In a significant development, Australia has secured a multimillion-dollar agreement with Nauru, granting it veto rights over Nauru’s proposed pacts with third countries, including China. Announced on Monday, this agreement aligns with Australia’s strategic interests in the Pacific region.
Australia is set to provide 140 million Australian dollars, equivalent to 89 million US dollars, over the next five years to Nauru’s 12,000 residents. As part of the treaty to be implemented next year, funds will include 40 million Australian dollars to bolster policing and security.
Australian Prime Minister Anthony Albanese emphasized the mutual security benefits of the treaty, stating it ensures shared agreement on Nauru’s engagements in critical sectors such as security, banking, and telecommunications. Nauru President David Adeang highlighted the importance of this partnership with Australia, referring to it as “vital” for Nauru.
This agreement mirrors a similar deal with Tuvalu earlier this year, where Australia obtained veto rights on third-country agreements following concerns about China’s growing influence in the South Pacific, marked by its security pact with the Solomon Islands in 2022.
Meg Keen from the Lowy Institute pointed out that Nauru’s concessions on its autonomy in security, banking, and infrastructure dealings with China and others came with a significant increase in Australian financial support. She described the treaty as a strategic move by Australia to limit Chinese influence and solidify its role as a preferred partner in the region.
An essential element of the deal is Nauru retaining an Australian bank, with the Commonwealth Bank of Australia planning to open a branch next year, replacing Bendigo Bank. This move addresses issues such as debanking, fostering economic growth, and ensuring Nauru’s resilience.
President Adeang stated that the treaty not only bolsters the nation’s economy but also addresses critical security challenges, noting its role in promoting inclusive growth for its people.
Australia’s agreement with Nauru reflects its ongoing strategy to strengthen regional ties and counterbalance China’s presence in the Pacific. The financial aid and security assurances provided under this treaty highlight Australia’s commitment to supporting its Pacific neighbors while safeguarding its interests.
Source: Apnews
