Abstract
This article identifies three problems which, it argues, are insuf ficiently recognized by Australian defence planners, and which tend to undermine the credibility of Australia's declared policy of regional engagement. These problems, or dilemmas, are: the declining value of the Australian-American alliance; the inadequate state of Australian defence self-reliance, including the poor pro spects for Australia's defence industry; and the consistent failure to meet previously announced defence expenditure targets. The article suggests that Australian defence policy has taken insufficient account of the regional consequences of the end of the Cold War, and that this failure has had adverse effects ? in parti cular, on the Defence Department's programme to substantially increase defence-related exports.
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