The Prime Ministers of Australia and the Solomon Islands have defended the $200 million bill for a communications cable linking Papua New Guinea, the Solomon Islands and Australia which was originally going to be built by Chinese company Huawei.
The shadow of China’s strategic interests, including reports of a Chinese-backed airport in the Solomons, loomed over discussions between the two leaders as they met in Canberra on Wednesday.
Prime Minister Rick Houenipwela is making his first official visit to Australia and is looking to cement a deal to build the underwater cable.
"From our perspective, this is the best one," Mr Houenipwela told an audience at the Australian National University.
“I think what it's going to do is increase connection, efficiency and, as I said, lower costs.”
Prime Minister Malcolm Turnbull also said it was logical for Australia to build the cable.
“Our concern is ensuring that Australian aid provides the support for economic, social development in the Pacific and that's why we're providing the building of this cable,” Mr Turnbull told reporters in Parliament House on Wednesday.
Mr Turnbull defended the cost of the project and that money for it was coming out of Australia’s aid budget.
“I think this will rank very highly as a very, very practical piece of vital telecommunications infrastructure supporting economic development and all of the economic progress that Prime Minister Houenipwela and his country are committed to," he said.
Malcolm Turnbull and Solomons leader Rick Houenipwela shake hands Source: AAP
But Mr Houenipwela scoffed at reports Chinese investors were looking to build an airport on the main island of Guadalcanal.
The reports in The Australian newspaper last month put the spotlight on China’s strategic interests in the Pacific.
“I don’t know where that airport is because we haven’t spoken with anyone. No one has spoken with us about it,” Mr Houenipwela said.
“There are no Chinese SOE [state-owned enterprises] investments in the Solomon Islands that I’m aware of.”
But Mr Houenipwela said his country was within its rights to pursue links with other countries, including China and Taiwan.
“We have trade relations with China just like any other country, most of whom are actually Australian-Chinese,” he said.
“We [also] maintain diplomatic ties with Taiwan and the present government is not going to change that.”
