Papua New Guinea's prime minister has condemned Australian plans, announced in the federal Budget, to open a new diplomatic post in his country without consulting his government.
"We were shocked to learn from the budget documents that Australia was planning to establish a diplomatic post in Bougainville. There has been no consultation on this proposal and there is no agreement to proceed".
"We were shocked to learn from the budget documents that Australia was planning to establish a diplomatic post in Bougainville,” he said.
"There has been no consultation on this proposal and there is no agreement to proceed.
"As we respect the territorial integrity of others, we expect others to respect ours as well."
Mr O'Neill, who was speaking at the Lowy Institute, said he has had no communications from Foreign Minister Julie Bishop about the mission.
“The Foreign Minister discussed her proposal to open a secondary post in PNG with the PNG Government during her visit in December 2014,” Ms Bishop office said in a statement afterwards.
“Australia’s High Commissioner also formally advised the PNG Government of the intention to announce a diplomatic presence in Buka, in consultation with the PNG Government, in the lead up to the 2015 Budget,” she said.
PNG's Foreign Minister, Rimbink Pato, described the plan as "outrageous" and has summoned the Australian High Commissioner Deborah Stokes to explain "the media accounts of this mischievous proposal."
Mr Pato said while PNG welcomes foreign aid and personnel in supporting the nation's development efforts, some aspects of the peace-building dialogue between PNG officials and their foreign counterparts are seriously inadequate and need immediate review.
That out of the way, Mr O'Neill praised Australia's role in the region and the Pacific Forum.
The Autonomous Government of Bougainville is currently holding elections and a referendum on independence is due by 2020.
“We are all aware of ongoing background discussion relating to membership to the Pacific Islands’ Forum,” he said.
“As far as Papua New Guinea is concerned there will is no requirement for a change in the structure of the membership.”
That sets up a possible showdown with Fiji's prime minister Voreqe Bainimarama, who wants Australia and New Zealand thrown out of the Forum.
“No, we are not picking a fight,” Mr O'Neill told SBS World News after his speech.
On asylum seekers in the Manus Island detention centre, he said 400 had already been repatriated “voluntarily”.
He told SBS that 129 recognised refugees would be resettled in PNG by December but blamed Australia for the delay.
“There has been criticism at the time taken to transition refugees from Manus to their new lives is taking too long,” he said.
“There has been so much negative news about the asylum seekers in Australia, which is then rebroadcast in Papua New Guinea, that there is concern about refugees coming to live in our communities.
“We have an obligation to explain this to Papua New Guineans, and to the refugees, as they make this transition so the can be included in our communities.”
“Our bilateral relationship with Australia is in very good shape, probably in better shape and more harmonious than at any time since independence”.
Mr O’Neill said a five per cent federal Budget cut of development aid funds was expected.
“We do understand the budgetary constraints faced by Australia, and we will sit down and work with the Australian Government to reprioritise the development program,” he said.
Despite the aid cut and criticism over the diplomatic post, Mr O’Neill said the outlook for the neighbours is the best in 40 years.
“Our bilateral relationship with Australia is in very good shape, probably in better shape and more harmonious than at any time since independence,” he said.
PNG is the largest recipient of Australian aid following the federal budget, receiving $477.4 million.
- With AAP
