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Far North leaders’ concerns over China’s interest in Conflict Islands

Privately-owned PNG islands for sale only 944km from Cairns may end up in the hands of China, who are reportedly bidding. Why FNQ officials are concerned.

FAR North officials are concerned privately owned islands on sale only 1000km from the Australian mainland may end up in the hands of China, who are reportedly bidding.

The Conflict Islands, off of Papua New Guinea, are owned by Aussie businessman Ian Gowrie-Smith who has put them up for sale.

With the 12 atolls around 944km from Cairns, Far North leaders are worried about how this will affect national security.

The privately-owned Conflict Islands are up for sale and have gained interest from China. Picture: Supplied
The privately-owned Conflict Islands are up for sale and have gained interest from China. Picture: Supplied

Retired Lieutenant General John Grey, former chief of the Australian Army, said the islands were in a “strategic location” for China to potentially intercept the trade routes coming out of the Torres Strait, Weipa and PNG.

The significance is really the location in terms of intelligence gathering,” he said.

“Australians would be uncomfortable (if the land went to China) but I don’t think that it’s a threat to our sovereignty.”

Lt Gen (Ret) Grey warned that the government “wouldn’t be wise” to purchase the land from Mr Gowrie-Smith as the islands were situated outside Australia’s sovereignty with the responsibility falling on PNG.

RELATED: China’s security pact with Solomon Islands: What it means for Cairns

“It’s not in the bounds of possibility for the Australian government,” he said.

John Grey, former Lieutenant General and JCU chancellor, said the Conflict Islands were in a strategic location. Picture: Supplied
John Grey, former Lieutenant General and JCU chancellor, said the Conflict Islands were in a strategic location. Picture: Supplied

“As an Australian, (Mr Gowrie-Smith) should be mindful of Australia’s attitude to the Chinese government … and conscious.”

Mr Gowrie-Smith has raised concerns with the Australian government, but with no response from the Foreign Affairs Minister Penny Wong, he said he would reluctantly sell to China.

His agent arranging the sale of the Conflict Islands has sold land to Chinese buyers before and currently has deals with them buying islands.

The Conflict Islands. Picture: Supplied
The Conflict Islands. Picture: Supplied

MP for Leichhardt, Warren Entsch called on the federal government to purchase the freehold land estimated at $US25 million — labelling it a “golden opportunity”.

“It’s a no-brainer to grab the bloody thing,” he said.

“By owning them, you control them … you would not want it to go anywhere else.”

Mr Entsch said he was surprised Mr Gowrie-Smith’s request to government had gone unanswered and believed they should reconsider their position.

Leichhardt MP Warren Entsch urged the federal government to buy the Conflict Islands off Aussie businessman Ian Gowrie-Smith. Picture: Asanka Ratnayake/Getty Images
Leichhardt MP Warren Entsch urged the federal government to buy the Conflict Islands off Aussie businessman Ian Gowrie-Smith. Picture: Asanka Ratnayake/Getty Images

“It’s a problem for all of us here within the proximity,” he said.

“If you chose to, you could (buy and then) lease the island out to somebody to develop a resort.

“There should be negotiations.”

A spokesperson from the Department of Foreign Affairs and Trade said the sale of the islands was not the government’s issue.

“We are aware that the owner, Mr Gowrie-Smith, is seeking to sell the privately-owned Conflict Islands in Papua New Guinea.

“Any such sale would be a private commercial transaction and ultimately it is Mr Gowrie-Smith’s decision to sell, and to whom he sells, under relevant PNG law.”

yashee.sharma@news.com.au

Originally published as Far North leaders’ concerns over China’s interest in Conflict Islands

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Original URL: https://www.couriermail.com.au/news/cairns/far-north-leaders-concerns-over-chinas-interest-in-conflict-islands/news-story/e1b07b2e90784e0ecbfb323a0caff527