I thought sending Simon Birmingham over with a plate of lamingtons would be a welcoming gesture on our part.

A "Chinese company" has proposed the building of a multi-billion-dollar city on the Papua New Guinean island of Daru, 200km from Australia, New Daru City will cover a 100 sq Km area. The city will include an industrial zone, seaport, business and commercial zone, along with a resort and residential area to start, what can we expect in the future? According to the company PNG will grant an agreed Sovereign Guarantee based on a long-term BOT [Build Operate Transfer] contract". According to a PNG government spokesperson; "If a foreign investor wants to come to PNG with multi-million kina investments, PNG will not stop them ... on the condition our legal laws are complied with and local Papua New Guineans benefit."

My concern would firstly be PNG relinquishing sovereignty of Daru to the Chinese for an agreed period, the Chinese are likely to find reasons not to return the island in the future. For Australia, the consequences can be most serious, having a somewhat unfriendly power positioned on our doorstep. China is unlikely to stop at PNG, Indonesia and the Pacific Island nations are also likely future targets. Should China fail to comply with those PNG "legal laws", what should PNG do....declare war!

BTW Not sure where Old Daru City is, but if any of the inhabitants kick up a fuss about the building of New Daru City, the Chinese will soon shut them up.

In order to pre-empt Mopie's dainty wisdom.

A $multi-Billion Chinese city in Daru would match the $multi-Billion 99 year Chinese lease of Darwin Port nicely.

Bring-on:

- China's Darwin-Daru (D-D) airlines

- D-D shipping lines

- China's right via Daru right to prime Australian fishing rights

- a D-D undersea gas pipeline, and

- a D-D undersea communications cable.

Who said D-D worthies can't be bought?!

I bet that mob that wanted to build the PNG-Australia gas pipe line several years back will now be glad they didn't !

I seem to recall that some years back Daru was described as the most violent place on Earth !

@indi

You speakum truth. Chinese newchums in Daru will need to send a fair wad of cash to its police force to quell high rates of crime.

Australia's DFAT Travel Advisory for PNG is http://www.smartraveller.gov.au/destinations/pacific/papua-new-guinea?

"Risk of violent crime and sexual assault in PNG is high. Criminals often use 'bush knives' (machetes) and guns."

Daru stars in:

- http://png.embassy.gov.au/pmsb/553.html and at

- http://www.facebook.com/pngpolicebrutality/posts/daru-policedrinking-alcohol-while-still-on-duty-and-in-full-uniformits-uncertain/2151047245016908/

Not much we can do on our own: we can try to offer PNG a better deal, otherwise we need to ask the Americans to build a large military base on our opposite shore.

Darwin is a very different story - there we must immediately take over and kick out the Chinese.