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Australia defends handling of China-Solomons deal; makes tax pledge ahead of polls

Australia defends handling of China-Solomons deal; makes tax pledge ahead of polls

File photo. Children fish at a beach in central Honiara, the capital of the Solomon Islands, on Sep14, 2012. (Photo: Reuters/Daniel Munoz)

SYDNEY: Australia's government on Sunday (Apr 24) defended its response to China's courtship of nearby Solomon Islands which culminated in a security pact, ahead of a general election next month where it had hoped to highlight its national security credentials.

Defence Minister Peter Dutton in a television interview attributed China's success to an uneven playing field involving tactics with which no Australian government could compete.

The pact, announced earlier this month, is seen as a major inroad for China in the resource-rich Pacific, where the United States has long been the dominant influence along with allies Australia and New Zealand.

China has said the pact will help the Solomon Islands maintain social order and cope with natural disasters and humanitarian relief. It said it poses no risk to the US, while the Solomon Islands said it will not undermine regional peace.

Still, the US has said it would respond accordingly to any Chinese military presence in the region, while critics of Prime Minister Scott Morrison have called the pact Australia's biggest diplomatic failure in the Pacific since World War Two.

Dutton, in an interview with Sky News, said the pact follows a pattern of China's engagement around the world.

"If you look at what's happened in Africa, there are corrupt payments being made - we could never compete with that sort of playbook," Dutton said, without providing evidence.

He said he could not comment on whether corrupt payments had been made in the Solomons case.

"China's incredibly aggressive - the acts of foreign interference, the preparedness to pay bribes to get outcomes, and to beat other countries to deals - that's the reality of the modern China."

The Chinese embassy in Canberra did not respond to requests for comment outside business hours.

Morrison on Sunday looked to deflect criticism by shifting the debate to his economic policy, as he promised to not introduce any taxes if re-elected, and to cap government tax revenue at 23.9 per cent of gross domestic product.

The policy also involves giving workers A$100 billion (US$72.4 billion) in tax relief over the next four years.

Australians head to the polls on May 21.

Source: Reuters/aj


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