Australia tries to placate China over navy expansion

By Rob Taylor

CANBERRA (Reuters) - Australia sought to reassure China on Friday that plans to double its attack submarine fleet and buy warships capable of carrying ballistic missile shields in a $72 billion (48.7 billion pound) military upgrade were not aimed at Beijing.

The close U.S. ally will release a blueprint on Saturday covering military strategy for the next 20 years, including the purchase of 12 advanced new submarines that experts say could alarm China and accelerate an arms race in the Western Pacific.

"It follows very plainly that here in the Asia-Pacific region, there are in certain parts of the region the build up of armed forces," Prime Minister Kevin Rudd said on Friday.

"We simply need to take a calm, measured, responsible approach for the future to make sure that our army, navy and air force have the resources they need for the future."

Australia has already begun a $44 billion upgrade of the military, including new air warfare destroyers, cruise missiles, stealth fighters, aircraft carriers, tanks and helicopters.

But with the country teetering on the brink of recession, the centre-left government has been under pressure to rein-in spending amid market expectations that cumulative borrowings could top A$200 billion (98.4 billion pounds) in the May 12 budget.

At the same time, Southeast Asian powers are increasing the number of modern submarines in the region, with Indonesia planning to build 12 submarines by 2024 to patrol the far-flung archipelago.

Singapore, Thailand, Malaysia, Vietnam, South Korea, Bangladesh and Pakistan are also purchasing submarines, with Singapore to have six by 2016.