AUSTRALIANS working in Papua New Guinea will have to abide by local laws or face prosecution under a new agreement hammered out between the two countries.
Foreign Minister Alexander Downer and his PNG counterpart Sir Rabbie Namaliu reached the agreement during talks about a plan to send Australian police, lawyers and public servants to PNG.
The plan is part of an $800 million aid program aimed at cleaning up the local police force and improving the efficiency of the bureaucracy and the courts.
But PNG has delayed the plan from being put into action by refusing to grant legal immunity to Australian Federal Police officers to protect them from malicious prosecutions.
In an attempt to break the deadlock, Mr Downer yesterday offered to have Australia prosecute any of its police who break laws in Papua New Guinea.
The move led to both parties reaching a broad agreement on the plan.
"We have reached a broad agreement on the revised draft," Mr Namaliu told ABC radio.
"We've clarified a number of issues that we needed to clarify, they're now at least in the question of constitutional issues that I've been expressing concern about, I can say that's now been resolved."
Mr Downer said a joint consultative committee would be set up to consider cases where immunity may need to apply.
"It's important that the people of Papua New Guinea don't think that Australians are going to come here and be able to behave outside the law of Papua New Guinea," he told ABC radio.
"That's not the proposal.
"The proposal is that Australians in Papua New Guinea, as is the case with all Australians who are living in Papua New Guinea whatever their status, be they diplomats or be they private sector workers, that they will adhere to the laws of Papua New Guinea, and abide by those laws."
More than 200 police and up to 70 officials are to be deployed to PNG under the $800 million Enhanced Cooperation Program (ECP).
Australian and PNG officials will continue talks about the program next week.
The plan will then be put to PNG's Cabinet which, if it agrees to the program, a new joint treaty will have to be ratified by PNG's parliament.
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