[Australia]: Message to Spain [SEC=TOP SECRET]

[Owen]

​

MINISTER FOR DEFENCE​

SECURITY CLASSIFICATION: TOP SECRET​

16 February 2007

Dear Minister Arce, During Spain's previous administration we had selected Spain as our partner of choice to provide the next generation of naval assets to the Royal Australian Navy, particularly the Juan Carlos-class, the Alvaro de Bazan-class and the Cantabria-class. The previous administration of Spain was supportive of this and we had entered negotiations for the purchase, however these talks went cold and nothing had concluded from them. We are hopeful this time that this new Spanish administration would be more.... responsive, to our meetings and messages. I am proposing that the Ambassador to Spain, Ms. Susan Tanner, will meet with the relevant counterparts in Spain to renegotiate a deal, if your government is generally supportive of this proposal. Yours sincerely, John Faulkner.

Parliament House, CANBERRA, ACT 2600 Telephone: (02) 6277 7700​

Protective Marking:	Business Impact Level:	Compromise of Information Confidentiality:	Required to be Encrypted:
UNOFFICIAL	No Business Impact	No damage. This information does not form part of official duty.
OFFICIAL	Low Business Impact	No or insignificant damage. This is the majority of routine information.
OFFICIAL: Sensitive	Low to Medium Business Impact	Limited damage to an individual, organisation or government generally if compromised.
PROTECTED	High Business Impact	Damage to the national interest, organisations or individuals.
SECRET	Extreme Business Impact	Serious damage to the national interest, organisations or individuals.
TOP SECRET	Catastrophic Business Impact	Exceptionally grave damage to the national interest, organisations or individuals.

JamieA

 

[JamieA]

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Security Classification: Private and Secure
To: John Faulkner < Owen >
Cc:
From: Andrónico Arce
Subject: Standing Firm
Type: DIPLOMATIC CABLE

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Dear Minister John Faulkner,

Thank you for your correspondence. I would be most pleased to meet with the Australian Ambassador, Ms. Susan Tanner. However, I must emphasize that this administration has no intention of selling any defence equipment essential to the security of the Kingdom of Spain in the absence of a formal bilateral relationship and a mutually agreed framework between our two countries.


Warmest Regards,
Andrónico Arce
Minister of Defence, Kingdom of Spain

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© Spain​

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[Owen]

​

MINISTER FOR DEFENCE​

SECURITY CLASSIFICATION: TOP SECRET​

16 February 2007

Dear Minister Arce, I'm sure we can come to some sort of a mutually agreed framework and I'm sure the Ambassador will be able to work on that proposal. She will meet with you shortly. Yours sincerely, John Faulkner.

Parliament House, CANBERRA, ACT 2600 Telephone: (02) 6277 7700​

Protective Marking:	Business Impact Level:	Compromise of Information Confidentiality:	Required to be Encrypted:
UNOFFICIAL	No Business Impact	No damage. This information does not form part of official duty.
OFFICIAL	Low Business Impact	No or insignificant damage. This is the majority of routine information.
OFFICIAL: Sensitive	Low to Medium Business Impact	Limited damage to an individual, organisation or government generally if compromised.
PROTECTED	High Business Impact	Damage to the national interest, organisations or individuals.
SECRET	Extreme Business Impact	Serious damage to the national interest, organisations or individuals.
TOP SECRET	Catastrophic Business Impact	Exceptionally grave damage to the national interest, organisations or individuals.

The Embassy's Jaguar XJ would depart with the Ambassador from the underground carpark of the office tower which houses the Australian Embassy on the northern side of Madrid and would head towards the Minister of Defence's main office.

JamieA

 

[JamieA]

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Upon hearing that the Australian Jaguar XJ was en route, the Defence Minister swiftly dispatched the Guardia Civil to help guide the vehicle through the busy Madrid streets. Meanwhile, he directed a few aides to the conference room, ensuring it was prepared for the imminent arrival of the Australian Ambassador.

Out of courtesy, the Defence Minister chose to wait outside the Ministry building. When the sleek car finally pulled up, a Guardia Civil officer stepped forward, opening the door for the Ambassador. The Defence Minister was already there, hand extended, greeting the visitor with a firm handshake before leading the way into the building.

“Ms. Ambassador, how are you?” he began warmly, as they entered the conference room. Gesturing toward a chair, he added with a measured tone, “I want to reiterate that the Kingdom of Spain is not prepared to part with or sell any equipment after a single meeting.” He then took his seat opposite the Ambassador, with a few of his advisors positioned on either side.

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Owen

 

[Owen]

She would shake the Minister's hand.

"I am doing very well, it is a pleasure to meet you and may I congratulate you on your recent election victory."

She would follow him into the conference room and would take a seat.

"We did have an at times, productive relationship, with the previous administration of Spain, but they were not very good at upkeeping it on their end. Already this administration is more than attentive. I would like to hear what you have proposed for a mutually agreeable framework, which was mentioned in your message."

JamieA

 

[JamieA]

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Andrónico listened attentively as the Australian spoke, then gave a thoughtful nod.

“As you mentioned, the previous administration fell short” he began, “I can only speak to defence agreements, mutual cooperation, and the like. However, I have received word from the Foreign Ministry that they would be willing to consider arrangements in areas such as educational cooperation and trade agreements.”

He paused, turning his gaze toward the office window for a moment before continuing.

“We would be more than happy to sell the Cantabria-class before further relations are fully established. How many units are you seeking?”

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Owen

 

[Owen]

"We are looking at purchasing 3 units of that class of ship.

Certainly we do believe there are many areas of cooperation between Australia and Spain. Particularly within education or trade space, but also within the arts sector as well. We are interested in having a special exhibition hosted at the National Gallery of Australia honouring the work of Pablo Picasso, with many of his works coming to Australia from Spain. The Office for the Arts has a strong framework to host international exhibitions, including the International Exhibitions Insurance Program which offsets the costs associated with insuring them and the National Gallery, being a government institution means we will cover the cost of the exhibit. This can be jointly sponsored with the Government of Spain.

Currently in terms of defence, certainly something we can look at. If Spain is interested in aligning itself with the western world of the United States and the United Kingdom, we can certainly work a lot more closely with Spain on defence. I'm not sure what Spain's long-term strategic goals are, but do they involve the Indo-Pacific at all? Or are you solely focused on Europe and the surrounding region?"

JamieA

 

[Owen]

JamieA

 

[JamieA]

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"I will arrange a sales invoice for those three units. At this time, we are not seeking a free trade agreement; however, a fair trade agreement could be acceptable, under which we would reduce our current tariffs from 30% to 15%. Would this be acceptable to your administration?" as the Defence Minister spoke, an aide from the Ministry of Economy, Trade and Enterprise would place a pre-made document in front of the Minister who would then in return pass it over to the Australian after reading it

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FAIR TRADE AGREEMENT
KINGDOM OF SPAIN
&
Commonwealth of Australia​

Preamble
The Government of the Kingdom of Spain and the Government of the Commonwealth of Australia (hereinafter referred to as “the Parties”),

• Recognizing the mutual benefits of enhancing trade and economic cooperation,
• Seeking to strengthen diplomatic and economic relations,
• Committed to respecting each nation’s sovereignty, laws, and international obligations,

Have agreed as follows:

Article I – Purpose
The purpose of this Agreement is to facilitate and regulate trade between the Parties, establish a framework for the import and export of goods and services, and promote mutual economic growth.

Article II – Scope of Trade
This Agreement shall apply to the trade of goods and services legally recognized in both the Kingdom of Spain and the Commonwealth of Australia.

Prohibited or restricted items under either Party’s national legislation shall not be subject to this Agreement.

Both Parties shall encourage the use of domestic carriers and authorized trade channels for the transportation of goods.

Article III – Trade Fees and Tariffs
All goods imported or exported under this Agreement shall be subject to a 15% trade fee, payable to the respective customs authority of the importing Party.

Both Parties agree not to impose additional hidden tariffs or surcharges beyond the 15% trade fee, unless mutually agreed in writing.

Article IV – Customs and Documentation
Both Parties shall ensure simplified customs procedures to facilitate trade under this Agreement.

Certificates of origin, invoices, and shipping documentation shall be standardized to reduce administrative delays.

A Joint Customs Committee shall be established to oversee compliance and resolve documentation disputes.

Article V – Dispute Resolution
Any disputes arising from the interpretation or implementation of this Agreement shall first be resolved amicably through diplomatic consultations.

If unresolved, the dispute may be referred to an Arbitration Panel composed of three members:

• One appointed by the Kingdom of Spain,
• One appointed by the Commonwealth of Australia,
• And a neutral chairperson mutually agreed upon by both Parties.

Article VI – Duration and Termination
This Agreement shall enter into force upon signature by both Parties and remain valid for five (5) years, with automatic renewal for successive five-year periods unless terminated by written notice.

Either Party may terminate the Agreement with six (6) months’ written notice to the other Party.

Article VII – Final Provisions
Any amendments or modifications to this Agreement must be made in writing and signed by both Parties.

This Agreement is drafted in Spanish, Persian, and English, all texts being equally authentic.

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For the Kingdom of Spain:
(Name, Title)

For the Commonwealth of Australia:
(Name, Title)

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© Spain​

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Owen