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Australia is in talks to build US ballistic missiles on home soil as Washington looks to store a stockpile of munitions in the Top End amid rising tensions with China

While nothing has been finalised, Prime Minister Scott Morrison announced in March the government plans to shell out $1billion to start producing hi-tech guided missiles in Australia.

‘These things aren’t instantaneous but our militaries and strategic thinkers are engaged in discussions about how best to confront these new challenges ­together,’ Mr Goldman said.

‘A lot of that just makes perfect intuitive sense, particularly when we talk about how we are going to project force in any sort of contingency.

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