US unveils $113m package to ensure prosperity in Pacific region

Australia has reached a deal with the US and Japan to invest in projects in the Indo-Pacific region, and promote economic growth.

The agreement will be seen as a move to counter China’s expansion, and its debt-laden financial help to Pacific nations.

The deal was initiated in talks between prime minister, Malcolm Turnbull, and Donald Trump, in February.

The partnership recognises that “more support is needed to enhance peace and prosperity in the Indo-Pacific region”.

Foreign Minister, Julie Bishop, said the agreement would “mobile investment in the projects that drive economic growth… and foster a free, open, and prosperous Indo-Pacific”.

“We share the belief that good investments stem from transparency, open competition, sustainability, adhering to robust global standards,” the minister said.

“By working together we can attract more private capital to achieve greater results.”

China has been accused of using loans and building of infrastructure in Pacific nations, in particular, to expand its power and influence.

In a major speech overnight, US Secretary of State, Mike Pompeo, announced a $113 million package of new economic initiatives.

It was, the secretary said, “just a down payment on a new era in US economic commitment to peace and prosperity in the region”.

Mr Pompeo said the Trump administration had a “clear vision” of the region into the 21^st century.

In an apparent warning to China, without mentioning it by name, Mr Pompeo said the US would oppose any country that seeks domination in the region.