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Are there consequences for the Pacific from the Ukraine invasion?

By Jeffrey Wall - posted Friday, 4 March 2022


And in return for the SI signing up to Belt and Road China has promised to "grow" the SI tourism industry - with up to 190,000 PRC tourists a year! This nonsense just demonstrates an over the top and unrealistic approach to a small island nation's economy. It is clearly a case of over-promise with no intention of delivering.

The extent of China's influence in the SI is surely evident thanks to the placement of PRC police in the Solomon Islands to undertake "training". It might only be six today, but it will be sixty plus soon!

Today China takes 90 per cent of the SI's main export commodity - timber. It also dominates the fisheries sector.

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No matter what Australia does to help the SI, it is a waste of time and money, while the current SI Government is in office.

The same can be said for Tonga, an even smaller island nation which is heavily indebted to the PRC. It has sought loan relief from the PRC - with no success.

The PRC simply runs up debt agreements regardless of the capacity of county's to repay them. It is also what has happened in Sir Lanka and an increasing number of African countries.

If a B and R recipient cannot repay loans, China looks at taking over assets as it has already done with a major port in Sir Lanka.

If Tonga cannot meet its loan obligations, the PRC will look at what assets it can take over.

The same will apply to the PNG electricity sector - which would give China an enormous strategic advantage right on our northern border.

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The complex loan arrangements China has with national governments and state owned entities - especially in PNG - means that the most strategically important infrastructure in PNG is beholden to China.

To untangle that would cost PNG at least K8 to K10 billion. Only a massive structural adjustment with Australia, the IMF and the World Bank could rectify that

These instances alone explain why China does not have to focus on actually colonising any South Pacific country. The sad truth is that they effectively control most already!

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About the Author

Jeffrey Wall CSM CBE is a Brisbane Political Consultant and has served as Advisor to the PNG Foreign Minister, Sir Rabbie Namaliu – Prime Minister 1988-1992 and Speaker 1994-1997.

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Creative Commons LicenseThis work is licensed under a Creative Commons License.

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