Australia to make South Pacific aid conditional

Australia says it will impose conditions on aid to Papua New Guinea (PNG) and Solomon Islands to get better governance in the South Pacific.

The Prime Minister, John Howard, says Australia has every right to attach conditions to its aid.

"If you want Australian aid, you've got to reduce corruption. If you want Australian aid, you've got to improve governance," Mr Howard said.

"If you want Australian aid, you've got to have a better approach to economic management.

"It's not a question of forcing countries to do things, it's a question of defending the operation of the rule of law in Australia."

Mr Howard says the diplomatic fight with Papua New Guinea and Solomon Islands is caused by the police effort to extradite and prosecute the suspended Solomons Attorney-General, Julian Moti.

He says the Government will not interfere with the police and the rule of law.

Source: ABC News