New treaty blocks foreign security and telecom deals with Nauru while securing Australian financial services and support

Australia has committed $140 million to secure its relationship with Nauru, using a new treaty to block China and other nations from establishing security or telecommunications deals with the Pacific island. In exchange for the financial support, Australia will also provide banking services through the Commonwealth Bank, addressing concerns about a Chinese state-owned bank gaining financial influence in Nauru.

The treaty, described by Australian Prime Minister Anthony Albanese as a “historic moment,” aims to solidify Australia’s position as Nauru’s primary security partner after the island’s unexpected diplomatic shift earlier this year, when it switched recognition from Taiwan to China. The pact has been seen as a crucial step in ensuring the island nation remains within Australia’s sphere of influence amid growing Chinese interest in the region.

Prime Minister Albanese and Nauruan President David Adeang announced the deal in Canberra, with both leaders praising the agreement for its potential to enhance regional security and resilience. “This treaty will make our region stronger and safer,” said Albanese. Adeang echoed this sentiment, describing the treaty as a “historic milestone” for Nauru, which is one of the world’s most vulnerable nations according to the United Nations.

The deal comes at a time when Nauru is facing heightened pressure from China, with the Speaker of Nauru’s Parliament, Marcus Stephen, visiting Beijing for meetings on security and economic cooperation. However, Australia’s new treaty is designed to prevent any such arrangements with foreign powers.

This agreement follows Australian efforts to counter China’s growing influence in the Pacific, as seen in other recent commitments, including a deal with Papua New Guinea worth $600 million over 10 years to involve the country in the National Rugby League