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Think tank close to Turnbulls receives $12m government grant

Aaron Patrick
Aaron PatrickSenior correspondent

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The United States Studies Centre, a foreign policy think tank with close links to the Turnbull and Murdoch families, has been given $12 million by the federal government.

The think tank, Based at Sydney University, was established by the American Australian Association to promote the US alliance, train students, develop policy and provide an intellectual counterweight to American critics in Australian universities.

The grant, which was announced on Sunday, will be provided through the AAA, which was co-founded by Rupert Murdoch's father, Sir Keith Murdoch. Part of the money will go to USAsia Centre, which is the US Study Centre's sister organisation located at the University of Western Australia.

RSL NSW president James Brown, far left, and Lucy Turnbull with US Vice-President Mike Pence in Sydney last year. 

The grant is an example of how politically connected organisations are often effective at lobbying governments for funding.

Prime Minister Malcolm Turnbull's wife, Lucy Turnbull, is the United States Studies Centre's "patron".

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Their son-in-law, James Brown, was the think tank's research director from 2015 until a few months ago, when he resigned to devote time to the unpaid role as president of the NSW division of the Returned and Services League of Australia, which is going through a financial scandal.

Fight over the Ukraine

Mr Brown, a former army captain, remains a non-resident fellow of the think tank. He became involved in a public dispute last year with one of the centre's researchers, Tom Switzer, who questioned the accuracy of an essay by Mr Brown that asserted former prime minister Tony Abbott's staff considered sending 3000 Australian and Dutch soldiers into the war in Ukraine to guard the crash site of a downed Malaysian airliner.

Mr Switzer now heads up the Centre for Independent Studies, a Sydney free-market think tank focused on domestic policy. Mr Switzer and Mr Brown are both well-known figures in the NSW Liberal Party.

"I suspect what has happened here is they were meant to get this money in the budget last year but because of the controversy surrounding James Brown and the treatment of Tom Switzer it was too hot to give them the money," a former associate of the US Studies Centre said.

Malcolm Turnbull with daughter Daisy and son-in-law James Brown (left) at Government House in 2015. Andrew Meares

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Government spokespeople declined to discuss, on the record, the close ties between the think tank and the Turnbull family.

The think tank has been criticised by both sides of politics. Conservatives, including former Labor leader Mark Latham and Sydney Institute director Gerard Henderson, have accused it of political bias for failing to predict the election of US President Donald Trump.

'No criticism of the alliance'

Others closer to the centre claim it has discouraged critical analysis of the Australian-US alliance.

"They don't want even mildly critical [research] or reflective scholarship on where this relationship is going," the former associate said.

Simon Jackman, the CEO US Studies Centre, left, at a conference in Canberra. Sean Davey

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Negotiations for the four years of funding were handled by the American Australian Association, and Ms Turnbull and Mr Brown weren't involved, US Studies Centre CEO Simon Jackman said. He declined to respond to criticism of the centre's work.

The New York-based American Australian Association, which promotes business ties between the countries, is overseen by a group of Australian businessmen who established high-level careers in the US. They include Rupert Murdoch, former Ford CEO Jacques Nasser, former Philip Morris CEO Geoff Bible, News Corp CEO Robert Thomson, former World Bank president James Wolfensohn, Dow Chemical chairman Andrew Liveris, Westfield co-CEO Peter Lowy and golfer Greg Norman.

News Corp dining room

The structure of the US Studies Centre was decided in the dining room on the third floor of the headquarters of News Corp in New York City in 2006. Prime minister John Howard promised $25 million start-up capital.

News Corp co-chairman Lachlan Murdoch is a member of the US Studies Centre's advisory council. His company owns about 60 per cent of Australia's newspapers measured by circulation.

Prime Minister John Howard gave $25m to get the US Studies Centre set up. AAP

The latest $12 million will be provided by the Department of Foreign Affairs and Trade, the Department of Defence, the Department of Education and Training, and the Department of Industry, Innovation and Science.

Foreign Minister Julie Bishop and Defence Minister Marise Payne are currently in California for two days of meetings with thier US counterparts.

Aaron Patrick is the senior correspondent. He writes about politics and business from the Sydney newsroom. Email Aaron at apatrick@afr.com

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