AUKUS: Australia makes second nuclear submarine payment to the USA

Australia has made a further payment to the United States under the AUKUS nuclear submarine deal. Prime Minister Anthony Albanese confirmed on Wednesday that a second instalment of $525 million has been paid, following an initial $500 million payment in February.

The payment comes amid an ongoing formal review of the AUKUS pact, initiated by U.S. President Donald Trump in June, to assess whether the $368 billion (A$247 billion) agreement aligns with his “America First” policy agenda.

Rejecting suggestions that the transfer was unexpected or additional, Albanese stated: “This is not an extra payment. It is a scheduled payment we are making as part of the agreement. We have arrangements in place with both the USA and the United Kingdom, aimed at enhancing their industrial capacity.”

When asked about the transparency of the ongoing review process, Albanese declined to comment directly. 

“We have an agreement with the USA. The United Kingdom also has its own review under way.”

The AUKUS security alliance, formed in 2021, brings together the U.S., the UK, and Australia in a trilateral effort to develop nuclear-powered submarines for the Royal Australian Navy.

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