http://news.bbc.co.uk/1/hi/world/asia-pacific/6220786.stm

- I think it's a positive new role for Australia. Well, new in the sense of actively promoting and achieving a more intervensionist role in world affairs. Because of course Australia has been sending troops abroad since the Boer War, and its contribution to both world wars, for its population, was incredible, topped only by New Zealand.
But such a boost to its Navy would mean that it could fullfill its role in the Pacific far better, which I think is having a positive impact, or could definately lead to one.

Not sure why Thailand would be so jittery, though. It's hardly like they have political interests in East Timor, ie.

Thailand is likely nervous due to the fact that they run one of the world's most oppressive military regims.
Then on the other hand, the way the thais work, it's not exactly unsupported by the local populace, and perhaps more importantly: Europe would probably never tolerate interruptions to their number one target for international tourism :)

Thailand is nervous because it is on tense terms with Malaysia who may or may not be supporting the islamic insurgency in the south of Thailand. If Australia builds up, Indonesia/Malaysia will feel the need to build up and therefore Thailand will also feel pressure to build up. It is a chain reaction effect. Of course, with China expanding, it is a foregone conclusion anyway. Half the countries in the area are claiming the gas-rich Spratley islands (including China), so the impetous for an arms race is already there.

I notice lots of countries are arming up lately. Syria just bought a bunch of MiG 31's from Russia and Venezuela is negotiating with Russia to buy 9 big diesel subs. Lots of money in the arms trade these days.