FEATURE: Tough times tipped to fuel Asian tension

While stunt aircraft turned loops in the sky and parachutists enthralled the general public, this week's international airshow in Melbourne was very much about Australia's role in providing military technology to Asia.

Bruce Hill

Last Updated: Fri, 13 Mar 2009 18:34:00 +1100

The Australian International Airshow and Aerospace & Defence Exposition is one of the most significant in Asia-Pacific, attracting business delegations looking to make multi-million dollar deals with countries from across a region where tensions are growing.

The expo is a hub of high-tech aircraft, from the US F-16 Falcon through to gigantic C-5 Galaxy transports and the Russian-made Mig-26 which can just about stand on its tail in mid-air. And where else would you find video advertisements for an "integrated ship borne air defence system"?

Kym Bergmann, the editor of Asia Pacific Defence Reporter magazine, says Asia is already experiencing an arms race, and China's growing economy will only foster political tensions, particularly in North Asia.

This, he says, make it even more important that Australia maintains its strong defence presence.

"It's a necessary insurance policy," he says.

"It's very difficult to predict what's going to happen in international affairs in two years' time, let alone five years' time or ten years' time."

And growing hostilities also bode well for Australia's defence industries, even if it means exporting weapons which could potentially return in anger one day.

"We sell equipment in the hope that other countries will use it for its deterrent effect," he says.

That's a view shared by the United States' Air Force's deputy under secretary for international affairs, Bruce Lemkin.

"If it's done in the right way, it is inherently stabilising," he says, noting how the arms build-up is being used to bring security to a region battling terrorism, piracy and the sale of weapons technology.

Mark Dougan, the managing director of aerospace consulting company Frost and Sullivan, says Australian companies are at the "leading edge of defence technology", and it's particularly important they continue to export during the global economic downturn.

He also says it is one of the few areas that will do well in the current economic climate, with tough times likely to fuel ongoing tensions.

"At the moment, it's one of the few markets providing some growth opportunities for Australian companies, and perhaps for that very reason we shouldn't sniff at it.," he says.

"It's a real job creator, and that's the reason politicians are so interested in promoting the defence industry in their particular jurisdictions."

Pacific nervousness

Despite the increasingly complex military situation in Asia, Kym Bergmann says Pacific nations are likely to remain calm.

But he says there is a "slight degree of nervousness" under the surface in diplomatic and defence circles.

"China is a good example of a nation which appears to be trying to extend its diplomatic presence in this area, and the governments of Australia and New Zealand in particular are watching that with a degree of interest.

"If, for example, China was to start seeking to base naval ships in this part of the world ... that would be a cause of concern [based around] what the motivation might be."

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