Massive AUKUS down payment sent ahead of US trip

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Massive AUKUS down payment sent ahead of US trip

Australia has underlined its commitment to the AUKUS submarine deal with a $800 million payment to the United States.

Defence Minister Richard Marles met with US Secretary of Defence Pete Hegseth in Washington on Saturday during a series of high-level meetings to strengthen the Australia-US alliance.

It is the first foreign counterpart Mr Hegseth has hosted since his confirmation in the role on January 29.

“I look forward to reaffirming Australia’s commitment to the Alliance, governed by our shared interests for a secure, stable and prosperous Indo-Pacific,” Mr Marles said ahead of the meeting.

Mr Marles revealed Australia had made a $US500 million ($797 million) down payment for AUKUS, well ahead of a June 30 deadline.

The funds are part of a larger package to speed up the faltering US submarine industry so it can supply between three and five Virginia-class boats to Australia by the early 2030s.

Mr Marles also met with key supporters of the AUKUS deal inside US Congress, including Democrat Joe Courtney.

Key members of the new Trump administration have backed the AUKUS, which will cost Australia up to $368 billion over 30 years.

But the returning president himself is yet to publicly endorse it, amid concerns he may try to renegotiate it.

The Congressional Research Service has previously warned of cost blowouts and delays as the US submarine industrial base comes under increasing pressure.

Australia is set to acquire at least three second-hand Virginia-class submarines from the US in the early 2030s, with a new class of nuclear-powered boats to be built for delivery from the 2040s.

The Albanese government is working hard behind the scenes to convince President Donald Trump not to slap tariffs on the nation’s exports, due to the trade surplus the US has with Australia.

Mr Trump has postponed sweeping new duties on goods from Canada and Mexico but will impose 10 per cent tariffs on ******** exports to the US.

with Reuters

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