Australia will seek to ratify a landmark security and economic treaty with its tiny neighbour Nauru by next month, Australian officials said on Monday, amid concern a AU$1 billion (US$648.85 million) Chinese investment proposal could breach its provisions.
Nauru, with a population of 12,000, announced an investment deal with the little-known China Rural Revitalisation and Development Corporation earlier this month.
The leaders of Nauru and Australia announced a treaty in December in which Australia pledged AU$100 million in budget support and AU$40 million for security, and gained a veto over Chinese involvement in critical areas including Nauru's security, banking, and telecommunications.
The treaty has been ratified by Nauru, but not Australia, because its parliament was dissolved for months for a national election.
"It's important that we move forward and ratify as quickly as possible," Mark Tattersall, an official with the Department of Foreign Affairs and Trade, told an Australian parliament committee examining the treaty on Monday.
An earlier press release from Nauru's government said the Chinese company would develop the renewable energy, phosphate industry, fisheries, water, agriculture, transportation and health sectors.
Australian diplomats had asked China and Nauru about the deal because of concern it could trigger provisions in Australia's security treaty, Tattersall said.
Nauru replied saying the Chinese investment had not yet been considered by Nauru's cabinet, he said.
"We have heard the details of the arrangement - it does appear as though actual implementation of any further investment in Nauru is potentially some time off," he added.
Australia has said it wants to announce the ratification of the Nauru treaty at a meeting of Pacific Island leaders next month, which China will not attend.
Australian concern about Beijing's ambitions in the Pacific Islands grew after the Solomon Islands signed a security deal with China in 2022, and China test-fired an intercontinental ballistic missile with a dummy warhead into the Pacific last year.
China has said its presence in the Pacific is focused on building infrastructure to improve people's lives.
(Reporting by Kirsty Needham in Sydney; Editing by Kate Mayberry)