Mr Shanahan was outlining the US’ plans to spend more than $250billion on a range of defence initiatives aimed at strengthening its capabilities in the Indo-Pacific region.He made his comments during a speech at the Shangri-La Dialogue 2019 conference, organised by the International Institute for Strategic Studies (IISS) in Singapore. North Korea, led by Kim Jong-un, undertook a number of missile tests in 2017 which dramatically escalated tensions with the United States, and despite two rounds of talks with President Donald Trump aimed at securing “denuclearisation of the Korean pensisula”, no deal has yet materialised. Mr Shanahan said: “We acknowledge that North Korea has neared a point where it could credibly strike regional allies, US territory, and our forward-deployed forces.

North Korea remains an extraordinary threat and requires continued vigilance

Patrick Shanahan

“North Korea remains an extraordinary threat and requires continued vigilance.”

Mr Shanahan said the US was increasing investments in “contested domains like space and cyber”, as well as undersea warfare, tactical aircraft and missile defences.

He added: “We are focused on the future in our request of $104 billion – the most ever – in research and development in the next fiscal year, with significant investment in emerging technologies like AI, hypersonics, and directed energy, much of which is aimed at unique operational challenges in this theatre.

“We have also spent the last two years focused on restoring the readiness of our forces.

“We continue to build on these gains with $125 billion in operational readiness and sustainment requested for the next fiscal year.

“This funding will boost the depth and capacity of our armed forces, and also help expand our training – including with allies and partners – to improve mission readiness critical to meeting this region’s challenges.”

Mr Shanahan made no specific reference to the South China Sea, where China has fortified a large number of islands which it claims are within its territory – but said the United Sates continued to back the people of Taiwan “to determine their own future”.

He said: “We maintain that any resolution of differences across the Taiwan Strait must occur in the absence of coercion and accord with the will of the people on both sides of the Taiwan Strait.”

He added: “And while America works with allies within the region, we also leverage our global alliances on behalf of Indo-Pacific security.

“We welcome leadership from France, Canada, and the United Kingdom on asserting navigational rights and upholding the international rule of law.

“We also thank Germany and Spain for helping to enforce UN Security Council Resolutions on North Korea.”

Describing the Indo-Pacific as “our priority theatre” he emphasised:

• US investment in advanced missile defence systems, interoperable with allied systems

in Japan, Australia, and South Korea.

• Strategic enhancements such as Columbia-class ballistic missile submarines and the purchases of 110 fourth- and fifth generation aircraft and advanced munitions.

• Acquisition of 10 new destroyers to increase anti-surface and anti-submarine warfare capabilities, and ballistic missile defence.

US President Donald Trump appointed Mr Shanahan in place of predecessor Jim Mattis at the end of last year, two months earlier than had been expected after apparently being angered at the brusque tone of the former Defence Secretary’s resignation letter and its implicit rebuke of his foreign policy.

Mr Mattis had said Mr Trump deserved to have a defence secretary “more aligned with his views”.

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