Australia promises $250m to Solomons in face of China growth

AFP  |  Honiara 

is to fund a $250 million (US$173 million) grants programme for the Solomon Islands, announced Monday, as confronts growing Chinese influence in the region.

It came in a three-pronged initiative with and highlighting Australia's push for economic security in the region.

The grants programme, to cover a range of projects over 10 years, is designed to allow the Solomons to finance urgently-required infrastructure.

Further funds will be used to help access work opportunities in and an initiative to assist with rugby union development in the country.

"and will continue to work closely together to boost our engagement by strengthening community bonds and tackling common challenges," Morrison and Sogavare said in a joint statement.

They added they were committed to "deeper cooperation" on defence and security "to make the Pacific region secure, prosperous, and stable."

Morrison announced last year a multibillion-dollar package for much-needed infrastructure in the Pacific and Australia recently funded a new for the to lock out Chinese

The Solomons is one of a handful of nations that still recognise rather than

But with an economy hampered by declining resources, the impoverished archipelago is being pressured to sever ties with and join up with China's multibillion-dollar Belt and Road Initiative.

Taiwan's Tsai Ing-wen recently urged Australia, the and to join with in a "values-based partnership" to push back against China's growth in the Pacific.

Morrison diplomatically phrased Canberra's intentions as seeking "the peaceful independence and sovereignty of all nations... and to address the many challenges that are present in our region." Meanwhile, Reynolds told the Shangri-La Dialogue security conference in over the weekend that "wants to do our bit to ensure the Pacific region is resilient and it is stable.

"We have a package of initiatives that are far-reaching in scope and also in ambition -- security, economic, diplomatic, development and people-to-people initiatives that build on long and historic relationships and friendships," she said.

Payne headed to on Monday to discuss "deepening our security, economic and people-to-people links".

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, June 03 2019. 12:15 IST