War with Iraq will signal the beginning of a new era in American national security policy and alter strategic balances and relationships around the world. The specific effects of the war, though, will vary from region to region. In some, America's position will be strengthened. In others, it may degrade without serious and sustained efforts. To assess this dynamic, the Strategic Studies Institute (SSI) has developed a special series of monographs entitled Strategic Effects of the Conflict with Iraq. In each, the author has been asked to analyze four issues: the position that key states in their region are taking on U.S. military action against Iraq; the role of America in the region after the war with Iraq; the nature of security partnerships in the region after the war with Iraq; and the effect that war with Iraq will have on the war on terrorism in the region. This study considers the strategic consequences of U.S. and allied military action against Iraq for the countries of Australia and New Zealand and provides some policy recommendations. The prospect of imminent U.S. military action against Iraq is of enormous interest to both Australia and New Zealand.