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Peace at any cost is a Prelude to War!

Australia and India Mend Ties

Summary

After two years, the governments of Australia and India have re-
established military ties, and the Australian prime minister, John
Howard, is visiting New Delhi. This warming in relations comes as
the Indian navy has begun to look east, to the Strait of Malacca
and the South China Sea. Rather than recoiling against a potential
competitor, Australia will likely focus its new relationship with
India on a common threat: China.

Analysis

Australian Prime Minister John Howard arrived in New Delhi on July
10 for a visit to repair relations with India. The diplomatic
fallout from India's 1998 nuclear test included the end of
military-to-military contacts between Canberra and New Delhi. But
the divisions are on the mend as India's increasing regional
ambitions are spurring Australia to turn a potential rival into a
potential ally in the Indian Ocean.

Howard's visit is intended to advance Australia's economic and
political relationship with India. The visit caps a period of
increased diplomatic contact, including a March meeting between
foreign ministers Jaswant Singh and Alexander Downer, which
ultimately resulted in the resumption of defense ties. The two
governments continue to hold different opinions on non-
proliferation, but the Australians appear willing to push the issue
to the side.
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Economic discussions will likely center on agriculture, investment
and information technology. Australia can supply India with cheap
grain and, more importantly, outside investment. Both nations can
likely profit from technology sharing agreements, and Australian
firms can take advantage of India's educated but inexpensive
workforce.

But the real issue here is strategic, the relationship between
India and Australia in an increasingly unstable Southeast Asia,
overshadowed by an expansive China. India is a rising power in the
region. Its navy is growing, and military leaders have declared an
"area of interest" that extends 7,000 miles, from the Arabian Sea
in the west to the South China Sea in the east. By definition, this
area includes part of Indonesia and the Strait of Malacca - areas
that are vital to Australian security.

Howard's government increasingly leans toward an active defense
policy, stopping problems before they reach Australian shores. This
policy would logically extend Australia's area of interest beyond
the horizon - and into potential conflict with India. In such a
situation, Canberra would find itself at a disadvantage. Australia
is having a difficult time finding the funds to pay for a weapons
modernization program.
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For more on Australia, see:
http://www.stratfor.com/asia/countries/australia/default.htm

For more on India, see:
http://www.stratfor.com/asia/countries/india/default.htm
__________________________________________________________________

But Australia and India have a common interest that precludes
rivalry; both are concerned about China. Relations between New
Delhi and Beijing are historically poor, and China still occupies a
section of Indian-claimed Kashmir. And India has increasingly made
it clear that it intends to challenge China's dominance in
Southeast Asia.

Australian military planners have long been concerned with the
potential naval threat posed by China. India can block the threat.
Engaging India gives Australia some ability to shape the way the
Indian navy moves into the region. By itself, Australia does not
have the wherewithal to police Southeast Asia, and the United
States can be a flighty partner. The minimal U.S. commitment to
peacekeeping in East Timor is an example.

The Australian government has before it not only the opportunity to
deflect a potential competitor. Even better, Australia can turn a
competitor into a witting, or unwitting, ally.



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