Aust move a warning to China?

The tiny Pacific nation of Tuvalu – a series of coral atolls lined with palm trees, beaches and lagoons – has one airport, one hospital and one bank. It covers about 26 square kilometres, making it one of the smallest countries in the world.

But this remote place, accessible by an unreliable thriceweekly air service from Fiji, is about to receive a new set of international residents. In a surprising announcement, Australia revealed this week it is planning to dispatch diplomats to establish a high commission in the capital of Funafuti, joining the island’s only other embassy, Taiwan.

Explaining the decision, Julie Bishop, Australia’s foreign minister, said Tuvalu was ‘‘an important partner in the Pacific’’. But most observers believe the move is motivated by anxiety about China’s growing role in the waters of the South Pacific.

Graeme Smith of the Australian National University said his response to the news was: ‘‘Tuvalu – really?’’

He added: ‘‘It’s as close as you can get to a Pacific paradise – large green cliffs and a pristine place – but you have to wonder what the diplomats will do.’’

A Commonwealth nation which only gained independence from Britain in 1978, Tuvalu has a population of 11,000 across its nine atolls. The main island, Funafuti, is just 20m wide in parts.

But the remote country has become enmeshed in concerns about China’s ambitions in the region.

China and Taiwan have been locked for decades in a war of chequebook diplomacy to win the support of small Pacific nations. The island states have scant resources or revenue but are adept at trading off tensions between China and Taiwan and, more recently, Russia and Georgia.

At times the results have been farcical. In 2004, the nation of Vanuatu announced it was switching its diplomatic recognition from China to Taiwan after a promise of aid. It changed back to China eight days later. Recently, China has increased efforts to win support from the remaining backers of Taiwan, now numbering fewer than 20 worldwide. The latest was the Dominican Republic, which switched allegiance from Taiwan two weeks ago after Beijing offered it a suite of investments and loans reportedly worth NZ$4.5 billion.

Australia has become increasingly concerned that China’s interests in the South Pacific could extend beyond this and pose a security threat. Recently, it was reported that China had approached Vanuatu about establishing a military presence, something it denies.

Malcolm Turnbull, Australia’s prime minister, said: ‘‘We would view with great concern the establishment of any foreign military bases in those Pacific island countries and neighbours.’’

Britain appears to share the concerns, announcing in April that it will open high commissions in Vanuatu, Samoa and Tonga. ‘‘An increased global footprint will ensure Britain and its allies can counter the malign influence of countries who seek to undermine the UK,’’ the Foreign Office stated.

China’s investment in the Pacific states has prompted concerns that a failure to repay debts could allow it to claim significant assets. – Telegraph Group