Call to lobby China

WELLINGTON: Tonga’s prime minister has called for Pacific nations to lobby China to drop their debts.

The rate of infrastructure loans being given to small Pacific countries by China and issues with repayments have been a growing concern for powers in the region, including Australia and New Zealand.

Tonga is among the countries struggling with repayments and is believed to have an outstanding debt of about $US160 million ($NZ244 million) compared with its 2017 GDP of $US430 million.

Its prime minister, Akalisi Pohiva, told the Samoa Observer the country would soon start repaying loans — two years late — after having requests for a reprieve rebuffed by Beijing.

He has called for the Pacific Islands Forum, whose leaders meet next month, to make the issue a priority.

‘‘All the Pacific Island countries should sign this submission asking the Chinese Government to forgive their debts and to me that is the only way we can all move forward, if we just can’t pay off our debts,’’ he told The Observer.

Mr Pohiva said he feared China would begin seizing collateral assets, such as government buildings, in the event of a default.

There are longheld international concerns China is ‘‘on the march’’ in the region by bankrolling projects including ports, roads and loans to small island nations.

Observers fear some countries could end up ceding their sovereignty.

The Lowy Institute’s Pacific aid map last week showed Australia was still the largest donor to developing nations in the region, but that China was catching up fast.

New Zealand’s new Government has massively increased its aid spending to the Pacific this year and called for Australia to join it in ramping up efforts in what it says is an increasingly ‘‘congested strategic space’’.