Papua New Guinea's prime minister has slapped down Australian plans, announced in the Budget, to open a new diplomatic post in his country.
Speaking during an address to the Lowy Institute in Sydney, Peter O'Neill says he wasn't consulted.
But Mr O'Neill also praised Australia's role in the Pacific and says he understands the need for a cut in development aid.
Queensland correposndent Stefan Armbruster spoke to Sacha Payne about the speech.
(Click on the audio tab above to hear the full interview)
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