope I'm saying that right, at the Times.

Journalist: Thanks you. My question is to Secretary Lammy. You indicated the UK wishes to increase its defence presence in the Indo Pacific. Can you talk about why it wishes to do that? And can you talk about the intent, the intent of that new presence in terms of various platforms that we may see here. 

Lammy: You've heard the Defence Secretary say, and I've said the same, that the Euro Atlantic and the Indo Pacific are indivisible. It's why I was just a couple of weeks ago with my colleague Penny Wong at the ASEAN Conference, it is why we've got a commitment to CPTPP and it's why the carrier strike group are passing through the region at this time. It wouldn't be appropriate for me to comment on operations, but we do see concerning activity in the South China Sea. We believe in the rules based order, we believe in the laws and rules of the sea, and for that reason, and because we also see partnerships, for example the partnership between the DPRK and Russia in Ukraine that remind us of the indivisibility of these two arenas. That's why I'm here with the Defence Sec, that's why we'll be back. And I might say that when this government came to power first, I think I was the first visitor to this part of the world. So, for all of those reasons we remain engaged, we remain vigilant and pretty focused.

Journalist: (inaudible)

Healey: No, no. And the US were, the US had been an integral part of the planning of the whole carrier strike program. They were central to our ability to get the carrier group safely through the Red Sea. And we're proud that this is the first British aircraft carrier to be alongside Australia since 1997. And to add to David's point about the indivisibility of security in the Indo Pacific and the Euro Atlantic, we as a new government have published a Strategic Defence review, it underlines a NATO first policy, but not a NATO only policy. And so this carrier, Prince of Wales, will spend four months in the Indo Pacific. In the next four years, it will return to its core duties in the Euro Atlantic as the only the second qualified aircraft carrier in the world for fifth generation capabilities. And it will gain that through the Talisman Sabre exercise, through exercises that will follow off Japan and off Korea and then back in the Mediterranean. So, this is an in practice, a demonstration of how by combining our forces, by combining our exercises, we strengthen our deterrence, we strengthen our security, and we do so both in the Indo Pacific and in the Euro Atlantic. 

Marles: And finally, Andrew Probyn of Nine.

Journalist: My question is to David Lammy and to Penny Wong. It's also about Gaza. Israel is facing ever louder claims that it's using starvation as a weapon of war. And as you both said, the pictures that we're seeing are horrific. First, you Foreign Secretary, you say that the E3 is meeting in the next 24 hours or so. What practical measures are France, Germany and Britain looking at? Is it airdrops, is it building a pier? And to you, Foreign Minister, what practical measures can Australia come up with? Because no matter how hard the rhetoric, it doesn't feed starving children. And if I can add a question to the both of you, pardon me, it appears to me that you have neither ruled out supporting Emmanuel Macron in supporting Palestinian statehood in September.

Lammy: Well, let me say that as the UK Foreign Secretary, I made a quasi-judicial decision based on our own legal assessment back in September of last year. And I assessed that there was a clear risk of a breach of international humanitarian law. And on that basis, the UK Government decided to suspend arms sales that could be used in Gaza. And we remain very concerned about the malnourishment, the starvation that we're seeing. We have just recently increased our funding to UK-Med to support medical needs in Gaza. And when you ask about airdrops, we are discussing with partners in Jordan particularly what more we can do to alleviate the pain and suffering that we're seeing in Gaza at this time. But I repeat that a ceasefire is the quickest and easiest way to achieve that. And a sustained ceasefire that lasts, not a pause. What we saw last time is that when there was a ceasefire, there was a rapid increase in the amount of trucks going in. So, we know it can be done and that is what we have to achieve. And that is why we disagreed with Israel about the new aid system that they put in place. We warned and cautioned that reducing the 400 sites down to four sites would cause chaos, and chaos also that we feared would be exploited by Hamas. And we have seen that as well in recent times. We continue to work with our partners in France and Saudi Arabia. We are in close touch about the Two-State Conference and of course we will be present in New York next week. We're chairing the working group on the humanitarian side particularly, and as I have said, the Palestinian cause is a just cause. We recognise that there are those who do not believe in two states. Well, if you believe in one state, then you have to answer the question about equality for all citizens before the law. Or perhaps you believe in no state and no state is unacceptable to both the United Kingdom and Australia and the global community.

Wong: I think the first point I'd make, Andrew, is we all are distressed by the ongoing violence, the deaths of so many innocent civilians, the images of children starving, the humanitarian catastrophe that is worsening before our eyes. And we all want it to stop. We know Australia is not a central player. So, what do we do? We combine with others, such as the UK in our calls and our statements. We provide humanitarian aid, about $110 million to date, to the region. We work with Jordan and others to deliver the aid that we are able to. So, we do all of those things, recognising that ultimately what is required is an immediate ceasefire, the release of hostages and aid to flow unimpeded. In relation to two states, really I responded to your colleague previously. We are committed to making a two-state solution a reality and committed to working with other countries to making that happen. I've outlined the challenges associated with that. But ultimately, we end up where David has outlined. Where is the prospect of peace for both peoples, for Israelis and Palestinians, unless the international community and the parties can find a way to two states?

Marles: Well, as always, thank you, Penny. And on behalf of Penny and I, thank you again, John and David, for today's AUKMIN. We are very much looking forward to sharing a meal tonight. And thank you all for being here today.