PNG agrees to police presence

PAPUA New Guinea has bowed to pressure from Australia and agreed to a bold plan to accept at least 200 federal police to restore law and order in the troubled nation.

With both countries hailing the plan as the dawn of a new era of co-operation, the Australian Federal Police officers, supplemented by state police, could be on the ground in Port Moresby and other troublespots by January.

The deal struck between Foreign Minister Alexander Downer and his PNG counterpart, Rabbie Namaliu, in Port Moresby yesterday follows a month-long slanging match, with PNG repeatedly accusing Australia of breaching its sovereignty.

Australia's more aggressive policy is part of John Howard's plan to shore up states in the Pacific which, through corruption and economic mismanagement, are at risk of exploitation by terrorists.

PNG Prime Minister Michael Somare was one of the harshest critics of the policy, but in a separate meeting with Mr Downer yesterday the two agreed to bury the hatchet. Sir Michael is believed to have been angered by what he sees as Australia's heavy-handed approach to Pacific politics, including Mr Howard's insistence that Australian diplomat Greg Irwin be appointed to head the Pacific Islands Forum.

He was also understood to be furious that news of Australia's plans to reform PNG was revealed in the media before his Government was informed.

Sir Rabbie denied there had been any about-face by PNG, saying that what had been agreed was within the spirit of the robust relationship.

The plan - which also includes sending in flying squads of administrators and public sector specialists to shore up economic management, fight corruption and reduce the size of the PNG defence force - is expected to be finalised by the ministers in Adelaide on December 11.

"There was a perception out there that the proposal to insert Australian officials into some of these positions would be done ... on the basis that Australia would be offering them to us without our input and without consultation," Sir Rabbie said. "But this wasn't a package that they were about to shove down our throats; it was a package that was subject to discussions."

Mr Downer said it was a "complete myth" that Australia wanted to do something in "defiance of the PNG Government".

But sources close to the PNG Government said yesterday divisions continued to linger over Australia's new more aggressive approach.