US to ship only second-hand nuclear submarines to Australia in revised defense deal

The two countries and their third partner in the security agreement, the UK, met at the Shangri-La Dialogue in Singapore, bringing together senior defense officials and experts from some 45 countries.

Under the 2021 AUKUS agreement, Australia is expected to receive at least three so-called “Virginia-class” nuclear-powered submarines from the United States within 15 years.

Australia had expected to receive two second-hand submarines and one new submarine, but both countries announced on Saturday that all three submarines will now be active in the U.S. Navy’s inventory.

Asked why Canberra is now only accepting second-hand equipment, Marrs, who is also deputy prime minister, told reporters on Sunday it would be more cost-effective.

“In a very complex job, we need to value simplicity,” Mallers said, adding that the submarine will also be the same model.

“I can’t overstate the importance of this, both for the submariners who operate these submarines and for those who work to maintain these submarines,” Mallers said.

“It’s absolutely cost-effective. To be clear, it’s a very expensive program … so we’re trying to look at every cost-effective option as we go down this path.”

In a joint statement on Saturday, Marlers, U.S. Defense Secretary Pete Heges and British Defense Secretary John Healey confirmed the changes to the submarine agreement.

“The Deputy Prime Minister and Ministers welcomed the proposed approach to streamlining Australia’s procurement of Virginia-class submarines, simplifying supply chain management, operations and maintenance requirements and maximizing cost efficiencies,” the statement said.

“This approach will enable Australia to have three active VCSs, rather than a mix of new and active VCS variants.”

The U.S. Navy has 24 Virginia-class ships, but U.S. shipyards are struggling to meet a production target of two new ships per year.

In the United States, critics question why Washington would sell nuclear-powered submarines to Australia without first stockpiling its own troops.

The AUKUS submarine program is the core of Australia’s defense strategy, and according to government forecasts, the cost may be as high as $235 billion over 30 years.

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