Australia is working to confirm whether Nauru has breached a security treaty following a $1 billion announcement with a Chinese company.
Nauru must receive Australia’s sign-off on any partnership, arrangement or engagement with a third nation when it comes to security, including critical infrastructure such as banking and telecommunications.
Under the treaty, signed in December 2024, Australia would prop up Nauru’s banking sector, provide $100 million in budget support and $40 million for policing in exchange for an effective veto right over other security agreements.

Pacific Minister Pat Conroy said the Australian government was working with Nauru to determine whether a development deal with the China Rural Revitalisation and Development Corporation, signed on August 5, activated treaty obligations.
“That is a really important treaty for us, that helps position us as a security partner of choice with Nauru,” Mr Conroy said in Brisbane on Tuesday.
The first part of the three-phase deal with the Chinese corporation covers renewable energy, the phosphate industry, marine fisheries and sea infrastructure.
Mr Conroy said Australia wasn’t opposed to development and economic assistance from other nations in the Pacific.
“We think other countries should be doing their fair share and investing in the Pacific. That’s a good thing for the region,” he said.
“What we’ve been very clear is that every country in the world should respect the views of the Pacific Islands Forum, the leaders’ consensus, which is that security should be provided by countries within the PIF.”
Mr Conroy has stated China should play no security role in the Pacific.

The jostling for influence between China and traditional partners like Australia in the Pacific has also been on display ahead of the Pacific Islands Forum leaders meeting in the Solomon Islands in September.
Prime Minister Jeremiah Manele has banned all development partners from attending after pressure from China to exclude Taiwan from the forum.
The push to exclude Taiwan, which Beijing claims is part of its territory, split Pacific leaders, some of which still recognise Taiwan over China.
Some forum nations and development partners have expressed that any attendance of Chinese officials at forum events is a red line.
It followed an incident at the 2024 leaders meeting in Tonga where the leaders’ communique was altered after China’s Pacific envoy expressed anger at a provision referencing Taiwan.
Mr Conroy said the decision to exclude dialogue partners by the Solomon Islands was “unfortunate”.
“We think that every dialogue partner should have been invited to the PIF … whether that’s China, Taiwan, the United States, United Kingdom, whoever, you name it,” he said.
“We think the 1992 status quo, the consensus around dialogue partner engagement should be maintained.”

The invitation of development partners began in 1992 and includes Taiwan.
Australia has been working to shore up its foothold in the Pacific by signing numerous security and defence co-operation treaties, some of which include exclusivity clauses.
The pact with Papua New Guinea precludes any security presence from China.
A defence pact allowing its citizens to serve in the Australian Defence Force is set to be inked at the celebrations for the 50th anniversary of its independence in Port Moresby in September.
But a treaty with Kiribati has been more elusive, with negotiations effectively put on ice by the Maamau government.
Mr Conroy declined to detail the status of the negotiations.
“We’re engaging with all Pacific island nations on their interests and we’ve made it very clear that we’re open to doing deals, negotiating beneficial arrangements for any Pacific nation that is interested in talking to us,” he said.
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