SYDNEY, Oct 14 (Reuters) - Australia will make a second
billion-dollar payment to boost U.S. nuclear submarine shipyards
soon, Defence Industry Minister Pat Conroy said in Washington on
Tuesday, ahead of an official visit by Prime Minister Anthony
Albanese next week.
The AUKUS agreement to transfer nuclear-powered submarines
to Australia is being reviewed by the Pentagon, although
Australia has expressed confidence the deal, which also includes
Britain, will proceed.
In its first phase, Australia has pledged 3 billion U.S. dollars
to boost U.S. submarine production rates, to later allow the
sale of three Virginia submarines to Canberra, with a 2025
deadline for the first $2 billion.
"We've made a billion dollars. The plan is to provide
another billion dollars shortly," Conroy told reporters in
Washington, where he said he is meeting with Trump
administration and defence industry officials.
Albanese will travel to Washington next week for an official
visit and his first formal meeting with U.S. President Donald
Trump, with the AUKUS defence partnership expected to be a focus
of talks.
Defence Minister Richard Marles told reporters in Canberra
on Tuesday that Australia was contributing to a Pentagon review
of AUKUS and had "a sense of when this will conclude", without
disclosing the timing.
Australia is shifting to a model of defence co-development
and co-production with the United States, including for the
manufacture of guided weapons, and Albanese would highlight this
to Trump, Conroy said.
Australia expects to manufacture up to 4,000 Lockheed Martin ( LMT )
guided missiles annually from a new factory to begin production
by the end of the year, including supplying U.S. defence needs,
he said in a television interview with Sky News Australia.
Australia is also working with the United States and Lockheed
Martin ( LMT ) to develop a longer range Precision Strike
Missile reaching "in excess of a thousand kilometres", he added.
"This is one example of us shifting to a co-design,
co-development, co-production, co-sustainment model where we
work in partnership with the United States and deepen the
industrial base of both countries," he said.
(Reporting by Kirsty Needham in Sydney)