Submarine Proliferation

Australia Export Behavior

Capabilities | Import | Export

Collins leaving Port Adelaide for trials.
Source: Royal Australian Navy Website, http://www.navy.gov.au

Australia is not currently a submarine exporter, though it has been interested in export activities. Close ties to a US contractor, while potentially providing ASC a design capability, could also limit the ASC's chances of servicing the re-emerging Southeast Asian market, due to US concerns over technology transfers. It has been reported that South Korea was showing an interest in a combination of Collins-class and Gotland-class vessels in 1998.[1] The ASC did attempt to obtain a contract to export submarines to Taiwan, but the Australian government, which has a "One-China" policy, did not grant the company an export license.[2] However, according to RAN officers, the US Navy has pressured General Dynamics' Electric Boat to purchase a 40 percent stake in ASC and transfer enough technology to facilitate the construction of boats for Taiwan.[3]

While past prospects have been dampened by the Asian economic crisis, aging submarine flotillas in the region need replacement. According to some analysts, there is an expected demand for up to 30 vessels in this region.[1] Australia could thus join the ranks of submarine exporters, having gained significant experience and technology from Kockums to construct Collins-class submarines. A senior RAN official illustrated the mutually beneficial relationship between the RAN and domestic industries: Australian companies were able to gain technological advances from RAN procurement orders, which they can market internationally. In turn, to sustain domestic naval capacities and thereby the Australian Defence Force, Australia needed to facilitate access to international markets and exports.[4]

Sources:
[1] David Moodie, "Korean Navy looks at buying three of our subs," The Advertiser, 30 October 1998; in Lexis-Nexis Academic Universe, http://web.lexis-nexis.com.
[2] Peter Chen, Central News Agency, 7 November 1997; in "CNA carries Australian item on blocked submarine exports," FBIS Document OW0711113797.
[3] "Intelligence," Far Eastern Economic Review, 6 September 2001; Vol. 164, No. 35, pp. 10-11; in ProQuest Information and Learning Company, http://proquest.umi.com/pqdweb.
[4] Interview with Rear Admiral Kevin J. Scarce, RAN Head Maritime Systems by Jan Wiedemann, "Procurement programmes of the Royal Australian Navy," Naval Forces, 2001, Vol. 22, No. 6, pp. 87-90; in ProQuest Information and Learning Company, http://proquest.umi.com/pqdweb.

This material is produced independently for NTI by the James Martin Center for Nonproliferation Studies at the Monterey Institute of International Studies and does not necessarily reflect the opinions of and has not been independently verified by NTI or its directors, officers, employees, agents. Copyright © 2007 by MIIS.