Yeah Australia has an arms industry, mostly to support the Australian Defence Forces. We manufacture our own rifles under licence, manufacture ammo in a variety of calibres, we have an advanced (although admittedly small) naval shipbuilding industry. We have our own oil and gas and huge coal reserves. We'd do okay I think.
There are a number of US intelligence bases in Australia. I don't really have an issue with it. Its not like there are huge numbers of US troops here and the US shares some of the intel it gathers through their bases here with us. I think as the decades go by the US trusts Australia more and more. At least they know we are reliable and won't back down from a fight.
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 "It is better to be feared than loved" - Nicolo Machiavelli
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