This Report contains the Joint Standing Committee on Treaties’ review of the following treaty actions:
the Framework Agreement between the Government of Australia and the Government of the French Republic concerning Cooperation on the Future Submarine Program (Adelaide, 20 December 2016); and
the Agreement between the Government of Australia and the Government of the French Republic regarding the Exchange and Reciprocal Protection of Classified Information (Paris, 7 December 2016).
Both proposed treaty actions were tabled in the Parliament on 7 February 2017. Although both are stand-alone treaty actions, they will work to support Australia’s Future Submarine Program (the FSP).
The Framework Agreement between the Government of Australia and the Government of the French Republic concerning Cooperation on the Future Submarine Program is not an agreement to design or build Australia’s Future Submarine. Rather, the proposed treaty action establishes a framework for cooperation to support the delivery of the FSP.
The treaty action provides for:
the transfer, ownership and use of technology and information;
asserting Australia’s sovereign operation and security of supply;
local industry engagement and cooperation;
research and technology development; and
governance and contract performance matters.
The Committee supports the proposed treaty action. However the Committee notes that it is only a first step in ensuring Australia’s national interests in the program are protected and maximised. In particular, the Committee recommends that the full lessons from previous defence capability acquisitions are learnt, including the importance of obtaining all intellectual property necessary for building and sustaining the Future Submarine. The Committee has requested a progress report from the Department of Defence in the 2018 Winter Sittings of Parliament in relation to intellectual property acquisition and management, and in relation to the arrangements that will maximise Australian industry involvement in the FSP.
The Agreement between the Government of Australia and the Government of the French Republic regarding the Exchange and Reciprocal Protection of Classified Information strengthens arrangements for sharing classified information between France and Australia.
The treaty action will supersede two previous agreements signed in 1985, and is more comprehensive and prescriptive than its predecessors. The key features of the agreement include:
requiring the protection of classified information exchange between Australia and France to a standard at least equivalent to the protection afforded domestically;
providing the mechanisms for the transfer of classified information;
mutually recognising security clearances issued by the other party; and
regulating the entry into classified contracts with contractors in the territory of the other party.
The Committee supports the proposed treaty action; however the Committee notes that this support is based on assurances made by the Government to the Committee. In particular, the Committee’s support for the treaty action is reliant on the assurances regarding the equivalency of classified information and the integrity of personnel security clearances issued by France.
The Committee is alarmed by reports of a leak of classified information by a trusted insider within DCNS, the contractor selected by the Australian Government to design and build Australia’s Future Submarine. The treaty action reviewed by the Committee provides for the transfer of Australian classified information to contractors, such as DCNS. The Committee notes concerns about Australia’s current vetting system, both delays in issuing clearances and the integrity of ongoing vetting of clearance holders. In addition to its relevance in relation to security and program management issues, this process has a bearing on the ability of Australian companies and workers to participate in the FSP. The Committee recommends that the government bring forward as a matter of urgency its work program to connect state and federal law enforcement with personnel security clearance systems.