The Government of the United States of America (the “United States”) and the Government of Australia (“Australia”), hereinafter referred to singularly as “Participant” and collectively as “the Participants”:

a. Recalling the Security Treaty Between Australia, New Zealand, and the United States (the “ANZUS Treaty”), done at San Francisco on September 1, 1951;

b. Reaffirming the strong defense relations between the Participants based on a shared commitment to a stable and peaceful Asia Pacific and Indian Ocean Region and common approaches to address the region’s defense and security issues, including contemporary non-traditional security challenges;

c. Reaffirming the long-term shared intent to promote and strengthen closer bilateral defense and security cooperation;

d. In furtherance of the shared intent of the United States and Australia to expand and increase opportunities for joint and combined training of their military forces in locations within Australia through the force posture initiatives, as jointly announced by the President of the United States and the Prime Minister of Australia on November 16, 2011, and such other activities mutually decided upon by the Participants to be force posture initiatives (“force posture initiatives”);

e. Desiring to cooperate further in efforts to maintain regional peace and security;

f. Recognizing the Participants’ respective obligations and commitments under international law;

g. Recognizing that, subject to any other applicable agreements that are executed by the Participants, the Agreement Concerning the Status of United States Forces in Australia, and Agreed Minutes of Interpretation done at Canberra on May 9, 1963 (the “SOFA”), applies to members of the United States Forces, members of the civilian component, and dependants, as defined in the SOFA, present in Australia for the force posture initiatives;

h. Recognizing that, subject to the application of the SOFA and any other applicable agreements that are executed by the Participants, the Exchange of Notes constituting an Agreement between the Government of the United States of America and the Government of Australia concerning Certain Mutual Defense Commitments, effected by exchange of notes signed at Sydney and Canberra on December 1, 1995, as amended (the Chapeau Defense Agreement), applies to the force posture initiatives; and

i. Recognizing that, subject to any other applicable agreements that are executed by the Participants, the Agreement between the Government of Australia and the Government of the United States of America concerning Cooperation in Defence Logistic Support, done at Sydney, Australia on November 4, 1989, as amended and extended (CDLSA), and the Acquisition and Cross-Servicing Agreement between the Government of Australia and the Government of the United States of America, done at Canberra on April 27, 2010 (ACSA), apply to the force posture initiatives.

Have reached the following understandings:

PARAGRAPH 1

PRINCIPLES OF COOPERATION

The Participants intend to develop the agreements and arrangements necessary to accomplish the common vision for the force posture initiatives based on the following core principles:

a. The bilateral defense relationship between the Participants is based on full respect for the independence, self-reliance, and sovereignty of each Participant, and is in the spirit of the longstanding friendship, mutual respect, trust, and understanding that exist between the two countries;

b. An enduring defense and security cooperation partnership between the United States and Australia is of significant benefit to both nations and the region;

c. In recognition of Australian sovereign interests, the Participants intend to undertake mutually determined activities under the force posture initiatives in accordance with the conditions and requirements for consultation determined by the Participants, including Australia’s longstanding policy of Full Knowledge and Concurrence, where that is applicable; and

d. The Participants intend that mutually determined activities under the force posture initiatives be conducted on the basis of equitable and sustainable financial and non-financial contributions, in accordance with each Participant’s applicable financial management laws.

PARAGRAPH 2

PURPOSES OF THIS STATEMENT OF PRINCIPLES

The purposes of this Statement of Principles are to:

a. Guide the Participants in the development of a framework for cooperation to focus, strengthen, and expand the bilateral defense relationship through the force posture initiatives;

b. Promote a common vision that:

i. Shapes the Participants’ expansion of practical bilateral defense cooperation through the force posture initiatives; and

ii. Focuses on progressing the force posture initiatives in a manner that ensures continued domestic and regional support; and

c. Affirm the intention of the United States and Australia to pursue a legally binding agreement, including principles for cost-sharing and access to and use of mutually determined facilities, to provide a foundation for expanded collaboration between the Participants through the force posture initiatives.

PARAGRAPH 3

SCOPE OF EXPANDED DEFENSE AND SECURITY COOPERATION

In furtherance of expanded defense and security cooperation, the Participants intend that:

a. The type and scope of mutually determined activities to be undertaken by the United States Armed Forces under the force posture initiatives may include security cooperation exercises; joint and combined training activities; humanitarian and disaster relief activities; and such other activities as the Participants may mutually determine; and

b. United States Armed Forces have access to, and use of, locations in Australia for mutually determined activities under the force posture initiatives.

This Statement of Principles is intended to guide the Participants or their designated representatives in the steps necessary and appropriate to develop the agreements and arrangements to accomplish the common vision for the force posture initiatives.

For the Government of For the Government of

the United States of America: Australia:

__________________________ __________________________

Secretary of State Minister for Foreign Affairs

_______________________ _______________________

Secretary of Defense Minister for Defence