A greatly expanded program of joint military exercises was also foreshadowed in the Sydney Statement. These exercises are significant because the United States does not maintain combat troops in Australia. "Tandem Thrust", the largest combined and joint exercise held in Australia in twenty years, took place in March 1997.2
Australia was the only regional country willing openly to criticize China during the 1995-6 Taiwan straits crisis. At that time, Australia's defence minister warned China that its minatory behaviour might incur consequences. In the February 1998 crisis with Iraq, Australia dispatched SAS forces, and it endorsed the December 1998 US/UK punitive strikes against Saddam Hussein's regime.
But in terms of defence spending and force structure, Australia must work harder to remain credible as an ally. It is seeking defence on the cheap, spending having fallen to 2% of GNP. Australia must also develop a maritime strategy appropriate to its strategic needs. Although some welcome improvements in maritime capability have been made, the Australian army remains tied to continental defense and lacks amphibious capability. The army, which has always had a continental orientation, is thus prevented from projecting its forces much beyond the continent. That undermines Australia's credibility as a contributor to alliance burden-sharing.
Archipelagic links
Australia's other forces do have considerable power projection capabilities. Australia is the only country, apart from the United States, able to project power into Southeast Asia from a distance. Strike elements include the six new Collins class submarines and the F111 strike aircraft. Australia also possesses sophisticated military technology compatible with that of the United States, and is one of the few countries in the region capable of participating in the Revolution in Military Affairs (RMA).
Australia's alliance with the United States makes it a more valuable security partner for the Southeast Asians, including Singapore, which trains much of its air force in Australia. Australia's long-standing defense links with Singapore and Malaysia continue under the rubric of the Five Power Defense Arrangements (FPDA). FPDA's most important component is the Integrated Air Defense System (IADS), commanded by a senior Australian air force officer.