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The Australian leader's approach of pushing back against China's influence in the Pacific Islands has been dealt another blow, with a major defence treaty with Papua New Guinea postponed due to sovereignty concerns.

Agreement Finalization Postponed Amid Sovereignty Discussions

A deal was expected to be signed this week, but the Australian leader is leaving Port Moresby without concluding the so-called Pukpuk defence treaty with his PNG Prime Minister, James Marape.

Albanese minimized the postponement, indicating that cabinet deliberations were interrupted by celebrations of PNG's 50th year of sovereignty. In place of a treaty, the two nations agreed to a shared statement and committed to continue negotiations on the wider defence agreement.

Second Setback in Recent Weeks

This marks the second such delay in as many weeks for the Australian government. Earlier this month's Pacific Islands Forum, the government of Vanuatu paused the signing of a bilateral deal with Australia, citing that more work was needed on resource investment from China.

Main Components of the Planned Agreement

The PNG deal is expected to create joint defence arrangements in the case of a military attack, and would allow nationals of both countries to enlist in the defence forces of the other.

• Joint training exercises
• Enhanced technical interoperability
• Collaborative efforts on cybersecurity preparedness

Diplomatic Efforts and Future Expectations

Albanese has pushed for a deal for PNG to enter the National Rugby League in 2028, which acts as a significant incentive within the wider $600m agreement. He stressed that there was no postponement to the PNG team entering the league.

Addressing media at a press conference in Port Moresby, Albanese said that the wording of the security treaty had been confirmed, but both governments required further discussion to complete their internal approvals.

"It is highly beneficial. There is no downside in this whatsoever. This is all upside for Australia and for PNG."

PNG's Perspective

The PNG Prime Minister noted that PNG's defence capability was not sufficient to defend the nation and its population, making joint defence arrangements with Australia essential.

He stressed that the proposed agreement was initiated by Papua New Guinea, not Australia's, and that it would not affect PNG's independence.

"This defence pact for Papua New Guinea would be the most significant in terms of secure relations we have given to any nation."

Response from Opponitions

Opposition representative Jane Hume described the delay as "a significant setback for the PM", stating that it is "crucial that these deals are approached appropriately and with a guarantee that they will be finalized."

Broader Implications

The Chinese government has employed development loans and loan agreements to expand its presence with Pacific Island countries, undercutting Australia's relationships with the region and straining the country's foreign policy efforts.

Labor maintains that both agreements can yet be finalized in the next few months.