The coastline of Anibare Bay at Anibare, Nauru. Photo: DFAT/LSIS Matthew Lyall
Nauru has agreed to give Australia effective veto over its security pact under a new treaty signed today.
The treaty was signed by Australian PM Anthony Albanese and Nauru President David Adeang.
And the Commonwealth Bank is to provide banking services to the Pacific Island state under the new deal.
Albanese says $40m will be spent on Nauru’s policing and security needs including Australian support for police and broader national security, capital infrastructure, training, equipment, recruitment and retention.
In exchange, mutual approval will be required for third-party involvement in Nauru’s security and infrastructure sectors, the PM says.
“ …. Both countries will mutually agree on any engagement by others in Nauru’s security and key critical infrastructure sectors and have agreed that critical infrastructure shall not be used by any third party for security purposes,” he says.
Article five of the treaty states that Nauru will consult with Australia before signing a third party deal with another state or company on infrastructure like ports, airports and energy networks.
The treaty was signed in the face of China’s growing influence in the Pacific region.
FLASHBACK: Nauru switches diplomatic recognition from Taiwan to China
Under the treaty, Australia will also provide $100 million over five years for Nauruan education, health and social services.
“Through the treaty, we will ensure Nauru does not risk being de-banked again which is a fundamental threat to its economic security and access to banking services,” Albanese says.
The Commonwealth Bank will start operating in Nauru in 2025 replacing the Bendigo and Adelaide banks.
Nauru is a small Island state that faces continual, and significant, economic challenges due to limited natural resources, geographic isolation, narrow economic base and a small maritime exclusive economic zone.
The Australian government says these vulnerabilities, compounded by de-banking and climate change, demand urgent, collaborative action to build resilience and sustainable growth.
Work is under way to implement the treaty as soon as possible in 2025.
