Exchange of Naval Nuclear Propulsion Information Agreement

Baroness Goldie Excerpts

Monday 17th January 2022 Grand Committee

[The Minister of State, Ministry of Defence (Baroness Goldie) (Con)]

My Lords, I first thank the noble Baroness, Lady Hayter, and her committee for their report and for calling this debate. I also thank all noble Lords for their genuinely interesting and very well-informed contributions.

Let me just reprise the salient features of the AUKUS information-sharing agreement. I am very grateful to the noble Baroness, Lady Hayter, who referred to it as being an agreement of strategic significance. My noble friend Lord Lansley made positive comments about the process and the agreement itself and the noble Lord, Lord Hannay, offered a very insightful and reflective commentary. This agreement is based on existing information-sharing practices in place between the United Kingdom and the United States. It will remain in force for only a limited period, and it is necessary in order to enable this key piece of work on submarine nuclear propulsion to move forward.

It is a binding international agreement in law. The noble Lord, Lord Bilimoria, raised the important question of what happens if there is a change of Government. None of us has the capacity to predict or control what properly elected Governments in other states do, but this is a binding international agreement. I think that everyone understands the significance and strategic importance of this agreement to Australia, and I therefore very much hope that the arrangement is secure. If there is a change of Administration in any of the three countries—I do not anticipate that happening in this country; let me make that clear—I would hope that the binding legal dimensions of this agreement would obtain.

In so far as the procedure within the United Kingdom is concerned, we laid the agreement before Parliament in November 2021 for scrutiny in the usual way, and I thank the committee for its role in that process. I thought that the noble Lord, Lord Tunnicliffe, was rather disparaging about the agreement. He thinks it is fragile. With respect, I disagree: I think it is robust and focused. There is very detailed work under the agreement now proceeding. He was unduly pessimistic in saying that he is certain it will go wrong. I disagree. I have every confidence, with the structures in place, that this is an important piece of work, not just for our international interests but also for our domestic interests. It is an exciting prospect, and I do not share his pessimism.

I thank the committee for its scrutiny of the agreement and for the report that it has produced. My noble friend Lady McIntosh asked when we expect it to be ratified, and the answer is by the end of January. For future agreements, the Government would of course comply with any applicable requirements of the Constitutional Reform and Governance Act 2010. The committee drew specific attention to amendments and whether they would be subject to parliamentary scrutiny. Understandably, a number of your Lordships raised this issue and sought clarification. As I have said, the agreement is based on existing information-sharing practices in place between the United Kingdom and the United States, and it will remain in force only for a limited period, enabling the initial programme of work. In these circumstances, the Government consider it unlikely that it will need to be amended during its time in force.

The terms of a binding international agreement, including those on the method of consent to be bound—for example, ratification—are subject to negotiation on a case-by-case basis with international partners. The noble Baronesses, Lady Hayter and Lady Smith, focused particularly on this point, as did my noble friend Lord Lansley. The nature of what happens in the course of the discharge of the functions under the agreement dictates, to some extent, how these matters are approached. Certainly, they would have to be approached with trilateral agreement, and we cannot anticipate what might arise that would need adjustment. We cannot anticipate whether they would raise, for example, issues of commercial confidentiality or national security. The same applies to the nature and form of any follow-on agreement, but I make clear to the Committee that the Government have previously indicated their intention that the majority of important treaty amendments be subject to ratification and submitted to Parliament for scrutiny in accordance with CRaG. I hope that provides an appropriate level of reassurance to Members of the Committee.

[Lord Lansley (Con)]

Is it reasonable to infer, from what my noble friend has said, that if a follow-on agreement is subject to examination by the treaties committee in the Australian Parliament, it will also be subject to scrutiny through CRaG in this Parliament?

[Baroness Goldie (Con)]

I wish to reassure my noble friend and the Committee that the spirit and intention of the Government is that scrutiny is important; it is at the heart of what they wish to see Parliament do, and it would be exceptional if scrutiny were denied. I hope that reassures my noble friend to some extent.

Moving on to the substance of AUKUS itself, it is a security and defence partnership between three like-minded, democratic allies to enhance security and stability in the Indo-Pacific region and globally. AUKUS is not a new treaty, it is not a mutual defence agreement, and it does not replace nor cut across other alliances, such as NATO or Five Eyes; it complements them and supports their aims.

As your Lordships will be aware, the main effort under AUKUS is the delivery of a nuclear-powered submarine capability to Australia. In September last year, an 18-month programme of work commenced to understand how we can best achieve this goal. I want to be clear that Australia asked for our help in acquiring a nuclear-powered submarine; we are meeting the request of a close partner with whom we have a long history of co-operation, including on submarines. Indeed, the noble Lord, Lord Bilimoria, spoke with authority on our long-standing United Kingdom/Australia relationship.

Our work to deliver this capability for Australia reflects the unique level of trust and co-operation between our three countries, and we can rightly be proud of that. This will help Australia to fulfil its defence and security responsibilities and to promote stability and security in the region, which this Government strongly support. As your Lordships will be aware, we have built and operated a world-class nuclear-powered submarine capability for more than 60 years. We bring deep expertise and experience to this partnership, as indeed do our American allies. AUKUS showcases the UK’s competitive and innovative defence industry and our role as a global leader in science and technology.

I emphasise, because a number of your Lordships alluded to this, that the programme of work will be fully in line with our international obligations. Australia has impeccable non-proliferation credentials, and it does not, and will not, seek nuclear weapons. It is important to reiterate that the proposed submarines will use a nuclear reactor uniquely as a power source. All three partners take their obligations under the nuclear non-proliferation treaty extremely seriously and have been in regular close contact with the International Atomic Energy Agency as this agreement moves forward into the next stage.

Let me try to deal with some specific points that arose during the debate. My noble friend Lord Lansley raised the Japan-Australia Reciprocal Access Agreement. We enjoy a close and growing bilateral security relationship with Japan. AUKUS does not replace or reduce the importance of any other strands of our relationship with Japan. Instead, through AUKUS, we intend to deepen, not limit, co-operation in the Indo-Pacific region. The Japan-Australia Reciprocal Access Agreement is for these Governments to comment on, but is a sign of their developing strategic partnership.

The noble Baronesses, Lady Liddell and Lady Smith, raised the transfer of intellectual property. The agreement provides protection for the originating parties under Article VIII. As part of the ongoing programme of work, we will further consider how to deal with the exchange of intellectual property.

The noble Baronesses, Lady Hayter and Lady Smith, the noble Lord, Lord Hannay, and my noble friend Lady McIntosh raised the important issue of international relations, not least with France, Europe and China. We fully recognise the French disappointment. We are keen to move forward and are keeping channels of communication open. As the Prime Minister said to President Macron, we are committed to the United Kingdom-France relationship and we believe in the powerful role we can play together.

France is an important partner to the United Kingdom. We have a long-standing security and defence relationship with France that is underpinned by the Lancaster House treaties and by us being close NATO allies. We continue to consult each other daily on international defence and security matters, and that defence relationship remains strong. As was recently illustrated, our close collaboration on Afghanistan and our military deployments in the Sahel to tackle terrorism indicate that we are working together and consulting each other, just as we are working together to tackle global challenges such as climate change.

The noble Baroness, Lady Hayter, and the noble Lord, Lord Hannay, focused particularly on China. I make clear that AUKUS is not aimed at a specific country; it is about supporting our allies and promoting stability in the Indo-Pacific region. AUKUS will work to protect our people and support a peaceful and rules-based international order. It is about the long-standing and deepening defence and security relationship between the United Kingdom, Australia and the United States.

The noble Baronesses, Lady Hayter, Lady Liddell and Lady Smith, and the noble Lord, Lord Bilimoria, specifically raised Five Eyes. That remains a unique and highly valued partnership. We have been sharing intelligence to address global threats and support international security and stability for over 60 years. We noted that Prime Minister Ardern of New Zealand welcomed the increased engagement of the United Kingdom and United States in the region. We compare notes and work together as five like-minded countries on a range of issues and in a variety of formats. Of course, each of us also has its independent foreign policy and works with different partners and in different groupings, according to context and need.

My noble friend Lady McIntosh asked about devolution. In this context, defence and foreign affairs are matters reserved for the Westminster Government, so there is no specific devolved locus on this matter. When the MoD receives inquiries from representatives of constituencies in the devolved nations or from the devolved Governments, we respond and always do our best to co-operate and be helpful.

The noble Lord, Lord Hannay, particularly raised the nuclear aspect to this and the responsibilities of the United Kingdom, United States and Australia. I give the reassurance that we want to reinforce the global non-proliferation architecture and set a precedent for the future that retains confidence in the fulfilment of our NPT obligations. We regularly update the International Atomic Energy Agency and are fully engaging with it throughout the 18-month feasibility study. We will continue to be transparent and consultative, especially on issues regarding nuclear materials, facilities and activities relevant to the IAEA.

The noble Lords, Lord Hannay and Lord Bilimoria, were interested in the inherent character of this new security partnership. That is what it is. I think they were seeking clarification and reassurance. This is a partnership focused on joint capability development and technology sharing. It reflects the unique level of trust and co-operation between the UK, the United States and Australia. It is about nuclear propulsion, not nuclear weapons and, very specifically, it does not include any obligation to consider an attack upon one as an attack against all participating states. That is not the character of this agreement.

The noble Lord, Lord West, sought detail about specific representation on various groups within the UK, the United States and Australia. I do not have specific information to that level, but I shall investigate, and if I am able to share information with him, I shall do so.

[Lord West of Spithead (Lab)]

My other question relates to the fact that the Americans have nominated a very high-ranking person to drive this programme. It seems that we are allowing our National Security Adviser, who is responsible for all sorts of things, to do it. As we know, because of the sheer complexity of this and the impact it might have on our CASD, our nuclear programme and all the other things, having one person to whom we can say, “Right, this is your job. You’re responsible to the National Security Adviser and the Prime Minister, and if it goes wrong, it’s your head that gets chopped off” is the sort of thing we need rather than leaving it quite so loose. Are we going to do that?

[Baroness Goldie (Con)]

I am grateful to the noble Lord for expanding on that. As I said, I do not have specific information and I would not want to mislead him by giving him some general position that may be completely inadequate. I undertake to go back, inquire and share with the noble Lord whatever information it is possible for me to disclose.

The noble and gallant Lords, Lord Houghton and Lord Boyce, raised legitimate and understandable concerns about how all this impacts on our nuclear submarine-building programme and whether it puts any of it in jeopardy. In relation to Dreadnought, I want to make it clear that the programme remains on track to deliver to schedule and within the original budget as provided for in the strategic defence and security review in 2015. The noble Baroness, Lady Smith, asked about the overall budget situation. I gently remind her that the defence budget settlement which we saw last year is one of the most generous that we have seen in generations. That has been recognised widely and within the defence community.

In relation to Astute submarines, which, again, the noble and gallant Lords, Lord Houghton and Lord Boyce, were interested in, my understanding is that they are making good progress and that they are all committed to be delivered by 2026.

The noble and gallant Lord, Lord Boyce, also raised the 1958 agreement regarding nuclear weapons. He also mentioned other historical agreements which focused on nuclear weapons. I remind the Committee that AUKUS is commencing a programme of work to identify ways to deliver a nuclear-powered but not armed submarine capability to the Royal Australian Navy. That is a gentle reminder that we are dealing with matters of nuclear propulsion under this agreement.

The noble Baroness, Lady Liddell, wished to understand how all this relates to the Five Eyes defence alliance. Let me reassure her that that is first and foremost a highly valued intelligence-sharing partnership. Over the years, it has grown beyond intelligence sharing to respond to changing threats and challenges. AUKUS is an enhanced trilateral security partnership with a specific remit. Both as individual Five Eyes nations and as a group, we will continue to work with other like-minded allies, forming the right alliances to better face specific common challenges.

The noble Baroness was also interested in how AUKUS contributes to the United Kingdom’s Indo-Pacific strategy—forgive me for sounding hoarse; as far as I am aware, I have nothing infectious, and I tested this morning before coming to mix with you all.

[Lord West of Spithead (Lab)]

A likely tale.

[Baroness Goldie (Con)]

It would have been difficult for the noble Lord to corroborate it; I was doing it in the privacy of my bedroom.

AUKUS is a concrete demonstration of the commitment made by the UK in the integrated review to deepen co-operation, partnerships and engagement in the Indo-Pacific. We are committed to deepening relationships with countries in that region. By 2030, the region will represent more than 40% of global GDP, so the announcement is a clear demonstration of both our interest in and commitment to that area.

The noble Baroness, Lady Smith, said, “Well, this is all fine and well, and we understand what it means for the Indo-Pacific area, but what about everything else in defence?” I say to her that if we take in conjunction the integrated review and the recent defence Command Paper, not to mention the recent Future Soldier paper which was the subject of a Statement in the Chamber, we see in all of those, detailed information on how we meet threat, wherever that is coming from, whether it is directed at us within the UK or at our partners and allies. We have a clear plan as to how we think we should meet that, and it is a plan that will endure in the forthcoming decades.

This is an important agreement for Australia, the United States and the United Kingdom, as it is for the wider issues of stability in the region. The noble Lord, Lord West, commented both shrewdly and authoritatively on those issues. The agreement certainly reflects the importance we attach to the area in terms of the integrated review—that was also recognised by my noble friend Lord Lansley.

[Lord Bilimoria (CB)]

I earlier listed the countries that make up the Quad and said India, Australia, Japan and—by mistake—the UK. Of course, it is the US; the noble Lord, Lord Lansley pointed that out to me.

I cannot resist a serendipitous opportunity. The noble Baroness, Lady McIntosh, asked me why the UK is not a member of the Quad. With the integrated review and our tilt to the Indo-Pacific, perhaps there is an opportunity for the UK to join the Quad in the future.

--- Later in debate ---

[Baroness Goldie (Con)]

We always keep a vigilant eye on wherever we can find friends and partners. As I have already indicated, we also find different ways of working with them.

AUKUS is not uncontested. As an emerging new partnership, it is open to being misunderstood. All three AUKUS partners are therefore committed to engaging positively and collaboratively with international partners on the regional and global benefits of AUKUS while pushing back on disinformation about arms races and nuclear proliferation.

In addition, we have committed trilaterally under the auspices of AUKUS to enhancing the development of joint capabilities and technology-sharing beyond the nuclear propulsion that we have discussed today. Our initial area of focus for this effort is cyber capabilities, artificial intelligence, quantum computing and additional undersea capabilities. We have agreed to broaden this into other areas as our partnership develops.

The UK will use this element of AUKUS as a platform to leverage its world-leading science and technology sector, working with trilateral partners to identify and exploit opportunities for us to develop new defence capabilities from which we can all benefit. We will foster deeper integration of security and defence-related science, technology, industrial bases and supply chains. In conclusion, this is a significant partnership and a positive development for the United Kingdom, as it is for Australia, the United States and the broader region.

[Lord Boyce (CB)]

Thank you for allowing me to intervene. Can I return to the Nassau agreement for a moment? I am aware that we are talking about not nuclear weapons but nuclear propulsion, but I quote the Explanatory Memorandum:

“The US-UK Agreement for Co-operation on the Uses of Atomic Energy for Mutual Defense Purposes of 1958 … also prevents the UK and US from disclosing restricted naval nuclear propulsion information to other countries unless specifically authorised.”


We fell foul of that with the Canadians in 1987; that is what I am talking about. It is not about nuclear weapons, but nuclear propulsion, which the Explanatory Memorandum itself admits. As I say, the agreement does not mention this per se. I come back to the point of my original speech: should we have some sort of codicil or amendment to the 1958 agreement to make sure that we do not fall foul of it in this transfer of nuclear propulsion information to Australia?

[Baroness Goldie (Con)]

I am grateful to the noble and gallant Lord for that clarification; I apologise for misunderstanding his question. I shall need to look at that in detail and revert to him with such information as I am able to find.

In conclusion, I thank the noble Baroness, Lady Hayter, and her committee. I also thank your Lordships for a stimulating debate.