Australian troops were sent to calm tensions in East Timor
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Australia is to increase the size of its army to deal with increasing regional security issues, Prime Minister John Howard has said.
The 25,000-strong force will be expanded by 2,600 troops, in addition to 1,500 already announced last year.
Mr Howard said Australia faced destabilised states in its region, like East Timor and the Solomon Islands.
He also said Australia would continue to play a part in international action, such as in Iraq and Afghanistan.
Mr Howard announced the plan to reporters on Thursday afternoon, saying it was a "very significant boost to the Australian army and one that I think is needed, fully justified and will be widely supported by the Australian people".
At a cost of A$10bn (US$7.6bn), two new battalions will be formed, one mechanised and the other light infantry.
Mr Howard said a bigger army would help ensure the nation could meet its international commitments.
"Our likely responsibilities include, from time to time, being involved in operations like Afghanistan and Iraq, but very particularly our responsibilities in our region, where we will carry the major share of the burden," he said.
"I believe in the next 10 to 20 years, Australia will face a number of situations the equivalent of, or potentially more challenging than, the Solomon Islands and East Timor," Mr Howard added.
In May this year, Australia sent 1,800 troops to East Timor, to help quell the violence there. It also has troops in the volatile Solomon Islands.
Further afield, the country sent 1,300 military personnel to Iraq during the conflict there, and has contributed to the peacekeeping force in Afghanistan.