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Australia, UK to boost defense cooperation

Australia and the United Kingdom on Thursday signed a new defense and security cooperation agreement that makes it easier for their defense forces to operate together in each other's countries.

Britain's Foreign Secretary David Cameron and Defense Secretary Grant Shapps were in Australia for annual talks on Friday with their counterparts in Adelaide, where local media have reported a British company is expected to be named as the contractor to build a nuclear submarine under the AUKUS agreement.

The treaty signed on Thursday requires the two nations to consult in a contingency that affects the sovereignty and regional security of both countries.

In Canberra, Australia's Defense Minister Richard Marles said it added a strategic dimension to one of Australia's oldest partnerships, noting the U.K. had a much bigger presence in the Indo-Pacific region than seen in a long time.

Marles said Britain would contribute to a submarine rotational force in Australia, which would be made easier under the new treaty.

The U.K. would also contribute to a Combined Intelligence Centre in Australia, within Australia's Defense Intelligence Organization, he said.

Read more on cnbc.com