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US to establish joint military headquarters with Japan, Beijing reacts

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The foreign and defence ministers of Japan and the United States on Sunday announced a far-reaching update of their alliance in the face of what they described as “profound global threats” to peace and security.

At a so-called ‘2+2’ meeting in Tokyo, Japanese Foreign Minister Yoko Kamikawa and Defence Minister Minoru Kihara and their US counterparts, Antony Blinken and Lloyd Austin, agreed to establish a new US Joint Forces Headquarters to assume ‘primary responsibility for coordinating security activities in and around Japan’.

This headquarters will be at the centre of efforts to ‘facilitate deeper interoperability and cooperation’ between US and Japanese defence forces in the Indo-Pacific region, the ministers said in a statement. They pledged to strengthen the two countries’ “deterrence capabilities” and expand intelligence sharing and cyber security measures.

During their talks, the ministers highlighted security challenges such as China’s activities in the South and East China Seas, North Korea’s missile development and both countries’ growing cooperation with Russia. They also discussed Russia’s ‘unjustified’ invasion of Ukraine.

We are at a historic crossroads, a critical juncture where today’s decisions will determine our future,’ Kamikawa told the joint press conference.

In their statement, the ministers acknowledged ‘the depth of the global threats to the shared vision and values of our alliance’, reaffirmed their countries’ determination to stand together, and reiterated the US commitment to defend Japan with all the means at its disposal.

Given the increasingly challenging security environment created by recent actions by regional actors’, the United States reaffirmed its ‘unwavering commitment’ to Japan’s defence ‘by all means at its disposal, including nuclear’.

Key to the strengthened alliance would be a ‘reconfigured’ US-Japan Force (USFJ), a joint air, land and sea headquarters reporting to the commander of the US Indo-Pacific Command in Hawaii. The ministers said the USFJ ‘is intended to serve as a key counterpart to the JJOC’.

JJOC refers to Japan Joint Operations Command, a new headquarters that will oversee the air, land and sea units of the Self-Defence Forces and is expected to be established by 2025.

Austin said at the press conference that updating the USFJ ‘will be the most significant change to US Forces Japan since its inception and one of the strongest developments in our military relationship with Japan in 70 years’.

The current USFJ, established in 1957, is headquartered at Yokota Air Base, west of Tokyo. Coordination between the US military and the Japanese Self-Defence Forces (SDF) has been carried out from Hawaii, but will be managed by the USFJ under the new system, which will be implemented ‘in a phased approach’, according to the joint statement.

The new USFJ ‘from peacetime to contingencies’ It will work with the SDF.

Blinken said the ministers were ‘delivering on commitments’ made by US President Joe Biden and Japanese Prime Minister Kishida in Washington in April to revise the command and control framework for regional defence operations.

Right now the alliance is stronger than ever,” Blinken said, adding: ‘I know it will be sustained regardless of the outcome of the elections in our countries.

Sunday’s dialogue came amid heightened tensions in the South China Sea, where there have been several clashes between Chinese and Philippine ships in recent months.

In a statement, the Japanese and US ministers expressed their ‘strong objections’ to China’s ‘threatening and provocative activities in the South China Sea’. They also condemned China’s ‘intensified attempts to unilaterally change the status quo in the East China Sea through force or coercion’ and objected to Russia’s military cooperation with Beijing.

The ministers said China’s foreign policy ‘poses the greatest strategic challenge in the Indo-Pacific region and beyond’.

The ministers reiterated their aim to ‘increase bilateral presence’ in Japan’s southwest islands, the westernmost of which are just 110 kilometres from Taiwan. They warned against ‘provocative actions in the Taiwan Strait’.

They also reaffirmed the need for multilateral coordination to ensure security in the Indo-Pacific region and looked forward to the Quartet foreign ministers’ meeting with Australia and India scheduled for Monday in Tokyo.

On the South China Sea, ministers welcomed greater cooperation with the Philippines. The US, Japan and the Philippines held their first trilateral summit in April and the leaders pledged close cooperation on defence and security in the Indo-Pacific.

The ministers called for deeper cooperation with South Korea over North Korea’s ‘continued reckless ballistic missile launches’ and its growing strategic relationship with Russia.

Sunday’s statement also announced a ‘high-priority’ plan to strengthen Japan-US defence industry cooperation by increasing production in Japan of the Patriot PAC-3 surface-to-air and advanced medium-range air-to-air missiles. Both of these US-developed weapons can be used to intercept ballistic missiles.

Following the two-plus-two meeting, the US and Japan held their first ministerial-level meeting on ‘extended deterrence’, a term referring to the US pledge to use nuclear weapons to defend its allies if attacked. According to a separate statement, the meeting aimed to strengthen bilateral cooperation on ‘arms control, risk reduction and non-proliferation’ in the face of growing nuclear threats from North Korea, China and Russia.

The Tokyo-Washington dialogues followed a trilateral meeting between the defence ministers of South Korea, Japan and the United States on Sunday morning, during which they signed a memorandum of understanding to enhance military cooperation in East Asia. The cooperation will include real-time intelligence sharing on North Korean missile launches, regular ministerial meetings on defence issues, and continued joint military training.

The MoU institutionalises the details of the ‘new era of trilateral partnership’ announced by Kishida, Biden and South Korean President Yoon Suk-yeol at a meeting in Camp David, US, last August. With the signing of this memorandum, our trilateral cooperation has become stronger and more steadfast,’ Japanese Defence Minister Kihara told reporters on Sunday.

China reacts

Joint statements by the United States and Japan ‘falsely accused’ China on maritime issues and pointed fingers at its normal military development and defence policy, the Chinese Foreign Ministry said on Monday.

They have maliciously attacked and discredited China on maritime issues and made irresponsible remarks about China’s normal military development and national defence policy,’ Chinese Foreign Ministry spokesman Lin Jian told a regular press briefing.

‘Beijing is absolutely not satisfied with the exaggeration of China’s threat and malicious speculation about regional tensions,’ Lin added.

‘China has always followed the path of peaceful development, adopted an inherently defensive national defence policy, and its national defence construction and military activities are legitimate and reasonable,’ Lin said, adding that Beijing has ‘always kept its nuclear capability to the minimum necessary for national security and poses no threat to any country’.

‘We call on the United States and Japan to immediately stop interfering in China’s internal affairs and stop creating imaginary enemies,’ the Chinese official added.

DIPLOMACY

Argentina and the IMF: Negotiations begin for a new $44bn agreement

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Argentina is pursuing a new agreement with the International Monetary Fund (IMF) to replace its current $44 billion arrangement. The effort signals a significant shift in the country’s financial strategy under President Javier Milei’s administration.

IMF Chief Spokesperson Julie Kozack confirmed on Thursday that the Milei government is prioritizing the establishment of a new programme over completing the final reviews of the existing deal inherited from the previous administration. According to a Bloomberg report, Kozack stated, “The authorities have formally expressed their desire to move to a new programme, and negotiations are now underway.”

The discussions intensified following a visit earlier this month by officials from Economy Minister Luis Caputo’s office and the central bank to Washington, where they engaged with IMF representatives.

The central question in the negotiations revolves around whether the IMF will extend additional financing beyond the $44 billion already allocated to Argentina. Milei had previously suggested an additional $15 billion, although he has not reiterated this figure recently. However, Caputo indicated this week that new funding could be included as part of the prospective programme.

If the parties reach an agreement, it would mark Argentina’s 23rd programme with the IMF since 1958 and its third since 2018. Historically, the IMF’s interventions in Argentina have faced criticism, as many past agreements failed to stabilize the economy. Successive governments often violated programme objectives, raising doubts about the effectiveness of IMF support in the country.

President Milei and his chief negotiator, Caputo, have a history of strained relations with the IMF. Earlier this year, Milei publicly criticized Rodrigo Valdes, one of the IMF’s senior officials, leading to Valdes stepping back from negotiations. Similarly, Caputo clashed with the IMF during his tenure as finance minister in 2018, particularly over exchange rate policies, which eventually prompted his resignation after a short stint as central bank governor.

Despite these tensions, the IMF has commended the Milei administration for implementing measures to cut spending, reduce inflation, and narrow gaps between the country’s various exchange rates.

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DIPLOMACY

Trump threatens tariffs on the EU over energy purchases

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U.S. President-elect Donald Trump has issued a warning to the European Union (EU), stating that the bloc may face tariffs if it does not increase its purchases of U.S. oil and gas on a “large scale.”

“I told the European Union that they must close the enormous gap with the United States by buying our oil and gas on a large scale. Otherwise, TARIFFS!!! in every way!!!” Trump declared in a post on the Truth Social platform on Friday.

European Commission President Ursula von der Leyen previously suggested that the EU could explore the possibility of importing more liquefied natural gas (LNG) from the U.S. “We still buy a lot of LNG from Russia, and why not replace it with American LNG, which is cheaper for us and lowers our energy prices?” von der Leyen remarked to reporters in November.

An EU official, speaking to the Financial Times (FT), noted the peculiarity of Trump’s threat, given von der Leyen’s earlier openness to the idea of increasing LNG imports from the U.S.

Currently, the United States is Europe’s largest supplier of LNG, though Russia remains the EU’s second-largest source. The possibility of replacing Russian LNG with U.S. imports aligns with the EU’s efforts to diversify its energy sources.

Trump has also floated the possibility of a general tariff of up to 20% on all non-Chinese imports, which could have significant implications for EU-U.S. trade relations.

In November, European Central Bank President Christine Lagarde urged European leaders to engage with the U.S. on trade matters, including tariffs, and to consider purchasing more U.S.-manufactured goods. This call for cooperation echoes measures taken during Trump’s first term, when then-European Commission President Jean-Claude Juncker pledged to buy more U.S. gas to avert the risk of a trade war.

Global oil prices have shown sensitivity to these developments. On Friday, international oil benchmark Brent crude prices dropped 0.4% to $72.61 per barrel, while West Texas Intermediate (WTI) futures also fell 0.4%, trading at $69.14 per barrel.

The U.S., currently the world’s largest producer of crude oil and exporter of LNG, has been strengthening its energy trade partnerships. Buyers, including the EU and Vietnam, are reportedly considering increased fuel purchases from the U.S., partly to mitigate the risk of potential tariffs.

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DIPLOMACY

London pushes for continued U.S. support to Ukraine amid leadership transition

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UK Prime Minister Keir Starmer urged Donald Trump on Wednesday to ensure that Western allies “stand together” in supporting Ukraine against Russian aggression.

During a phone call with the U.S. president-elect, their second conversation since Trump’s electoral victory in November, Starmer emphasized the importance of unified support for Ukraine, stating that “allies must stand with Ukraine… and ensure that Ukraine is in the strongest possible position.”

A spokesperson for the British Prime Minister’s Office described the discussion as highlighting a “shared desire to strengthen the close and historic relationship between the United Kingdom and the United States.”

Starmer began the call by congratulating Trump on his recent team appointments. Trump responded by “warmly recounting” his recent meeting with Prince William, Prince of Wales, in Paris earlier this month, according to the Prime Minister’s Office.

As Trump prepares to take office next month, he has expressed intentions to seek a deal to end the war in Ukraine, though he has also publicly criticized certain Western policies, including the approval of missile supplies to Ukraine for use on Russian soil.

In an interview with The Sun on Tuesday, Starmer expressed hope to revive trade talks with the incoming U.S. administration. These negotiations had stalled two years ago under President Joe Biden. The leaders also expressed mutual anticipation of meeting in person “at the first opportunity.” According to the i newspaper, Starmer may visit the U.S. in early February.

Meanwhile, The Telegraph reported that Starmer’s chief of staff, Morgan McSweeney, conducted private meetings with senior members of Trump’s team earlier this month. McSweeney traveled to Florida to meet Susie Wiles, Trump’s chief of staff-designate, who played a pivotal role in managing his re-election campaign. He also held discussions in Washington with Congressman Mike Waltz, Trump’s incoming National Security Adviser.

A senior source in the Prime Minister’s Office described the interactions as “very warm,” adding that “President Trump has a warm approach to the UK. As the year draws to a close, the Starmer team is confident that the UK is well-placed for a strong bilateral relationship with the new president.”

Starmer’s delegation to the U.S., which began on December 2, included Jonathan Powell, former chief of staff to Tony Blair and now Starmer’s national security adviser. Together with McSweeney, Powell engaged in policy discussions on Ukraine, China, and the Middle East, identifying areas of alignment and divergence between the two leaders.

According to The Telegraph, those close to Starmer believe Trump is currently in “listening mode” on Ukraine, carefully evaluating strategies to fulfill his campaign promise of resolving the conflict “on day one” of his presidency.

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