AUSTRALIA'S defence co-operation with the US will be significantly upgraded under a new treaty that gives unprecedented access to the latest American military technology and equipment.

The deal will provide lucrative opportunities for Australian companies to tap into leading US defence projects, including the $15billion Joint Strike Fighter project. The treaty will also ease restrictions on the purchase of Australian-made defence equipment by the US.

The treaty was among several new measures, including more joint training and military exchanges, announced yesterday by John Howard and US President George W.Bush.

The measures usher in a new era of defence co-operation between the two allies, who have already forged closer links in recent years through their shared military commitments in Iraq and Afghanistan.

Mr Bush described the new Treaty on Defence Trade Co-operation as an important step for the two countries. "It helps cut through the bureaucracy so that we can transform our forces better, share technology better and, frankly, enable our private sectors to work together to develop new defence capabilities to defend ourselves," he said.

The Prime Minister said the new defence initiatives were a significant enhancement of an already close relationship.

He said the treaty would clear the red tape that had previously hampered Australian companies from acquiring US technology.

Australia would now enjoy the same privileged access to the US market as British defence companies had.

Mr Howard said other measures included more joint training and operations with US forces. Joint training capability would be enhanced by the provision of additional support for training by US and Australian forces in Australia, and further co-operative efforts to develop access and capabilities for international surveillance and reconnaissance.

He also said Australia and the US would increase co-operation on humanitarian assistance and disaster relief to better cope with regional disasters such as the 2004 tsunami.

This could involve the stationing by the US in Australia of equipment and stores that would be readily available for use in disaster relief in our immediate region, Mr Howard said.

The new defence trade treaty will allow the licence-free export of defence equipment, technology and information between Australia and the US, removing the logjam of delays caused by the slow licensing processes.

It would also provide for greater access and sharing of equipment, technology, information and services between the twocountries, a Defence spokesman said.

Raytheon Australia, the country's leading missile systems integrator, said the treaty represented an important step forward insecurity co-operation with theUS.

"It is a real plan for real jobs," said Raytheon Australia managing director Ron Fisher.

"By giving Australia's emerging defence industry greater autonomy and enabling easier technology transfer, the agreement removes a big roadblock to the growth of jobs."

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