US to move the majority of its naval fleet to Asia

“We will invest in the newest technologies. And we will invest in new
technology to mobilise quickly, if necessary.

“We will play an essential role in promoting strong partnerships that
strengthen the capabilities of the Pacific nations to defend and secure
themselves.”

Mr Panetta was speaking during an eight-day trip to Asia, which will also take
him to India and Vietnam.

Asked if increased involvement in the region would stoke tensions between the
US and China, he said: “I reject that view entirely. Our effort to renew and
intensify our involvement in Asia is fully compatible with the development
and growth of China.

“Indeed, increased US involvement in this region will benefit China as it
advances our shared security and prosperity for the future.”

The US was “clear eyed” about its China, Mr Panetta said, adding: “We’re not
naive about the relationship, and neither is China. But we also both
understand that there really is no other alternative but for both of us to
engage.”

Addressing the annual Shangri-La Dialogue conference, the defence secretary
said enhanced military cooperation had to be accompanied by a “rules-based
order” which allowed “open and free commerce, and open access by all to
their shared domains of sea and air”.

He called for a peaceful resolution of a territorial dispute over the South
China Sea, one of the busiest shipping areas in the world with lucrative
natural gas and oil along with valuable fishing rights.

Beijing insists it should control most of the Sea despite opposing claims from
Taiwan, Vietnam, Malaysia, Singapore, Brunei and the Philippines.

As part of the focus on Asia, the US Navy will base four new lightly-armed
ships in the Strait of Malacca, which links the Indian and Pacific oceans.

The defence secretary also gave some clues as to how the US would allocate its
resources at a time when finances are tight and Asian nations are increasing
defence spending at a higher rate than the West.

In contrast, the US is due to shave nearly half a trillion dollars from its
defence budget over the next 10 years.

He set out how America would invest in the latest technologies, including “new
aerial refuelling tankers, a new bomber, an advanced maritime patrol and
anti-submarine warfare aircraft.”

“It will take years for these concepts, and many of the investments we are
making, to be fully realised,” Mr Panetta said.

“But make no mistake, in a steady, deliberate and sustainable way, the United
States military is rebalancing and brings enhanced capabilities to this
vital region.”

Speaking at the same conference, John McCain, the former Republican
presidential candidates, said it was inevitable that US budget cuts would
affect the new Asia strategy.

He said: “At some point, and I think we are at that point, we will not be able
to carry out the commitments.”

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