CANBERRA, Australia 鈥� The Australian prime minister on Monday dismissed as 鈥渟peculative鈥� reports that a Chinese company plans to build a new industrial island city near Australia鈥檚 porous sea border with Papua New Guinea.
Hong Kong-registered WYW Holding Ltd. plans to build a $30 billion city that includes a seaport and industrial area on Daru Island in the Torres Strait, Australian media have reported. The reports cite company letters to the Papua New Guinea government from April last year.
Daru Island is a population of 20,000 people within 5
Prime Minister Scott Morrison played down the prospect of the city being built.
鈥淚 honestly think it鈥檚 just speculative,鈥� Morrison told Sydney Radio 2SM. 鈥淚t鈥檚 just people flying some kites and I鈥檓 not going to overreact to the noise that is flying around out there.鈥�
鈥淚 speak pretty regularly with the Prime Minister of Papua New Guinea (James Marape) and we have a very good relationship and he well understands our relationship and the importance of our other partners and I couldn鈥檛 see Papua New Guinea being terribly hasty on anything like that,鈥� Morrison added.
Marape鈥檚 office said the prime minister wasn鈥檛 aware of the proposal, but added that his government would not turn away foreign investment that complied with Papua New Guinea laws and benefited locals.
Analysts have said the proposal makes no economic sense and some suspect China wants to build a wharf for use by its navy.
The Unites States and Australia are partnering to redevelop Papua New Guinea鈥檚 Lombrum Naval Base on Manus Island in the country鈥檚 north as concerns rise about China鈥檚 growing influence in the region.
In November last year, Papua New Guinea signed a memorandum of understanding with Chinese firm Fujian Zhonghong Fishery Company to build a $160 million fish processing plant also on Daru.
Home Affairs Minister Peter Dutton said the government was 鈥渧ery keen鈥� to discuss with Papua New Guinea 鈥渨hat proposals are on the table.鈥�
鈥淚 think there are all sorts of sovereignty issues and there are local issues in terms of land owners and land rights, et cetera that I think would provide a significant hurdle,鈥� Dutton told Nine Network television on Friday.
鈥淪o, we鈥檒l look at it closely, but Australia will always act in our best interests and ... to support our
Papua New Guinea is the largest recipient of Australian foreign aid. Papuan vessels can operate in a shared fishing zone between the two
Rod McGuirk, The Associated Press
