TNAG-2917-FCO40-4192-International-support-from-Australasia-regarding-the-future--1993 — Page 91

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(b)

(c)

(a)

(e)

28.

(a)

(b)

(c)

(d)

흐

(e)

29.

International interest declining: Australia was the major patron and aid donor.

Britain's role in the Pacific was appreciated: Australia hoped Britain would continue to be an active player, in particular through the SPC.

Australia hoped Britain would join SPNFZ arrangement: US position was under review.

Nauru: Australia was prepared to seek an out-of-court

settlement but might seek a British contribution. Australia's counter-memorial was filed with the ICJ: strength of Australia's case might be a surprise to Nauru. Any out-of-court settlement figure would be way below Nauruan expectations.

The British side made the following points:

Britain had many historical and current interests in the region: wanted to stay in touch. Hoped Mr Goodlad, when visiting, could have a substantive meeting with Mr Bilney.

Valued Australia's contribution to the South Pacific.

Shared Australian reservations about SPC effectiveness: results remained discouraging. Britain's SPC involvement flowed from responsibility for Pitcairn. Financial pressures were considerable. Activity in the South Pacific might have to be curtailed but no drastic shift anticipated. involvement in the area was increasing.

EC

No movement over SPNFZ likely: British side would confixa its position.

Nauru: HBMG studving its position: wanted to stay in touch. We had been approached by the Japanese over a Nauruan request to them for compensation.

Mr Smith said that the level of Japanese aid to the South Pacific was appreciable and welcome: there was little input from other regional players. Taiwan and the PRC played their own game in the region: not necessarily constructive and healthy.

Papua New Guinea

30. The DFAT team made the following points:

(a)

(b)

Concerned about the wingti Government's aggressive re-negotiation of major mining contracts.

Law and order situation worrying: cumulative disincentives to new investment.

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