LECTURE DELIVERED JULY 17, 2012 No. 1217 | NOVEMBER 2, 2012

The Australia–U.S. Alliance and Leadership in the Asia–Pacific The Honorable

Abstract IM R. HOLMES: I am pleased The Administration has indicated that Kto welcome the Honorable Key Points it plans to “pivot” America’s security Tony Abbott, Leader of the focus to Asia. The Administration’s Opposition in the Australian House ■■ America needs to believe in itself plans to downsize the U.S. military, of Representatives, to The Heritage the way others still believe in it. however, can only mean a reduced Foundation. Mr. Abbott is the leader America is exceptional, and Aus- U.S. presence globally and greater of the of Australia and tralia wants America to succeed because a strong America means strain on our forces and equipment a Member of Parliament since 1994. a safer world. wherever they are deployed. Allies like At Heritage, we believe in the Australia are trying to understand importance of the U.S. alliance with ■■ Australia’s relationship with the implications for the Asia–Pacific Australia. It is critical not only for America makes it a better neighbor. Australia’s ties with of America’s shifting priorities. The our mutual security and the security the U.S. give it more standing in Honorable Tony Abbott, Leader of the of the region, but also for spread- the region, and this makes it a Opposition in Australia’s House of ing freedom and the values we share more valuable ally for the United Representatives, discusses America’s worldwide. States. global role, the Australia–U.S. No doubt you’ve heard of the ■■ A China that was freer as well as relationship, and the importance of Obama Administration’s so-called richer would be the best guaran- the Australia–U.S. security alliance in pivot to Asia. We certainly appreci- tee of peace and stability in the the Asia–Pacific region. ate the focus the Administration Asia–Pacific region. is bringing to the many challenges ■■ Geography alone will not keep there—North Korea’s nuclear prolif- Australia economically strong eration and China’s military buildup even in an Asian century. There- among them. We believe, however, fore, the next gov- that rhetoric must be backed up by ernment will cut unnecessary action. The Administration’s plans to government spending, get debt down, and seek efficiencies in downsize the U.S. military can only defense spending, but never at mean a reduced presence globally This paper, in its entirety, can be found at the expense of defense capability. http://report.heritage.org/hl1217 and greater strain on our forces and Produced by the Asian Studies Center equipment, and allies like Australia The Heritage Foundation are certainly taking notice of these 214 Massachusetts Avenue, NE Washington, DC 20002 plans. (202) 546-4400 | heritage.org Last year, Heritage took a hard Nothing written here is to be construed as necessarily look at security in the region. We reflecting the views of The Heritage Foundation or as an attempt to aid or hinder the passage of any bill spearheaded a joint project that before Congress. culminated in calls for the U.S., lecture | NO. 1217 DELIVERED JULY 17, 2012

Australia, and India to build a strong thanks to you and The Heritage of the Atlantic. In a few pithy lines, trilateral relationship. We partnered Foundation for the opportunity to Tennyson encapsulated the mar- with researchers from the Lowy talk here in Washington. This is an riage of liberalism and conservatism Institute for International Policy in internationally known and interna- in our tradition when he spoke of “a Australia and the Observer Research tionally regarded foundation. I do land of just and old renown where Foundation in India to conduct that very much value the opportunity to freedom broadens slowly down study. I had the pleasure of launching speak to it. from precedent to precedent.” This it in Sydney, Australia. The United States is an excep- is the heritage of the Magna Carta, I am pleased to welcome Mr. Tony tional nation. I think that is a mes- the Provisions of Oxford, and the Abbott to Washington, D.C., for this sage which you sometimes need to Glorious Revolution, which the presentation. Mr. Abbott was elect- hear from countries that might often Minutemen asserted against King ed to the official position of Leader be inclined to take the U.S.’s involve- George and which this foundation of the Opposition in 2009. He was ment, interest, and benevolence for celebrates. already well familiar with what that granted. When the Royal Navy thwarted role would entail, having begun his It was the U.S. Information the ambitions of Napoleonic France, political career in 1990 as press Agency that organized my first trip to when Britain and her Empire stood secretary and political adviser to America as a Member of Parliament. alone against Nazi Germany, and then-Leader of the Opposition John I’d just been elected as a Liberal when President Reagan urged Mr. Hewson. His distinguished career Party MP and had previously been Gorbachev to tear down the Berlin includes service as Cabinet Minister one of the leading opponents of Wall, world history was shaped for for Employment, Workplace Australia becoming a republic. the better. Representative democ- Relations and Small Business, as well Something happened in transla- racy, impartial courts, the liberty as Leader of the House and many tion, though, because my U.S. hosts of the press, and freedom under the other positions. had been told that I was very lib- law now seem close to universal A Rhodes Scholar, Mr. Abbott also eral and strongly anti-Republican. aspirations. holds degrees in economics and law So I spent most of my fortnight in Given America’s role, it can’t quite from Sydney University. A former America being introduced to virtual be said that the modern world has journalist, he has authored three Communists. Perhaps this was an been made in England, but it has books, The Minimal Monarchy: And illustration of the capacity of govern- certainly been shaped in English. Why It Still Makes Sense for Australia, ments to get things wrong, in this English-speaking countries have How to Win the Constitutional War: country as well as in my own. In any beckoned to people everywhere, And Give Both Sides What They event, it’s good, finally, to find myself especially in troubled times, harken- Want, and Battlelines. We look for- amongst like-minded Americans. ing to the immortal words inscribed ward to hearing his thoughts on As our former prime minister, on the Statue of Liberty: “Give me how Australians see our alliance, as , often pointed out, the your tired, your poor, your huddled well as America’s role in the world, Liberal Party is the custodian in masses yearning to breathe free.” and the current challenges to Asia– Australia of both the classical liberal Pacific security. and the conservative political tradi- America as Idea Ladies and gentlemen, please wel- tions. The Heritage Foundation’s I don’t normally quote President come The Honorable Tony Abbott. support for free enterprise, limited Bill Clinton, but he was grasping at a —Kim R. Holmes, PhD, is Vice government, individual freedom, tra- deep truth when he observed of the President, Foreign and Defense Policy ditional values, and strong national United States, “We’re not one race…. Studies, and Director of the Kathryn defense and its mission to promote We’re not one ethnic group. We’re not and Shelby Cullom Davis Institute for freedom, opportunity, prosperity, one religious group…. But you read International Studies at The Heritage and civil society closely correspond the Declaration of Independence and Foundation. with the objectives of my own party. the Constitution and you’ll find that The quest for freedom is the this country is an idea.” The noble HE HONORABLE TONY defining characteristic of the story idea, the uplifting idea that each per- TABBOTT: Thank you very much of England, but it has arguably been son should be free to become his or indeed for that introduction, and taken to a new pitch on this side her best self—that, I’m sure, is what

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the Founding Fathers meant when they’re always well-intentioned, even A Dominant or they declared “these truths to be if others are tempted to conclude, Declining Power? self-evident, that all men are created with Graham Greene of The Quiet So, ladies and gentlemen, the equal, that they are endowed by their American, that he’d never known a question now being pondered right Creator with certain unalienable man with such good intentions for all around the world, and especially in Rights, that among these are life, lib- the trouble he’d caused. Washington, fuelled by the rise of erty and the pursuit of happiness.” Australians are less self-con- China, an inconclusive and unpopu- So the United States and Australia sciously idealistic than Americans, lar war, and congressional gridlock are separate legal entities, but few but Prime Minister Ben Chifley’s here, is: Have we reached a tipping Australians would regard America as “light on the hill…working for the bet- point in history? Has the United a foreign country. We are more than terment of mankind, not just here, States passed from being a dominant allies. We’re family. Around the world but wherever we can lend a helping to a declining power? we seek no privileges, ask no favors, hand” might be considered an antip- Facts, as opposed to fears, support crave no territory. Our objectives are odean version of Ronald Reagan’s no such conclusion. to promote trade, prevent aggression, evocation of a “shining city on a hill.” First, America remains by far and, where possible, to foster democ- Australians have been proud to go the world’s largest economy and has racy based on the rule of law. into battle with Americans, starting no systems-shaking transitions to at Le Hamel when Pershing’s dough- manage. Few Australians would regard boys fought under Australian com- Second, the world instinctively America as a foreign country. mand and subsequently in the Pacific, looks to America and to like-minded Vietnam, Iraq, and Afghanistan. countries whenever trouble looms or We are more than allies. We’re The United States shouldn’t take disaster strikes. family. Around the world Australia’s support entirely for Third, other countries’ success we seek no privileges, ask no granted. Australia’s national inter- largely depends upon and substan- favors, crave no territory. est might not always be identical tially vindicates American traits with America’s. Our values, though, such as intellectual curiosity, eco- Our objectives are to promote invariably coincide, and Australia’s nomic innovation, and political trade, prevent aggression, foreign policy should be driven liberalization. and, where possible, to foster as much by our values as by our Finally, the more other countries democracy based on the rule of interests. come to resemble America, the more The United States has been likely they are to be forces for good in law. responsible for the Marshall Plan, the wider world. the Peace Corps, and the Gates What’s remarkable right now is Narrow self-interest would have Foundation. Australia has to its cred- that, perhaps for the first time, the kept America out of Iraq, as it did it the Colombo Plan and Australian world appears to have more con- the French and German govern- Volunteers Abroad. Not since the war fidence in America than America ments of the time. It would have kept with Mexico has America used force does in itself. America does have to Australia out of East Timor. Likewise, to extend its territory. beat its dependence on other coun- narrow self-interest would have kept An exasperated Winston tries’ savings. Over time, America’s America out of the toughest parts Churchill, desperate for allies, economic preponderance is likely to of Afghanistan, at least once the might once have remarked that the diminish. These are new and testing Taliban had been defeated. Money, “American can be trusted to do the circumstances, perhaps more testing not military power, would have been right thing, but only once all other than any since the end of the Cold enough to secure oil supplies. Stand- possibilities have been exhausted,” War, but that just makes desponden- off missiles, not boots on the ground, but the better view, it seems to me, is cy, let alone defeatism, more corro- would have normally been enough the one attributed to de Tocqueville: sive than usual. to eliminate terrorists and degrade that America is great because It’s possible to see the fall of their bases. America is good, and if America ever autocratic regimes such as Egypt’s America’s military expeditions ceased to be good, she would also Mubarak government as the replace- may sometimes be mistaken, but cease to be great. ment of the West’s friends by its

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enemies. On the other hand, it’s also Still, security agencies’ decade- percent into net assets of 5 percent possible to see the Arab Spring as long ability to prevent a September of GDP. With remarkably little fuss, the first expression of an incipient 11–scale atrocity or worse suggests the Key government in New Zealand movement towards greater demo- that relentless, painstaking, coopera- is on track to reduce government cratic accountability. Wherever they tive effort can pay off. As major war spending from 35 percent to just 30 are—Egypt, Libya, Syria, or Burma, between nation-states becomes less percent of GDP in the five years from to name just a few recent exam- likely—at least between states that 2009 by cutting or eliminating some ples—oppressed peoples invariably are not apocalyptic theocracies—this programs and reducing the rate of appeal to America and its allies for is the unthinkable disaster to be increase of others, but above all by help. They may not like all aspects of avoided at any cost and which the boosting economic growth. Western democracy, but they appre- world’s energies must be dedicated to ciate its singular benevolence. averting. But there are other issues. America and the It would, of course, be altogether Asian Century premature to declare victory in the Industrial-scale terrorism It’s now conventional wisdom campaign against Islamist terrorism. is an ever-present possibility to speak of the coming Asian cen- Still, the death of Osama bin Laden tury, but the Asian century will be and the killing or capture of most of in the contemporary world. an Indian century and a Japanese his principal lieutenants is a historic The nightmare scenario is century as well as a Chinese one. It achievement. Islamist fundamental- ideological fanatics acquiring will be an American century, because ism will only be defeated when the a nuclear weapon and the United States is an Asia–Pacific Muslim world more fully comes to power as well as an Atlantic one. detonating it in a major city. terms with pluralism, but the fact The economic empowerment of that terrorists now find their fellow Nothing would more test the billions of people in China, India, Muslims much easier to attack than magnanimity and judgment of and Indonesia on top of the hundreds Westerners should hasten the day the world and its leaders. of millions in Japan, Korea, Thailand, when Islamist terrorism will be seen and Malaysia who have already as a fratricidal aberration. joined the middle class is truly one of Nuclear proliferation remains a Recurrent euro bailouts and the great watersheds in human histo- huge challenge. Pakistan is a nuclear- America’s perennial budget deficits ry. This has taken place because sci- armed failing state. Iran is resolved are serious economic and political entific knowledge, market freedoms, to acquire nuclear weapons. But acci- failures, but they don’t constitute and, over time, elements of political dents seem to have befallen poten- a crisis of capitalism. As long as reform have come to the Asia–Pacific. tially hostile programs, and no one economic jitters send the world’s In other words, the Asian century, to seems to be in any doubt about the money into the U.S. dollar, it’s hard the extent that it does comes to pass, consequences of nuclear delinquency. to see tough times as markers in the will be less a repudiation of Western Over time, security agencies seem to decline of the West. For most of the values than a vindication of them. have become better at distinguish- world, the whole point of growing China’s contemporary eco- ing between those who would make richer is to be able to enjoy more of nomic advance, for instance, began peace and those who would make the movies, music, fashion, pastimes, with Deng Xiaoping’s repudiation war and at suitably dealing with and consumer goods of America of central control of the economy them. and Britain and to adopt the kind of and embrace of private ownership. But industrial-scale terrorism lifestyle enjoyed by the residents of While so far maintaining its monop- is an ever-present possibility in the Western cities. oly of political power, the Chinese contemporary world. The night- Despite any entitlement mindset, Communist Party (unlike its former mare scenario is ideological fanat- it is possible to get debt and deficits Soviet counterpart) doesn’t seek to ics acquiring a nuclear weapon and under control. The Howard gov- export its system and faces constant detonating it in a major city. Nothing ernment in Australia, for instance, pressure to allow more internal would more test the magnanimity turned an inherited 1 percent of GDP democracy. and judgment of the world and its deficit into consistent 1 percent of A China that was freer as well as leaders. GDP surpluses and net debt of 10 richer would be the best guarantee

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of peace and stability in the Asia– that it benefits the world rather than wider region. Eventually, the Darwin Pacific region. Real democracies, strategic where it might threaten it. facility could be an opportunity for after all, have never gone to war Tension between China and multilateral as well as for bilateral with each other. Between democra- Taiwan, for instance, seems to be defense training and exercise. cies, common interests might wax abating thanks to greater economic or wane and irritants might fester, integration between mainland and Australia and Asia but we have much the same ways of overseas Chinese. Economic com- Ladies and gentlemen, the con- thinking about problems and much petition, after all, is not a zero-sum servative side of Australian politics the same means of resolving them. game. This is a practical demonstra- has long supported closer links with Democracies have different tion of the potential for economic Asia as well as stronger ties with histories, but in important ways, and political liberalization to create our traditional friends and allies. It they inhabit the same mental uni- a more benign world. was Prime Minister Menzies, after verse and speak the same language. all, who first referred to South East Sharing liberal democratic values is A China that was freer as Asia as the “near north” and not the akin to sharing a culture—a politi- well as richer would be the “far east.” The Menzies government cal culture at least—providing a launched the Colombo Plan for the common set of ideas and a common best guarantee of peace and potential future leaders of our region framework of thinking and mutual stability in the Asia–Pacific to study in Australia and signed the understanding. region. Australia–Japan trade deal. It was In the meantime, admittedly, Asia the Holt government that ended the has numerous strategic flashpoints. The right response to the rise of . The Fraser These include North Korea’s nuclear China is not to begrudge its growing government began large-scale Asian program, territorial disputes in the economic strength, but to welcome it immigration. The Howard govern- seas off China, and, of course, any and even to foster it. As Mitt Romney ment dramatically boosted trade attempt to enforce China’s claim to declared in 2008, a strong China is with China. Taiwan, as well as the perennial ten- not just a billion competitors but a The Liberal and National parties sion between India and Pakistan that billion customers. That, in any event, that I lead have just committed to a terrorism could inflame. A web of was the response of the Howard gov- new version of the Colombo Plan that alliances means that serious military ernment, which famously declared would send young Australian lead- conflict in the region does have the that Australia had no need to choose ers to study in Asia as well as vice potential to draw in America and its between its history and its geography. versa and to have at least 40 percent partners. This point was illustrated in 2003 of school leavers studying a foreign Obviously, China’s increasing when U.S. President George W. Bush language. Should the Coalition be economic strength is being matched and Chinese President Hu Jintao elected at the next Australian poll, by increased military capability, but addressed the Australian parliament Jakarta would be my first overseas the richer and more sophisticated a on successive days. Australia doesn’t visit. Of course, the next Coalition people become and the more access have to choose between our neigh- government would stand up for they have to information, the less bors and our friends because our Australia’s interests and values, but likely they are to be impressed by neighbors are also our friends and it would appreciate that this is best militarism. Stronger countries have because our best friends are increas- done by engaging with the region. more and more capacity to make ingly at home in our neighborhood. It should go without saying that trouble, but they also have less and America is boosting its involve- geography won’t keep Australia eco- less incentive to do so. The stron- ment in the Asia–Pacific, not scal- nomically strong even in an Asian ger they are, the more they have to ing it back. The U.S. is supporting century. Australia’s moment in lose, especially in conflict with other the Trans-Pacific Partnership to the Asian century could be missed major powers. Invariably, economic reduce trade barriers and has joined through complacency. To this end, success means more integration with the annual East Asia Summit. The the next Coalition government will other countries as well as more com- decision to rotate a Marine brigade remove unnecessary new taxes, cut petition with them. The challenge is through Darwin is part of America’s $1 billion a year from business com- to keep the competition economic so bid to improve security ties with the pliance costs, and boost workplace

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productivity. We will cut unneces- fear is fear itself. America is excep- your military capability, given that sary government spending and get tional, so exceptionalism has its place. Australia’s military capabilities are debt down. We will seek efficiencies Ladies and gentleman, American not vast to start with. Certainly, the in defense spending, but never at the world leadership might only truly last thing you want to do is to dismay expense of defense capability. be appreciated were it to disap- our friends and allies at what is for Australia’s relationship with pear. None of us should want to find everyone a difficult time. America does not isolate us from out the hard way what a shrunken QUESTION: Obviously, the gov- our neighbors. It makes us a bet- America might mean. Australia wills ernment in Canberra may change ter neighbor. Our ties with the U.S. America to succeed because a strong very soon, but also, listening to you give Australia more standing in the America means a safer world. describe the portion of the world region. Conversely, our standing in Ladies and gentleman, thank where Australia is, there’s a lot of the region makes us a more valuable you so much for the opportunity to change out there, and within a year ally for the United States. speak to you today in this capital of you may well see changes of govern- Australia will continue to respect America—in a sense, the capital of ment in Korea if Park Geun-hye, the China’s economic achievement and the world. daughter of President Park, is elect- to strive to improve the relationship ed; in Japan when the Noda govern- on everything where we can sensibly Questions & Answers ment goes and if the LDP wins; and work together. We will try to avoid Question: Last week Admiral Indonesia, which has already seen indulgent gestures over, for instance, Samuel Locklear III, the PACOM some change in the state of Jakarta live cattle sales to Indonesia or ura- commander, was touring Australia, right now. Do you assess any of these nium sales to India where our friends and he made a comment about his changes in that part of the world as want us to be a secure source of sup- concerns over the reduction of the being more pro-U.S. or moving away ply. We intend to play our part in the Australian defense budget and that from the U.S.? wider world through contributing to this seemed to be a reversal of the MR. ABBOTT: I would be con- humanitarian relief and fully par- 2008 white paper. Now it’s 1.5 per- fident that change in Japan and the ticipating in the security partnership cent, which is less then most of our change in South Korea, should it hap- with our principal allies. NATO Allies. Would you like to com- pen, would not be seriously adverse Now, ladies and gentleman, over ment on his concerns? to the U.S. or to Australia, for that the past decade, there’s been much matter. I have to say that the advent “expert” advice that Australia would Australia’s relationship with of a new president in Indonesia will be a better ally by ostentatiously America does not isolate us obviously pose some challenges if refusing to participate in America’s only because President Yudhoyono so-called follies, such as Iraq and from our neighbors. It makes us has been a remarkable friend to Afghanistan. To their credit, both the a better neighbor. Australia. and the Rudd/ Australia’s relationship with have refused to MR. ABBOTT: I can under- Indonesia is sometimes one that carp from the sidelines. These days, stand his concern, and I think lots of requires management—consider- America does not need to be told Australians share his concerns. As able management—and I have to say where it is going wrong, but where it a result of defense cuts in the recent that it would certainly have been is going right. budget, Australia’s defense spend- the experience of my distinguished By a large margin, the United ing as a percentage of gross domestic predecessor as Liberal Party leader, States has the best universities, the product is now at the lowest level John Howard, when he was prime most creative research, the most since 1938. That is a quite a concern, minister, that Australia could hardly sophisticated intellectual property, given that we do not live in a benign have had a better friend in the region and the most accomplished high-end environment. We do not live in than President Yudhoyono. So let manufacturing. America needs to benign times. us hope that the next president of believe in itself the way others still I don’t say that savings are impos- Indonesia is a man of his tempera- believe in it. It needs once more to sible in defense, but I do think that ment, caliber, and values. take to heart President Roosevelt’s it is irresponsible to save money in QUESTION: Regarding your advice that the only thing we have to defense in a way that compromises views about the so-called Arab

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Spring, do you feel that democracy QUESTION: We had a great alli- make environmental sense. We will really is an end in itself if it leads to ance in opposing the Kyoto Protocol establish this emission reduction extremists being elected? until your Labour government fund; there’ll be about $1 billion a MR. ABBOTT: England, if I may ratified it. Now the Harper govern- year in it, and that will promote tree go back to the country which has ment in Canada has pulled out of planting, more carbon in soils, which spawned so much that is good in the the Kyoto Protocol. So there are now should help agricultural productiv- modern world, was a liberal society still two major nations that are not ity. It will foster smarter and cleaner long before it was democratic. I think going along with worldwide energy technology. there is a big difference between lib- rationing. Besides getting rid of the One of the little-known features eral democracy and simple democ- carbon tax, are you prepared to of Australia’s economy over the racy, and obviously I would prefer to pull Australia back out of the Kyoto last couple of decades is that we’ve see a democracy that is liberal than Protocol? reduced our emissions intensity democracy which simply enshrines a MR. ABBOTT: I think it’s impor- by 50 percent without a carbon tax kind of majoritarian totalitarianism. tant to do what we reasonably can as businesses have taken sensible That said, I think that there is to reduce emissions. Argument will measures to cut their power bills, wisdom in the body of a people. The rage backwards and forwards about improve their fuel efficiency. There body of some people might be less the magnitude of the climate change is a company called Linfox, which is wise than the bodies of other people; issue. My prudent response to the our biggest transport company, that nonetheless, I think that generally possibility of a significant threat is reckons they’ve cut emissions by 35 there is more wisdom in the body to take reasonable steps to combat percent by training their drivers to of the people than there is in any it, and I think where you can reduce take their foot off the accelerator smaller group. So I think that democ- emissions without doing enormous pedal. racy is a good thing in the Arab world damage to your economy, you should So there are lots and lots of things as well as elsewhere, although I do go about that. you can do which don’t destroy your absolutely concede that the autocrats We have what I’d like to think is a competitive position, which aren’t an of the Middle East were perhaps much smarter way of reducing emis- unreasonably impost on taxpayers, friendlier to the West and to Israel sions than the government with its and which do objectively improve the than emerging democracies might at carbon tax. Instead of penalizing environment apart from hitting us least initially be. The challenge is to businesses that emit, we are propos- with a great big new tax. That’s why I do our best to deal with these emerg- ing to offer incentives to businesses think what the current government ing democracies in a humane and and organizations that can take steps is doing is so economically irrational decent fashion and hope that that’s to reduce their emissions in ways and so environmentally ineffective. reciprocated. that would, in any event, otherwise

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