🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

US says does not underestimate AUKUS task, confident it will be sustained politically

Published 06/26/2023, 03:25 PM
Updated 06/26/2023, 04:50 PM
© Reuters. FILE PHOTO: Chief of Naval Operations Admiral Michael Gilday testifies to the Senate Armed Services Committee about the Department of the Navy review of the Defense Authorization Request for Fiscal Year 2022 on Capitol Hill in Washington, U.S., June 22, 2

By David Brunnstrom and Eric Beech

WASHINGTON (Reuters) -U.S. Chief of Naval Operations Admiral Michael Gilday said on Monday the United States did not underestimate the difficulties ahead in realizing a three-nation project to supply Australia with nuclear-powered submarines and still did not know exactly where the initial batch of vessels would come from.

U.S. Indo-Pacific Coordinator Kurt Campbell told the same Washington event there was "every indication" the AUKUS project would be sustained politically in the United States and Australia, and that Washington was talking to a variety of countries about taking part in its so-called second pillar.

The multi-stage AUKUS project announced in March is planned to culminate in the late 2030s and early 2040s with British and Australian production and operation of a new submarine class - SSN-AUKUS - and include "cutting edge" U.S. technologies.

Before that, in the early 2030s, the United States is supposed to sell Australia three U.S. Virginia class nuclear-powered submarines, with an option for Australia to buy two more.

Big questions remain, however, not least over strict U.S. curbs on the extensive technology sharing needed and about how long it will take to deliver the Virginia-class submarines, given limited U.S. production capacity to meet its own needs, even as the perceived threat posed by China that inspired the project mounts.

Asked at Washington's Center for Strategic and International Studies think tank about the Virginia-class submarines, Gilday said it was still "too early to give you an answer on precisely where those submarines will come from, whether that's excess capacity or whether that comes out of U.S. inventory."

"We're trying to put the industrial base in a position where they can increase their productivity," he said, adding that the priority was still production of Columbia-class submarines for the U.S. Navy.

Gilday said the U.S. was "aspirational at this point" on reaching a production goal of two Virginia Class vessels a year, adding: "I can't give you a specific date when we expect to close on two, but we're headed in the right direction."

Gilday said he saw "huge potential" for other countries to become involved in selected parts of the second pillar of AUKUS, which involves hypersonics and other weaponry that can be deployed more quickly.

© Reuters. FILE PHOTO: Chief of Naval Operations Admiral Michael Gilday testifies to the Senate Armed Services Committee about the Department of the Navy review of the Defense Authorization Request for Fiscal Year 2022 on Capitol Hill in Washington, U.S., June 22, 2021.      REUTERS/Joshua Roberts/File Photo

This would depend on their ability to "bring technology to bear that is going to make a difference, and that we have high trust and confidence that we can share that information back and forth," he said.

Campbell said areas for involvement of "some allies and partners" in "either direct or niche areas" of pillar two could include hypersonics, cybersecurity, and anti-submarine warfare.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.