Australia and Nauru have entered into a significant multimillion-dollar agreement that grants Australia a veto right over various agreements Nauru may seek with third countries, including China. The deal, announced on Monday, involves Australia providing 140 million Australian dollars ($89 million) over five years to Nauru, a remote Pacific atoll with a population of 12,000.
Part of the funding includes 40 million Australian dollars ($26 million) allocated for bolstering policing and security measures in Nauru. Australian Prime Minister Anthony Albanese emphasized the importance of mutual security, stating that both countries must jointly agree on any foreign engagement in Nauru's security, banking, and telecommunications sectors.
Nauru's President David Adeang echoed the sentiment, highlighting the vital nature of the partnership with Australia, its former colonial ruler. This agreement bears similarities to a previous deal struck with Tuvalu, another small Pacific island nation, which also granted Australia veto power over third-party agreements.
The context for these agreements stems from concerns raised after a security pact between China and the Solomon Islands in 2022, which sparked fears of a potential Chinese naval base in the South Pacific. As part of the deal, Nauru will maintain an Australian bank presence, with the Commonwealth Bank of Australia set to open a branch in Nauru next year following the withdrawal of Australia's Bendigo Bank.
President Adeang emphasized that the treaty not only strengthens Nauru's economy but also enhances mutual security and addresses critical challenges such as debanking, ensuring inclusive growth, and building resilience for the Nauruan people. The agreement signifies a strategic alignment between the two nations in safeguarding regional interests and fostering economic stability in the Pacific.
