- OCCAR
Security Agreement between the Government of Australia and the Organisation for Joint Armament Cooperation (Organisation Conjointe de Coopération en Matière d’Armement) (OCCAR) on the Protection of Classified Information
2.1The Security Agreement between the Government of Australia and the Organisation for Joint Armament Cooperation (Organisation Conjointe de Coopération en Matière d’Armement) (OCCAR) on the Protection of Classified Information was referred to the Committee on 13 August 2024.
2.2The Committee held a public hearing in Canberra on 31 October 2024. A list of responses to questions on notice can be found at Appendix A. The hearing and witnesses are listed at Appendix B. The transcript of evidence from the public hearing can be accessed through the Committee’s website.
Overview
2.3The proposed Security Agreement between the Government of Australia and Organisation for Joint Armament Cooperation (Organisation Conjoint de Coopération en Matière d’Armement) (OCCAR) on the Protection of Classified Information (the Agreement) establishes security measures that Australia and OCCAR Member States would be required to follow to protect each other’s Classified Information that may be generated or exchanged through their joint activities.
2.4The obligations in the proposed Agreement are similar to those in other international security of information agreements to which Australia is a party. The Agreement does not apply to the exchange of information between Australia and other OCCAR Member or Participating States under separate bilateral agreements or arrangements in place with these states.
Background
2.5OCCAR is an inter-governmental organisation founded in Europe that coordinates defence equipment procurement and management Programmes for its Member States and Non-Member Participating States in OCCAR-managed Programmes. The current Member States are Belgium, France, Germany, Italy, Spain and the United Kingdom and the Non-Member Participating States are Finland, Lithuania, the Netherlands, Poland, Sweden, Türkiye, Luxembourg, Norway and Greece.
2.6Australia is currently a participating and observing member for some OCCAR-managed Programmes such as the Boxer Combat Reconnaissance Vehicle, Tiger Armed Reconnaissance Helicopter, and the MU90 Impact Lightweight Torpedo, and may participate in other OCCAR-managed Programmes in the future.
Justifications
2.7Australia participating in and observing OCCAR-managed Programmes creates a need to generate, exchange and use OCCAR and Australian Classified Information (up to and including SECRET). The proposed Agreement establishes mutual security arrangements for Classified Information between Australia and OCCAR. The Agreement contributes to Australia’s national interests by protecting Australian Classified Information and by ensuring that Australia can continue to participate in OCCAR Programmes.
2.8Currently, interim information security arrangements must be arranged for each OCCAR Programme that Australia is involved with. The Agreement would facilitate the sharing of Classified Information between the two Parties by ensuring it is protected to a mutually agreed standard. The proposed Agreement does not oblige either Party to share Classified Information.
2.9The Agreement is envisaged in the Framework Agreement between the Government of Australia and OCCAR for the Participation of Australia in OCCAR Managed Programmes Framework Agreement, to which Australia is already a Party, and is the final instrument required to support Australian ongoing participation in OCCAR-managed Programmes.
Obligations
2.10Article 1 defines terminology used in the Agreement. Australian Classified Information is defined as ‘any information, document or material the unauthorised disclosure of which, would cause prejudice to the interests of Australia, and which has been designated by an Australian security classification marking’. Originating Party is defined as ‘the party that provides Classified Information under the Agreement’ and the Receiving Party is ‘the party that receives the Classified Information and assumes responsibility for its protection’.
2.11Article 2 states that the Agreement’s objective is to define the security measures required for the protection of Classified Information provided to or generated by the Parties in connection with OCCAR-managed Programmes. The same Article clarifies that the Agreement does not apply to Classified Information exchanged under separate bilateral agreements or arrangements in place with other nations that participate in OCCAR.
2.12Article 3(1) stipulates that Originating Parties designate and mark Classified Information using the appropriate security classification according to its Regulations and Policies (as defined by Article 1(10)) and the applicable Programme’s Security Classification Guide.
2.13Article 3(2) defines the equivalences of the Parties’ Security Classifications:
- OCCAR SECRET and Australian SECRET are treated as equivalent;
- Australia treats OCCAR CONFIDENTIAL as Australian SECRET;
- OCCAR treats Australian PROTECTED as OCCAR CONFIDENTIAL; and
- Australia protects OCCAR RESTRICTED information in accordance with OCCAR Management Procedure (OMP) 11 (OCCAR Security Regulations). OMP 11 provides basic security standards for application by OCCAR, Programme Participating States and Programme Contractors to ensure a common standard of protection is afforded to all Classified Information in connection with an OCCAR Programme.
- Article 3(3) states that OCCAR protect Australian OFFICIAL: Sensitive information in accordance with the security measures outlined in OMP 12 (Handling of Unclassified Sensitive Information). OMP 12 provides minimum standards of protection for application by OCCAR, Programme Participating States and Programme Contractors to ensure unclassified sensitive information in connection with an OCCAR Programme is appropriately protected. In addition to the equivalencies listed in Article 3(2), Article 3(3) stipulates that Australia protect OCCAR Unclassified Sensitive Information as Australian OFFICIAL: Sensitive.
- If any security classifications are updated, Article 3(4) requires that Parties notify each other in writing of any such changes and may mutually decide to take these changes into account when interpreting Article 3. Article 4 requires that each Party notify the other of its Competent Authorities that are responsible for implementing the Agreement, as well as any changes to this Authority. Article 12(2) stipulates that each Party notify the other of any changes in its applicable Regulations and Policies that could affect the protection of Classified Information. At the public hearing for the inquiry, the Department of Defence confirmed that Australia’s Competent Authority would be the Defence Security Division.
- Article 5 outlines the obligations of a Party for the protection of the other Party’s Classified Information that is provided or generated under the Agreement. Parties must:
- ensure that such Classified Information is protected from unauthorised disclosure, loss or compromise, and take all necessary measures to ensure that legal or other appropriate action can be taken against the individuals or entities responsible for any such action;
- ensure such Classified Information is handled in a manner no less stringent than its own equivalent Classified Information and in line with OMP 11;
- ensure that the security classification of such Classified Information is maintained and respected and must not downgrade or declassify such information without the Originating Party’s consent;
- not use such Classified Information for purposes other than that for which it was provided, without the written consent of the Originating Party;
- not release such Classified Information without the written consent of the Originating Party, except to other OCCAR participants to which the information was provided;
- ensure that access to such Classified Information is limited to those persons who have a Need-to-Know, as defined by the OCCAR Regulations and Policies;
- ensure that persons having access to such Classified Information are aware of their responsibilities to adequately protect the information;
- ensure that, when such Classified Information is no longer required, it is returned to the Originating Party or destroyed in accordance with OCCAR’s Regulations and Policies;
- ensure that reproductions and translations of such Classified Information bear the original security classification markings, are protected to same standard as the original information, and that reproductions and translations are limited to the minimum needed.
- Article 5 also requires Australia to establish a registry system to:
- allow compartmentalisation of Classified Information at the level of OCCAR CONFIDENTIAL and OCCAR SECRET;
- limit access to Classified Information at the level of OCCAR CONFIDENTIAL or above only to government and Contractor employees who hold Australian nationality or the nationality of the OCCAR Programme Participating States to which the Programme Classified Information relates; and
- ensure that the approval of the Originating Party is obtained prior to releasing Classified Information at the level of OCCAR CONFIDENTIAL or above to persons not holding an approved nationality.
- Article 6 creates obligations for both Parties resulting from OCCAR awarding contracts that contain, generate, use or provide Classified Information to Contractors in Australia. OCCAR is required to notify Australia of the awarding of such Classified Contracts involving Classified Information at the level of OCCAR RESTRICTED and above.
- Australia is subsequently required to:
- administer the Agreement’s relevant security measures for the protection of the OCCAR Classified Information provided or generated;
- nominate and identify the Competent Authority responsible for implementing and overseeing the security measures at Contractor facilities within Australia;
- ensure that Contractors with access to Classified Information at the level of OCCAR CONFIDENTIAL or OCCAR are capable of handling and protecting such Classified Information in accordance with the Agreement, and that their facilities have been granted a Facility Security Clearance at the appropriate level; and
- verify the compliance of Contractors with the security requirements under the Agreement and with the relevant Programme Security Instructions.
- The international transfer of Classified Information between Parties and a government establishment or a Contractor is to be conducted in accordance with OCCAR Regulations and Policies and the relevant OCCAR Programme Security Instructions, as stipulated by Article 7.
- Article 8 permits representatives of a Party, Contractor or relevant OCCAR Programme Participating State to visit the facilities of the other Party or their Contractors. This must be requested in accordance with the procedures outlined in the Article. Article 12(3) obliges Parties to accommodate visits by the other Party’s Competent Authorities for briefings on the Receiving Party’s security regime and its measures to implement the Agreement’s security requirements.
- If there is a loss, compromise, unauthorised disclosure of Classified Information or an incident that could cause damage to the interests of the Parties, Article 9 requires the Receiving Party to report the breach to the Originating Party without delay, for them to conduct an immediate investigation (with the assistance of the Originating Party if required), and for them to inform the Originating Party of the investigation’s outcome and any subsequent corrective action. If there are any disputes between Parties, Article 11 requires them to be resolved through mutual consultation and/or negotiation.
- Parties must notify each other of the completion of their domestic requirements through an exchange of notes for the Agreement to enter into force. The Agreement then enters into force on the date of signature of the last note.
Consultation
2.24Australian State and Territory governments were consulted and had no comment on the Agreement.
Implementation and costs
2.25No legislative changes are required for implementation as Australian agencies are already required to adhere to the requirements of international security of information agreements. Each Party is responsible for its own costs of implementation. At the public hearing, the Department of Defence stated that they did not foresee any additional costs resulting from implementing the Agreement.
Withdrawal
2.26The Agreement may be terminated by mutual agreement in writing, or by any Party giving six month’s written notice of their intention to terminate. If the Agreement is terminated, the obligations for security of any information that had been provided under the Agreement continue to apply.
Future treaty action
2.27Any amendment to the Agreement can be made by mutual written agreement between the Parties.
Issues
Australia-Europe relations
2.28The Committee heard evidence on the impact that not ratifying the Agreement would have upon Australia’s existing strategic and defence relationships with European nations. The Department of Defence stated that the Agreement aligned with these relationships and would provide Australia with future opportunities to ‘further enhance defence cooperation with Europe and to broaden interoperability among a like-minded group of defence forces’.
2.29The Department of Defence said that a failure to ratify the Agreement would mean Australia was no longer compliant with the Framework Agreement between the Government of Australia and OCCAR for the Participation of Australia in OCCAR Managed Programmes Framework Agreement and would result in an inability to exchange Classified Information, including in OCCAR-managed Programmes that Australia is currently participating in.
2.30The Department of Defence further stated that the Agreement would create more meaningful opportunities to engage with OCCAR-managed Programmes such as the Boxer Combat Reconnaissance Vehicle Programme to which Australia currently holds observer status. The Department of Defence later said that ratification of the Agreement would make Australia privy to Classified Information arising from conflicts that other OCCAR Member States are involved in and that the ability to access and share that information would be ‘very useful to our own capability development’.
2.31The Department highlighted another benefit of the Agreement was that it would replace the need for interim security assurances for each OCCAR-managed Programme with a formalised, overarching security assurance.
Australian defence industry
2.32The Committee was presented with evidence highlighting the benefits that ratification of the Agreement would provide to Australia’s defence industry. The Department of Defence stated that the Agreement would allow Australia to participate in OCCAR-managed Programmes at the same level as other Members in the Programme and said that security restrictions are currently one of the most significant barriers to Australian defence industry participating in foreign programs.
2.33The Department of Defence said the Agreement would clarify security arrangements and reduce barriers to Australian industry engaging with their European counterparts on OCCAR-managed Programmes. The MU90 Impact Lightweight Torpedo Programme was cited as a Programme that Australia’s current participation in had been streamlined by a security arrangement with OCCAR Members.
2.34The Committee heard from the Department of Defence that in instances where Australian defence industry could demonstrate a cost or capability advantage, the Agreement:
…opens up the avenues for them to engage with European partners to discuss that through what would normally be constrained by classification issues and potentially opens up opportunities for those partners to engage Australian industry as part of the program where we can demonstrate that we would add value.
Conclusion
2.35The Committee recognises the role that Australia engaging in OCCAR-managed Programmes plays in serving its national interest. By ratifying the Agreement, the protection of Australia’s Classified Information would be ensured, as would Australia’s access to Classified Information that benefits Australia’s defence capability development.
2.36Ratifying the Agreement would ensure that Australia can continue to participate in OCCAR-managed Programmes such as the Boxer Combat Reconnaissance Vehicle, Tiger Armed Reconnaissance Helicopter, and MU90 Impact Lightweight Torpedo, and would remove the need for interim security arrangements between Parties. The Agreement is the final instrument required to support Australian ongoing participation in OCCAR-managed Programmes.
2.37The Committee heard evidence testifying to the importance of the Agreement in strengthening Australia’s strategic and defence relationships with European nations, as well as the benefits it would provide to Australian defence industry. The Committee was not presented with any concerns towards the Agreement and understands that it places no significant additional obligations or costs upon Australia.
2.38The Committee supports the Security Agreement between the Government of Australia and the Organisation for Joint Armament Cooperation (Organisation Conjointe de Coopération en Matière d’Armement) (OCCAR) on the Protection of Classified Information and recommends that binding treaty action be taken.