Lieutenant General Peter Leahy hailed a looming engagement in the conflict-riven Solomon Islands as an example of the defence work at which Australia had excelled in the past and for which it would be increasingly needed in the future.

"As we deliberate over a possible intervention in the Solomon Islands, there are many failed and failing states around the world who need our help and support," he told a conference of ex-servicemen in Melbourne.

"We've learned a lot over the past decade -- I'd like to think we are available to offer good options to government, whatever they want us to do."

The contingent being sent to the Solomons to spearhead a 2,000-strong regional force of police and soldiers will be Australia's fourth overseas military intervention in as many years -- after East Timor, Afghanistan and Iraq.

But it will not be the last, Prime Minister John Howard made clear in a speech here late Tuesday in which he signalled his readiness to commit troops to further "coalitions of the willing".

He also repudiated critics of his government's muscular strategic approach, claiming "an immense moral and humanitarian dividend" from participation in the US-led war in Iraq.

He said Australia was now enjoying "unparalleled world respect" for its willingness to take a stand.

While globalisation had created opportunities for international terrorists, isolation would do nothing to deliver security and prosperity, he said.

He put the fight against terrorism at the heart of Australia's foreign policy and warned that security depended on its ability to work with other nations to take action against terrorists and rogue states.

"In the age of terrorism, retreat and isolation will not deliver security and prosperity," Howard said.

Leahy said Australian soldiers had wide experience of varying levels of hostilities in places like Rwanda, Somalia, Bougainville and East Timor, as well as recent armed incursions into Afghanistan and Iraq.

Australian soldiers were equipped for a diversity of missions, and resources would not be a problem should wider international intervention be required, he said.

While in past conflicts Australian soldiers had been poorly equipped and were forced to become "vagabonds and scavengers", that had changed, he said.

WAR.WIRE