THE IISS SHANGRI-LA DIALOGUE - 17TH ASIA SECURITY SUMMIT

International Institute for Strategic Studies (IISS)           The 17th Shangri-La Dialogue

                             17TH ASIA SECURITY SUMMIT

                       THE IISS SHANGRI-LA DIALOGUE

                                    THIRD PLENARY SESSION

        SHAPING ASIA’S EVOLVING SECURITY ORDER

                                      SATURDAY 2 JUNE 2018

                                               MARISE PAYNE,

                     MINISTER FOR DEFENCE, AUSTRALIA

International Institute for Strategic Studies (IISS)                      The 17th Shangri-La Dialogue

Marise Payne, Minister for Defence, Australia
Thank you very much, John, and good afternoon, ladies and gentlemen, my ministerial colleagues –
particularly our host, Dr Ng; thank you very much, Eng Hen, for your hospitality here in Singapore –
the very many distinguished guests who are here today. It is my great pleasure to join a panel,
particularly with my friends, General Lich and General Ryamizard here today, to discuss ‘Shaping
Asia’s Evolving Security Order’. I appreciate both of their insights which they have shared with us
this morning and also remark upon the generous hospitality they have both always shown me when I
have visited their countries in recent times. Thank you very much.

Colleagues, nobody here needs to be reminded of the far-reaching strategic importance of the
Indo-Pacific region. We see how our region continues to drive the world economy. Over the past
decade alone it has contributed two-thirds of global growth and now accounts for 44% of global GDP
and rising. That economic drive sees re-emerging and rising powers in the region rapidly expanding
their influence and intensifying competition. How the United States and China resolve differences
over trade, how and when denuclearisation of the Korean Peninsula is achieved, how we foster
behaviour consistent with the rules-based global order and how territorial disputes in the region are
resolved, are all challenges that are actually global in scope. Added to this, as Minister Ryamizard has
just reminded us particularly, the terrorist threat continues to challenge Southeast Asia, as recent
events in Surabaya and earlier events in Marawi have tragically reminded us. Nobody wants to see
Daesh take root in our region after being denied territory and legitimacy in the Middle East.

By way of framing my remarks today let me suggest four overarching considerations for our
deliberation. Firstly we should continually remind ourselves that half a century of stability came
about not by chance, but by design, by negotiation and by persistence. For now we all enjoy the
benefits, and perhaps those who benefited most were those nations whose growing economies were
protected from coercive practices and were able to trade freely within a framework of
self-determination and known rules that were globally reinforced. More generally a key role in
establishing norms of behaviour was indeed played by ASEAN.

The principles in the Treaty of Amity and Cooperation to which Australia acceded in 2005 continue to
resonate, namely mutual respect, freedom from external interference, non-interference, peaceful
settlement of disputes, renunciation of force and effective cooperation. These are principles to which
Australia, as ASEAN’s first dialogue partner, is fully committed and which we reaffirmed at the
ASEAN–Australia Special Summit hosted in Sydney this year. They are the principles by which
Australia guides our interaction with our regional friends. More does need to be done to entrench
these principles, not just as habits of cooperation but as durable rules and norms with structures for
enforcing them.

In making these observations I acknowledge the crucial role played by more than 70 years of United
States engagement in the region. This has been instrumental in putting the region on the path of
security and sustainable economic growth. The peace, the security generated by the engagement of
the United States in the region has paid dividends. The US has championed open trade and

International Institute for Strategic Studies (IISS)                       The 17th Shangri-La Dialogue

investment relationships, strengthened national sovereignty and engendered the stability needed for
the region’s rapid economic process. I welcome the remarks by Secretary of Defense Mattis this
morning reinforcing the message that from Jefferson to today the United States’ commitment is strong
and in 2018 their commitment to building shared destiny in the region. It is in all our interests that the
US remains actively engaged in the region to ensure that peace, security and stability continues to
benefit all. We also acknowledge that a prosperous China constructively engaged in global affairs is a
good thing. It is not possible to address global challenges such as North Korea or climate change
without China’s involvement.

The second important consideration is that strategic competition has to be bound by principles and
rules. The most recent positive example from Australia’s perspective of how this approach can
function positively and effectively is the Maritime Boundary Treaty signed between Australia and
Timor-Leste in March. This treaty was negotiated through the first-ever conciliation held under the
auspices of the UN Convention on the Law of the Sea (UNCLOS). The treaty is a testament to the way
in which international law, in particular in this case the UNCLOS, reinforces stability, allows
countries to engage and resolve disputes peacefully without coercion and by the rules. It is a good
example of the rules-based global order in action.

The third consideration I would suggest is a vital lesson in history. Disruptive changes in
international relations when imposed on others create instability. Changes to the rules-based order
must evolve through open discussion and be agreed as broadly as possible if those changes are to
support the continuation of development and growth. Adopting a ‘might is right’ approach is
contrary to the interests of all nations. Rules that have served us so well for so long and from which
we have all benefited should not be carelessly discarded. However, it does not mean that they cannot
evolve and adapt. Indeed they must. The guiding principle for any process of change must be that
one country cannot author rules for others.

Recasting of the rules needs to be a transparent and collective effort, open to international scrutiny,
especially but not only if it affects the global commons. Nations must also have the right to be free
from coercion or criticism when they lawfully and reasonably communicate concerns about the
behaviour of others. This extends to the reasonable expectation that rules, not the exercise of power,
govern our actions. For example, Australia’s position on South China Sea territorial disputes is well
known and well established. Australia encourages all countries to clarify and resolve their territorial
claims in the South China Sea based on international law.

We welcomed the movement by ASEAN states and China towards a Code of Conduct for the South
China Sea. I noted General Lich’s observations in relation to that in his remarks. When Australia
disagrees with the actions of another nation, including our partners and our allies, we say so. For
instance, Australia continued the Trans-Pacific Partnership (TPP) project with like-minded nations,
including many who are here today, to successfully bring the TPP to life despite the pessimism of
some and in that case the very different view of the United States.

International Institute for Strategic Studies (IISS)                        The 17th Shangri-La Dialogue

Finally, the fourth consideration: I would suggest that we benefit most from a regional order where
the rights of all sovereign nations are protected and encouraged. As a nation Australia is prepared to
address threats as they arise, especially those that challenge the fabric of our regional stability and
security, such as terrorism and such as North Korea’s illegal ballistic and nuclear-weapons
programme. In that context Australia has recently deployed a P-8 Poseidon maritime-surveillance
aircraft to support the international community’s enforcement of the UN Security Council’s sanctions
against North Korea. In some instances this will also mean a very practical commitment to security
engagement at the request of another government in the region. We saw this in relation to
contributions made by Australia and others to helping the government of the Philippines after the
attacks made on the city of Marawi by terrorists. The successful efforts by the Philippines to defeat
terrorists in Marawi adds to our collective regional security. We have to work towards closer
cooperation on counter-terrorism measures.

Indeed, in terms of endeavouring to further enhance cooperation in this area, in February this year,
just four months ago, I hosted an inaugural subregional meeting of a number of defence counterparts
and representatives from six Southeast Asian countries in Perth to share lessons from a number of
things: to share lessons from coalition operations in the Middle East against Daesh; to hear from the
Philippines particularly about their experience in Marawi; and then to work to devise strategies
together for enhancing cooperation in the area to safeguard against transnational terrorism taking
root in Southeast Asia. My fellow panellist, Minister Ryamizard, attended the Perth meeting and I am
pleased that he has agreed to host the next meeting in Indonesia in 2019. I particularly note his
message to us all today about the threat of returning foreign fighters to our region. It is real and it is
timely. Defence forces in and of themselves indeed cannot of course defeat terrorism, but they can
work to defeat terrorists. They have a vital role to play in supporting the whole-of-government
responses and efforts to root out terrorism.

Ladies and gentlemen, in the broad context of this discussion today in terms of shaping Asia’s
evolving security order, I also want to note that Australia is a strong supporter of the United Nations
Security Council Resolution 1325, the Women, Peace and Security Agenda. We continue to work with
our regional partners to strengthen women’s military participation in conflict prevention and
resolution. We also know that women and children are disproportionately affected by conflict. We
also know that increasing women’s representation in peace and security processes increases the
likelihood of long-term success.

More broadly, Australia’s approach to the Indo-Pacific also involves engaging with nations small and
large, both bilaterally and in smaller groupings, to strengthen the cohesion of nations that share our
vision for the region. Our trilateral strategic dialogue with the United States and Japan is well
established. We are also always open to new opportunities to work with other close partners. We
continue to recognise and welcome ASEAN’s central role in providing regional leadership. I also note
Prime Minister Modi’s commitment last night in an excellent speech of India’s readiness to support a
free and fair Indo-Pacific. At a time of unprecedented geostrategic, economic and technological

International Institute for Strategic Studies (IISS)                       The 17th Shangri-La Dialogue

change, active, engaged leadership is vital. As the Prime Minister of Australia said here last year, this
is about us choosing the region we want. We should not be settling for a future imposed on us.

Our Australian 2017 foreign-policy white paper is another investment by the Australian government
in enhancing regional transparency. It reaffirms the assessments and the broad objectives of the
Australian 2016 defence white paper which remains for us the blueprint for our national-defence
policy settings. Both those white papers leave no room for doubt as to the commitment that Australia
makes, and indeed will continue to make, to shape a security order in the Indo-Pacific region that will
benefit all. I think the most important commitment that we here can all make at the end of this
conference is to respect the rules-based global order that has served us and our prosperity so well in
the past, and to recognise that its preservation depends on our determination and our perseverance to
see that it continues. I thank you all very much for the opportunity to make some remarks this
morning, and John, I look forward very much to our discussion.