Australian Prime Minister Scott Morrison and South Korean President Moon Jae-in (Twitter: @ScottMorrisonMP)
MELBOURNE: South Korean President Moon Jae-in is the first foreign leader to visit Australia since the declaration of the global pandemic, an important signal of the tight and improving ties between the two states.
During his visit here on the 60th anniversary of diplomatic ties between the two countries, Moon also inked Australia’s first major defense contract with an Asian country, continuing push back on Chinese insinuations that Australia is racist and is not interested in close relations with Asian states.
“You have invited me as Australia’s first (leader to visit Canberra) since the COVID-19 outbreak and today our two countries have formed a close cooperative relationship,” Moon said Monday. “I think this will be a great gift for the people of two countries to celebrate the 60th anniversary of diplomatic ties…”
The two countries also used what appears to be a new tool among regional powers by declaring a “Comprehensive Strategic Partnership.” Australia did this with the ASEAN organization — upstaging a Chinese declaration of one by a day — and has declared them with four other Asian countries.
The biggest news for Australians was the $1 billion AUD ($700 million US) contract awarded to South Korean defense giant Hanwha to build 30 self-propelled howitzers and 15 armored ammunition resupply vehicles. The deal is expected to generate 300 jobs near the town of Geelong. As any observer of Australian arms deals knows, jobs are the gold standard for the value of any weapons deal.
This award may help South Korea in the much larger competition for Australia’s replacement for the M113 Armored Personnel Carriers, known as the Infantry Fighting Vehicle. Hanwha Defense Australia is competing against Rheinmetall Defence Australia for what is expected to be a $30 billion AUD contract to be announced next year.
In addition to the boosting of strategic and defense ties, Australia is expected to commit to supply South Korea with rare earth elements, key to the Asian economic powerhouse’s tech sector. Australia is the world’s second largest producer of these elements, according to GeoScience Australia, an official government agency.
