Rudd flags arms build-up

AUSTRALIA: Australia will rapidly beef up its naval strength and extend a A$60 billion ($48 billion) arms build-up to counter the growing military power of neighbours in the Asia-Pacific region, Prime Minister Kevin Rudd said.

Rudd, in a speech to veterans late on Tuesday, said the modernisation of Asian military forces, including advanced naval submarine and air combat capabilities, meant Australia needed its own substantial arms increase over time.

"The demographic changes in our region will mean that by 2020 when we look to our north, we will see a very different region to the one we see now, one where population, food, water and energy resource pressures will be great," Rudd said. "The Asia-Pacific will become a much more contested region.

"We need to make sure we have an Australian Defence Force that can answer the call if it is needed. The truth is our defence has been overstretched for a long time," Rudd said, adding Australia must keep its global "middle power" status. Rudd did not spell out which countries in Asia could pose a threat to Canberra a close U.S. ally but Australian military planners are wary of China's arms build-up and the expanding reach of India's military. Both neighbouring Indonesia and Malaysia are also building more powerful air forces equipped with modern Russian aircraft.

Rudd said the United States would remain "strategically dominant" and be the bedrock of Australia's future security alliances, but Washington would likely see its influence decline compared with other economies.

Australia's military has already embarked on a 10-year modernisation, including large amphibious assault ships, missile destroyers, stealth fighter aircraft, cruise missiles, tanks and helicopters, as well as a bigger army.

CANBERRA,

Wednesday, Reuters