Page 34 - IB July 2018

Business Intelligence - PACIFIC

Australia, Solomon Islands,

PNG sign undersea cable deal

By Pacnews

THE leaders of Australia, Solomon Islands and Papua New
Guinea have marked the start of a project to lay an undersea
internet cable between the three countries amid criticism from
China that Australia is trying to contain its influence in the In June, Australian company Vocus was awarded the $136.6
region. million contract to manage the construction of the 4,000-ki-
Prime Minister Malcolm Turnbull was joined by his PNG lometre cable.
counterpart Peter O’Neill and Rick Houenipwela from Solo- Some observers believe the decision was not only due to
mon Islands in Brisbane early July to witness the signing of security concerns but also to counter China’s growing influence
a memorandum of understanding that paves the way for the in the region, particularly its use of loans and grants to build
project to proceed. infrastructure projects.
Australia is spending nearly $137million (US$100.9m) to The formal start of the cable project comes amid criticism
lay the cable and Turnbull described it as a “very practical way” from within China that Australia is trying to contain Beijing’s
of providing foreign aid. influence in the Pacific.
Back in 2016, the Solomon Islands government signed a deal In an editorial on Monday the state-owned newspaper Global
with Chinese telecommunications giant Huawei to lay a cable Times said “China’s emergence is an irreversible trend and any
to Australia. But the Australian government was concerned attempt to contain the country’s growth runs contrary to the
Huawei would be permitted to plug into Australia’s telecom- trend of the times.”
munications infrastructure. The newspaper was responding to Australian media reports
It believes that while Huawei is an independent company, that Australia and New Zealand would sign a new security
it retains links to the Chinese Government and could pose a pact with Pacific Island nations later in the year to counter the
threat to Australian infrastructure in the future. growing influence of China in the region.
Last year senior government officials told the Solomon The security pact, known as Biketawa Plus, is being consid-
Islands Government that Canberra was unlikely to grant the ered by members of the Pacific Islands Forum and builds on
company a so-called “landing point” for the cable on the Aus- the Biketawa Declaration signed in 2000 that has guided the
tralian mainland. forum’s collective response to crises such as natural disasters
The Australian Government then announced its support for and civil unrest.
the PNG cable and a few months later said it would foot most The Global Times warned it would be a “strategic mistake”
of the bill to lay the cable to Solomon Islands as well. if the new security agreement was aimed at China.

China tells Tonga to pay up loan challenged to maintain influence,” the report read. “China holds
NUKU’ALOFA, TONGA - Tonga this year will start repaying views on human rights and freedom of information that stand
the Chinese loan of more than US$100 million that was taken in contrast to those that prevail in New Zealand.” New Zealand
for recovery and reconstruction after the Nuku’alofa riots of 16 has already announced it would increase foreign aid by nearly
November 2006. Prime Minister Hon ‘Akilisi Pohiva in a press a third in part to counter China’s rising influence in the South
conference on July 11 said the repayment was deferred to this Pacific. “We live in turbulent times, the world is changing and
year, after they asked over the past years. He said government there has been a re-emergence of great power competition,” New
would start repaying the principal loan starting in this year’s Zealand Defence Minister Ron Mark told reporters in Wellington.
budget. “In the meantime, government has paid around $16 Australia is the largest donor of aid to the Pacific, committing
million in interest. Our journey now into future is that we would A$166.4 million (US$129 million) this year. But with a large
keep on asking China to divert this loan into a grant,” he said. budget deficit, its economic aid budget will fall to its lowest level,
The Tongan Government took out the US$119 million loan from opening a door for China, analysts say.
China for the reconstruction of Nuku’alofa after riots and arson
attacks destroyed much of the Central Business District. Temporary workers to get legal aid
Melbourne, Australia - Hundreds of vulnerable migrant workers
New Zealand worries about sChina’s rise in the Pacific on temporary visas in rural Victoria are set to benefit from new
WELLINGTON, New Zealand - A New Zealand government funding for legal aid and workplace rights education. The new
defence report has warned that China’s rising influence in the $580,000 (US$427,000) in funding follows a string of investiga-
South Pacific could undermine stability in the region, comments tions by SBS News and other media outlets into the exploitation
that are likely to stoke bilateral tensions. of temporary workers on farms across the state. The programme
New Zealand and Australia have traditionally been the two will be delivered over two years in conjunction with Victorian
major players in the South Pacific, but the report said New Zealand Legal Aid and other partners in key regional areas such as Shep-
was now losing influence amongst the small island nations to parton and surrounding Geelong. More than 200 temporary visa
China. “New Zealand’s national security remains directly tied to workers in those regions are expected to receive face to face and
the stability of the Pacific. As Pacific Island countries develop.... in-depth employment assistance under the funding, according to
traditional partners such as New Zealand and Australia will be the government. It is expected to help those who encounter a pay,

34 Islands Business, July 2018