Until recently, many people had not heard of the Conflict Islands. The islands were named after their 1886 discovery by HMS naval survey ship Conflict. This group of 21 atolls lies within the Milne Bay Province of Papua New Guinea, between Milne Bay and Misima Island. They are within PNG’s border, subject to PNG’s legal system and foreign-owned. They are also now for sale, subject to PNG’s legal system.

This is problematic for a number of reasons. For Australia, there are the security concerns associated with the proximity of the islands to Australia. They lie less than 1000 kilometres off our coastline. The Jomard Passage is close to the Conflict Islands and, on average, about 30 large commercial ships transit the passage every day, some from Australian east coast ports. The main island, Irai, has the capacity for a 3000-metre runway. With increasing interest from China in the region, Australia is right to be concerned about what happens to the islands.

For the PNG government, there’s the question of foreign ownership of the islands. Land in PNG is normally held by customary landowners. In the early colonial period, there were quite a few plantations on small islands, the land being “purchased” from local “chiefs” for trinkets. Most have ceased operating under plantation management. Some have been abandoned and reverted to customary control. Some were unoccupied but have remained under freehold title and have since been bought and sold.

However, since independence in 1975, ownership of land is confined to the state and citizens of PNG with the country’s constitution providing that only citizens can acquire freehold land. Because some land was owned by non-citizens at the time of independence, provision was made to enable transfers of that land into the future.

A law was passed to enable owners of freeholds to apply for them to be converted to state leases. There is also the pressure from local clans who claim the islands as their own territory and have long been pushing the PNG central government and the Milne Bay provincial government to restore their rights to ownership.

China’s wider Pacific interests need to be noted here. In June, Chinese Foreign Minister Wang Yi conducted a tour of seven Pacific Island states, including PNG, to press a joint plan to give China a greater role in regional maritime affairs. While the offer was turned down by the island countries, China will continue to push for a regional ocean security pact.

And let’s not forget the islands’ natural beauty. Described in tourism promotions as a “slice of heaven” and a pristine tropical paradise at the top of the Coral Sea, they were visited by cruise ships pre-COVID. They are also home to 30 permanent residents and a turtle conservation program.

It’s a sensitive time to be selling. The Australian owner of the islands, Ian Gowrie-Smith, is offering to negotiate with the Australian government to sell them, given the political and possible security implications of any potential Chinese purchase.