Security u. S. National security and investment in submarine production and maintenance. This is held by the Senate ForeignRelations Committee. [inaudible conversations] [inaudible conversations] this hearing of the Senate ForeignRelations Committee will come to order. In march, President Biden stood alongside the leaders of the United Kingdom and australia to announce the agreement. A generational opportunity that will enhance u. S. National security interest by interests y transforming our alliances. Toot deterring aggression from the peoples republic of china fostering a more peaceful and stable indoic pacific. Beijing today has the Worlds Largest navy. Xi jinping hyper nationalist government has been laying claim to territory in international waters. They have built artificial buils for new operating basis with runways for military aircraft and ballistic missiles. At the same time they are aggressively trying to influence australia politics and civil society. Buying Critical Infrastructure like port facilities in darwin, making political donations, even hacking australian parliaments parliamentand Major Political p. A critical moment which unites he seems to show we are serious about our commitment to at free and open end of pacifi. Congress is a vital role to play in cementing this longterm vision and time is of the essence. Unfortunately the codification has not gone as smoothly as some of us would have hoped. Senator risch and i worked incredibly hard to codify the two central pillars and i want to acknowledge senator keynes engagement on that initiative as well. Pillar one include selling u. S. Virginia Class Nuclear powered submarines to australia making themsu the only other country other than the United Kingdom that we share this technology with. Training australian to crew and produce such as submarines and significant financial contributions from australia to expand our own submarine production capabilities. We offer legislation with all of these elements that we moved to the Senate ForeignRelations Committee with strong bipartisan support. I want to think senate wrist for his partnership in helping us to advance pillar one. However it did not make it into the senates version of the National Defense authorization act. In addition to the french are submarine industries some of our colleagues in the senate expressed concern about the primary purpose of office, the submarine transfers and support. If we fail to move forward with full congressional support including that Nuclear Powered submarines, we are doing beijings job for them. China is against as it is complicates their across the in the pacific. With Nuclear Power these thesubmarines can travel long distances underwater and undetected. This will give us to read the ability to protect security interest from thousands of miles away. We will be able to cruise submarines together that operate directly out of naval bases in australia. Further enhancing our already deep bilateral relationship. And enhancing our reach into the region. Congress needs a place part at ofthe agreement is going to wor. We need to send the message the United States can be relied upon. Australian all the partners in the region are watching. President xi is watching. Thousands of americans employed in our shipyards would build these as submarines and would benefit from the austrian contributions to support and expand our submarine infrastructure are watching as well. So i hope our witnesses will help us understand why both the pillars will improve the National Security interests of the United States, australia and the United Kingdom. Based on Mission Requirements set by the name of the United States and australia need these submarines faster than they are currently being produced. I think will be helpful if you could clarify exactly how the department of defense plans to increase american sub production. How we go from a glum point for subsidy zero to three subs a year . A secretary hope you can shed some light on the perspective. What will this deal up meeting with our alliance for australia in what is the cost of inaction . Finally secretary at lewis, how will you ensures we codevelop advanced military technologies with australia or products will be safe from chinese espionage. Will this require changes to all parties export controls to protect u. S. Military technology . As wilson military technology we developed together through thisy new partnership . Imug supportive of pillar two f the agreement the Co Development of advanced military technology which will require streamlining strengthening export controls among the partners. But i do not want to be used by some as a trojan horse to undermine u. S. Export controls for the sake off commercial, industrial interests that are unrelated to the partnership. It should be about modernizing our historical alliances with two of our closest partners who fought alongside the united ststates in defense of democracy and free with that when we turn to Ranking Member for his opening statement. Thank you very much mr. Chairman. And certainly want to associate myself with remarks you made both of us recognize how important it is. We are anxious to see it move forward. Im certainly there have been disappointment so far. But that does not mean we cant do better in the future. And that is the purpose of this hearing to try to get this thing on track and move it more quickly and more efficiently. As the United States enters into a period of strategic rivalry with china and it includes military competition on a scale we have not seen in generations. China has undertaken the nucleat breakout in fields the Worlds Largest navy in a fully modernized air force free to meet this challenge we must move quickly to expand the reliance the resilience and capacity of our Defense Industrial base u. S. Allies should be full partners in this effort and the partnership is an important first step. The defense trade partnership between australia, theth uk and the u. S. Is meant to bolster collaboration on joint advanced military capabilities. In particular our goals include increased Technology Sharing an expedited export licensingsi processing. Only one focus on acquisition of conventionally Armed Nuclear submarines assist bowls and essential its also highly contingent upon supply and unlikely to produce increased submarine capability in the end of pacific for a decade. Important many of the capabilities needed to fully implementmp pillar one including cruise missiles the combat system or advanced computing capabilities will heavily be dependent uponpe pillar two. If executed as intended pillar two offers the potential to produce meaningful results and can expand and build resilience across the supply chain of industrial basis and imperative given the lingering impact of covid and u. S. Limitations exposed by russias invasion of ukraine but however export control system remains overly cumbersome and treats our closest allies with proven track records of Technology Protection as if they were new or emerging partners simply put australia in the United Kingdom have legal regulatory and Technology Control regimes that are comparable to those of the United States demands of the administration australian take reform of their domestic political regulatory system are frankly condescending. It had seating for clear shift in the states attitude toward defense cooperation with its allies. I fully appreciate what we do not want to open the door as the chairman said to using this as a trojan horse to do some things we dont want to do. I have served on this committee for 15 years now that ive been in the senate. Ive also at the same time served on the intelligenceve committee. I would like to report to this committee one of the very first things i noticed between the two committees is there is a very distinct difference between the way we treat allies in the intelligence field versus how we treat them on other things like export. I thinknk it would probably behoove state and the department of defense to spend a little bit of time with the intelligence community. We share incredible, incredible sensitive and importance material but the five eyes. And so here i do not have the concerns that some have. As far as the chairman is concerned on usingng this trojan horse it is a legitimate concern it certainly deserves attention. But having said that there may be an overreach a there. I think we really ought to take a deep breath. Sit down and review how we can reconcile how we treat ourur allies in the intelligence field. And make it more compatible with how we treat them in trade and in industrial matters. The department of state in concert with the department of defense and commerce and other relevant agencies to clearly communicate to her Office Partners our requirements to ensure robust technology, security expert control measures and then adhere to them. In addition the agency should work to reduce barriers to defense, innovation, cooperation, production and sustained with the government and Industry Partners of the kingdom and australia if it realizes its potential it will set a precedent incentivize similar agreements with other close u. S. Allies. We need to gethi this right befe we at other partners. But these agreements are necessary if we are to prevail in the long term competition with china, russia and their partners if it fails to achieve its goals would not only shows to be an unreliable ally but would also signal we are fundamentally not serious about competing. Thank you sander risch. Lets turn to our witnesses its my privilege to welcome back to the Committee Assistant secretary for the bureau of Political Military Affairs jessica lewis. Prior to assuming her role as assistant secretary she served here on the committee as a democratic staff director for five years. Those were the most glorious years of her career at. [laughter] from 2007 until 2014 assistant secretary lewis was a National Security advisor and Foreign Policy advisor and senior National Security advisor to Senate Majority and minority leader harry reid. We also welcome assistant secretary of defense for strategy plans and capabilities. Who is currentlyie performing te duties of the deputy under secretary of defense for policy. Doctor carlin is working for six secretary of defense. Strategic planning defense policy budgeting future conflicts and Regional Security fishes previously perform the duties of deputy under secretary for policy from august of 2021 to february 2022 and prior to that serve as acting assistant for interNational Security affairs. Last were pleased to welcome has been serving as the Principal Deputy assistant for the bureau of east asian and Pacific Affairs since june the 15th of 2021. In the form service for 29 years has diplomatic stops in taipei beijing and soap. Prior to this role he was the acting assistant secretary of state and the bureau of intelligence. Welcome to all. Want to thank the witnesses for their participation in todays hearing for their service to our country. Your full statement to be included in the record without objection ask you summarize them in about five minutes or so so they can have a conversation with you for that will start off with you secretary lewis. Thank you so much mr. Chairman for the kind introduction. Ranking member and honorable members of the committee. I want to thank you for the opportunity to testify today but enjoyed by my colleagues and i am excited to talk to you about the role of the state department. One of this administration hallmark National Security and Foreign Policy initiatives. I want to start first by thanking both the chairman and the Ranking Member and the entire committee for your leadership role in making it possible. Through your support passed by this committee and the state authorization act much was included in the National Defense authorization act passed by the full senate in july. Want to start giving an overview then discuss legislation in the interim plan we are also putting in place. One month ago i was with secretary blinken and secretary austin statement with their austrian counterparts. During our time in austria our leaders emphasized both the chairman and the Ranking Member noted was poised to be a transformational initiative. Perhaps our most consequential Indo Pacific Defense partnership in a generation. Bite modernizing longstanding partnerships, it will strengthen our defense, enhance deterrence and contribute to peace, security and prosperity in the end of Pacific Region. It comprises two pillars in pillar one we are working to provide a story with the Nuclear Power conventionally armed a submarine capability as soon as possible. Impeller two we are partnering with australia and the uk to truly develop advanced military capabilities based on the most cuttingedge emerging technologies our nation possesses. Es the pastor is made significant progress on both. In march 23 United States, australia and the United Kingdom announce the optimalal pathway o prevent a story with a conventionally armed Nuclear Powered submarine capability at the earliest possible date. Modernizing the elf fleets will be a longterm multi decade undertaking and partners are moving had to implement this phased approach. On pillar two as a recent joint experiments on hypersonic technologies have demonstrated, we are leveraging the collective power of our industrial basis to create a trilateral ecosystem that combines the competitive and comparative advantages of each nation to strengthen our joint capabilities. Let me turn to legislation. As was noted by both the chairman and the Ranking Member for it to succeed we need to enable speedy seamless and secure technology and information sharing between our countries. Earlier this year the administration submitted a pillar to legislative proposal to congress. And as i said earlier were extremely grateful to this committee for insuring broad bipartisan support the substance of thehe proposal was included n the National Defense authorization bill. We look forward to working with congress and help the final version with the legislation needed across all four of the restoration proposal so we can deliver on the promise. To put it simply under the sentence a language most defense items will be able to move forward without needing a license. In approve entities within the three countries will be able to move defense items will retransfer them without meeting new authorization for this groundbreaking approach will ensure pillar two can have its full potential. Also ensuring safe guard the crown jewels of our Defense Technology. In the interim while the legislation is being worked on here the department of state is also implementing a novel use of existing authorities to expedite andd optimize and defense trait among our partners. The state Department Office trade authorization mechanism is an interim solution to stream my defense trait into legislation is enacted. Weve begun engaging with thehe committee on art mechanism will continue closely with congress as we finalize ourwo approach. We are also working with australian and british counterparts to ensure equal opportunity and access for american firms and workers within efforts. An alignment with the respective and International Trade obligations. Will have a stake in australia and the United Kingdom are two of our closest allies. We are proud to stand shoulder to shoulder as we strengthen our Longstanding Alliance and implement this Historic Partnership i look ahead and i look forward to work with this committee in congress to promote agile secure defense and cooperation between and among the partners. Thank you. And among the partners. Thank you. Chairman, Ranking Member thank you for the opportunity to testify before you today. Almost two years ago President Biden alongside leaders from us troy and the United Kingdom announce the creation of enhanced trilateral Security Partner