AUSTRALIA will seek to ratify a landmark security and economic treaty with Nauru by next month amid concerns that a $USD648 million Chinese investment proposal could breach its provisions.
Earlier this month, Nauru announced an investment deal with China Rural Revitalisation and Development Corp.
In December, Australia pledged $USD64.81 million in budget support and $USD25.92 million for security and gained a veto over Chinese involvement in critical areas, including Nauru’s security, banking, and telecommunications.
The treaty has been ratified by Nauru, but not Australia, because its parliament was dissolved for months for a national election.
Nauru said the relatively unknown Chinese company would develop the renewable energy, phosphate industry, fisheries, water, agriculture, transportation, and health sectors.
Australian diplomats had asked China and Nauru about the deal because of concern it could trigger provisions in Australia’s security treaty.