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This paper will provide background for the other four papers on the panel. It will examine the recent history of US-Austrlian defense cooperation, with particular emphasis on three areas:- Grand Strategy: Do Washington and Canberra share a common grand strategy regarding the use of military force in an age of terrorism?- Military Operations: How successful have US and Australian forces been at working together in coalition operations?- Defense capabilities: What is the current state of (and future prospects for) defense capabilities in these two countries? Do the trends predict to increased cooperation or divergence? ..PAT.-Conference Proceeding [ABSTRACT FROM AUTHOR]