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DEFENCE WEEK PREMIUM ISSUE 633 | NEWS | INTELLIGENCE | BUSINESS OPPORTUNITIES | EVENTS DEFENCE WEEK PREMIUM EDITION What does the BMS decision mean for platforms that have come to rely on it, both in service and those coming into Army? DEFENCE ELBIT BMS DECISION UPDATE After breaking the news last week that the Elbit Systems Australia Battle Management System (BMS) will be withdrawn from service from next week, Elbit Systems Australia Managing Director Major General (Retired) Paul McLachlan has made a statement about the situation. IN THIS ISSUE Elbit BMS decision update 1 ■ Building Islands and Influence: KATHERINE ZIESING | CANBERRA Chinese land reclamation in the Southwest Pacific 3 elow is the statement in full. CM234 Spitfire gimbal for Army B “Elbit Systems of Australia strongly refutes the tactical UAS 5 HIFraser to deliver fire safety to security rumours raised in recent media articles. Elbit Hanwha’s vehicle fleets 6 Systems of Australia utilises secure software develop- Thales Australia conducts ment processes in collaboration with the Department rocket motor test 8 Lockheed Martin and Varley of Defence, including the provision of all source code. team up on deployable cabins 9 “Elbit Systems of Australia will continue to work PLEXSYS’ ASCOT 7 to be integrated with next-gen closely with the ADF to deliver its network capabil- simulation system 10 ity requirements, utilising our 250-strong workforce, Kord selected for US Army including 80 military veterans and 100 systems and testing 12 software engineers. Forthcoming Events 14 ■ WWW.AUSTRALIANDEFENCE.COM.AU | DEFENCE WEEK PREMIUM ISSUE 633 | 06 MAY 2021 | 1 ADM’S DEFENCE WEEK PREMIUM EDITION: THIS PUBLICATION IS COPYRIGHT AND MAY NOT BE REPRODUCED IN WHOLE OR PART WITHOUT THE PERMISSION OF THE PUBLISHER. DEFENCE WEEK PREMIUM ISSUE 633 | NEWS | INTELLIGENCE | BUSINESS OPPORTUNITIES | EVENTS MOST READ ONLINE AT WWW.AUSTRALIANDEFENCE.COM.AU 1. Elbit BMS shut down 2. EOS and Palantir Australia partner on space operations exercise 3. War with China is not inevitable 4. More Chinooks for Army? 5. China’s massive satellite initiatives: Intrusion into space sovereignty “Elbit Systems of Australia is expanding and enhancing our proven ability to bring world – leading innovative technologies to meet Australian capability requirements for the ADF, homeland security and emergency management agencies into the future,” McLachlan concluded. Janes has also learned that “Army’s decision does not affect the Land 200 Tranche 2 acquisition contract, which we see progressing as previously agreed to, informed by our technical and financial reviews.” ADM Comment: This flies in the face of industry sources who note that in the past 12 months the program has failed two security related milestones and the Commonwealth enforced a stop ■ payment point last year. “THIS FLIES IN THE FACE OF Elbit must have known that they were heading INDUSTRY SOURCES WHO NOTE towards a decision point that was not entirely in their THAT IN THE PAST 12 MONTHS favour. The suddenness and nature of the cancella- THE PROGRAM HAS FAILED TWO tion however cannot be answered without calling into SECURITY RELATED MILESTONES AND THE COMMONWEALTH question the national security aspect. Back doors into ENFORCED A STOP PAYMENT such systems are well known and even expected in POINT LAST YEAR.” some cases. What has happened in this case? We ■ may never know the exact nature of the issue at this unclassified level. The is the nature of Defence. So where does this leave the capability? C4 EDGE is due to demonstrate their concept in November this year (keep an eye out for the June Land Forces edition of ADM for more on this program). The Australian Army selected Systematic’s SitaWare Headquarters (HQ) software to enhance its deployable command-and-control (C2) capabilities in November 2019. There is a good chance this can be expanded in the meantime as well. The system was rolled out to the Army’s deployed HQs operating at brigade-level and above. The Deployable Joint Force Headquarters (DJFHQ) – an element of the Brisbane-based 1st Division – was the first element to field the system. Regardless, the whole situation has left a bad taste all round. Was it the right deci- sion? Perhaps, time will tell. Was it executed poorly? Most certainly. ■ WWW.AUSTRALIANDEFENCE.COM.AU | DEFENCE WEEK PREMIUM ISSUE 633 | 06 MAY 2021 | 2 ADM’S DEFENCE WEEK PREMIUM EDITION: THIS PUBLICATION IS COPYRIGHT AND MAY NOT BE REPRODUCED IN WHOLE OR PART WITHOUT THE PERMISSION OF THE PUBLISHER. DEFENCE WEEK PREMIUM ISSUE 633 | NEWS | INTELLIGENCE | BUSINESS OPPORTUNITIES | EVENTS The Micronesian atoll of Kapingamarangi viewed from a RAAF C-130J Hercules. DEFENCE BUILDING ISLANDS AND INFLUENCE: CHINESE LAND RECLAMATION IN THE SOUTHWEST PACIFIC The Pacific Island countries (PICs) face the most severe and immediate consequences of global climate change. The Tarawa atoll in Kiribati, for example, has a maximum elevation of three meters above sea level. For the 63,000 residents of the island, there is no higher ground to fall back to against worsening storm floods, erosion, and rising sea levels. ■ NITYA LABH AND LUCAS HAUSER | VIRGINIA he choice is simple, fortify the island through engineering at significant financial Tcost or do the unthinkable — leave. Eight Pacific islands already have disappeared and more will follow. As the impact of climate change worsens, the need for mass relocation will increase while migration opportunities remain limited. With few options, PICs are turning toward island build- ing as a solution. “I firmly believe that island building is going to have to happen,” Mark Stege, Councilman of the Maloelap Atoll in the Marshall Islands, said. One town in Tuvalu already has a US$300 million plan to raise the land 10 meters above sea level to build high-density housing. PIC leaders see land reclamation as an option of last resort—one that is costly and appears increasingly necessary. ■ WWW.AUSTRALIANDEFENCE.COM.AU | DEFENCE WEEK PREMIUM ISSUE 633 | 06 MAY 2021 | 3 ADM’S DEFENCE WEEK PREMIUM EDITION: THIS PUBLICATION IS COPYRIGHT AND MAY NOT BE REPRODUCED IN WHOLE OR PART WITHOUT THE PERMISSION OF THE PUBLISHER. DEFENCE WEEK PREMIUM ISSUE 633 | NEWS | INTELLIGENCE | BUSINESS OPPORTUNITIES | EVENTS Amid this difficult situation, China is well positioned to capitalise on its island-building capabilities to offer PICs a much-needed service, as well as financing. Regionally, China dominates the market for land reclamation services. China has provided such services in Malaysia’s Forest City, Sri Lanka’s Port City Colombo, and near the Ream Naval Base in Cambodia. China also has proposed land reclamation projects in Kiribati and Tuvalu. Land reclamation is expensive and many PICs already have growing debts to China. For example, Tonga, Samoa, and Vanuatu are among the most heavily indebted coun- tries to China in the world. Exploitive lending practices ■ accompanying future Chinese land reclamation projects “EVEN MORE TROUBLING IS THE can give Beijing even greater influence in the region. POSSIBILITY THAT GROWING According to China’s ambassador to Vanuatu, CHINESE INFLUENCE WILL Liu Quan, “there is no free lunch” when it comes LEAD TO AN INTELLIGENCE OR to Chinese financial assistance. Leaders in Vanuatu MILITARY PRESENCE IN THE seem to understand this expectation, pledging SOUTHWEST PACIFIC” Vanuatu’s support for China’s territorial claims in the ■ South China Sea in 2016. In extreme cases, China’s lending could grant it access to or ownership of strategically significant infrastructure in exchange for repayment. There is little evidence to suggest China is currently pursu- ing such “debt trap diplomacy” in the Southwest Pacific, but land reclamation provides a clear opportunity to do so in the future. The demand for and high cost of land reclamation projects in the PICs make such projects an ideal vehicle for Chinese economic coercion. China’s growing influence in the Southwest Pacific has the potential to threaten the allied defence posture in the Western Pacific. Uncooperative or neutral Pacific Island Countries could complicate allied military transit and communication in the region. Even more troubling is the possibility that growing Chinese influence will lead to an intelligence or military presence in the Southwest Pacific, expanding China’s power projection capabilities. Cooperative PICs could potentially provide Beijing with a foot- hold beyond the First Island Chain, increasing the threat to Australia, and diverting the United States’ and allies’ focus from China’s near seas. To address this threat, Australia and the US should adopt a three-pronged strategy. First, Australia and the US should increase their intelligence gathering in the region to gain a better understanding of Chinese activities. Second, with improved situational awareness, the allies could engage in regional public diplomacy to highlight Chinese predatory practices, while also providing diplo- matic and legal assistance to PICs seeking Chinese land reclamation and infrastruc- ture building services. ■ WWW.AUSTRALIANDEFENCE.COM.AU | DEFENCE WEEK PREMIUM ISSUE 633 | 06 MAY 2021 | 4 ADM’S DEFENCE WEEK PREMIUM EDITION: THIS PUBLICATION IS COPYRIGHT AND MAY NOT BE REPRODUCED IN WHOLE OR PART WITHOUT THE PERMISSION OF THE PUBLISHER. DEFENCE WEEK PREMIUM ISSUE 633 | NEWS | INTELLIGENCE | BUSINESS OPPORTUNITIES | EVENTS Third, Australia and the US should encourage and invest in their private sectors so that companies can provide PICs with the desired island building services. By limiting the exploitive aspects of China’s lending and providing competing ser- vices, Australia and the US can prevent Beijing from using sea level rise as a means of gaining influence in the Southwest Pacific. Ultimately, the allies’ ability to counter non-traditional security threats in the Pacific relies on their ability to organize and inte- grate capabilities along the continuum of conflict. Note: Nitya Labh is a research fellow at the Project on International Peace and Security and previously worked as a research assistant for the United States Defense Advanced Research Projects Agency (DARPA).