How an Australian spy stopped China from growing internet influence South Pacific

As China's plan to spread itself across the South Pacific grew, one Australian spy took matters into his own hands.
By Matt Young

Australia to build comms cable for Solomons and PNG: Bishop

AN AUSTRALIAN spy is being hailed after intervening in a major deal that would have seen a surge in China’s influence in the South Pacific.

Today Australia and its neighbour, the Solomon Islands, will sign off on the first stage of a 4000km high-speed undersea internet cable in a deal that has swiped China off the map.
The multimillion-dollar deal will provide a high speed internet link between Australia and the fifth-largest Oceanian country by population which struggles with unreliable and ineffective internet services. 

It will also connect Papua New Guinea to Australia.
SBS described it as a “significant leap forward for communications” for the impoverished country, which currently relies on satellite networks.
The Solomon Islands had originally awarded the contract to Chinese telecommunications giant Huawei in 2016 but it was “diplomatic pressure and rare intervention” from a top Australian spy that saw the deal take a change of course, according to the ABC.
“Australian intelligence agencies never wanted the Solomon Islands to allow Chinese company Huawei to build the link, and were keen to prevent it happening,” journalist Matthew Doran reported.
Huawei has become the world’s third largest smartphone maker in recent years but the company faces headwinds in its expansion plans due to its close links with the Chinese communist party.
Australia halved the cost of the project for the island nation and refused to allow a “landing point” for the cable on Australian territory if China took control.

Nick Warner, director-general of the Australian Secret Intelligence Service at the launch of the Foreign Policy White paper at DFAT in Canberra. 

A map of submarine cable systems and their landing stations around Australia. 

Julie Bishop this morning defended the decision, saying Australia’s neighbours needed other options than simply China.
“What we have offered the Solomon Islands, and they have accepted, is an alternative to the offer, and ours is cheaper. It’s likely to be faster results for them, and technically superior. And also more resilient,” she said.
“We put up an alternative, and that’s what I believe Australia should continue to do. We are the largest aid donor in the Pacific.
“We are a longstanding partner of Solomon Islands, and I want to ensure that countries in the Pacific have alternatives, that they don’t only have one option and no others, and so in this case we are in a position to be able to offer a more attractive deal for Solomon Islands and PNG, and they accepted it.”

Prime Minister @TurnbullMalcolm welcomes the Prime Minister of #SolomonIslands Rick Houenipwela and Madam Rachel Houenipwela to @Aust_Parliament with a Ceremonial Welcome today, including a 19 gun salute and an inspection of Australia's Federation Guard. pic.twitter.com/HJh9mM5n80— PM&C (@pmc_gov_au) June 13, 2018

Jonathan Pryke, director of the Pacific Islands Program at the Lowy Institute, warned in November last year that if Beijing had its way, it would result in some “really significant national security issues for Australia.
“Having a Chinese state-owned enterprise connecting up to a piece of critical domestic infrastructure is pretty unpalatable for the Australian Government.”
The contract change was only after Nick Warner, the head of Australia’s foreign spy agency, ASIS, intervened in July 2017. 

He warned the Solomon Island’s former Prime Minister that allowing the Chinese such measures would create a cybersecurity risk for Australia and its allies by giving the Chinese access to the “back end” of the Australian network.

President Rodrigo Roa Duterte discusses matters with Australian Secret Intelligence Service Director General Nicolas Peter 'Nick' Warner who paid a courtesy call on the President at the Malaca — an Palace on August 22, 2017.

Today Solomon Islands’ current Prime Minister, Rick Houenipwela, and Australian Prime Minister Malcolm Turnbull will cement the deal in Canberra.
“We have had some concerns raised with us by Australia, and I guess that was the trigger for us to change from Huawei to now the arrangements we are now working with Australia on,” Mr Houenipwela told Sky News in New Zealand last week.
Taxpayers will be slugged for about two-thirds of the price, the government revealed in the 2018 Budget. 

The exact price of the deal, though, is unknown, despite reports it could cost more than $100 million from the aid budget.
Last month, the Pentagon ordered U.S. military bases worldwide to ban mobile phones and other telecommunications equipment made by the Chinese company Huawei after senior U.S. intelligence officials warned the phones could be used to spy on Americans and U.S. service members.
Although there has been steadfast denials from Huawei, that the Chinese tech company eavesdrops on behalf of Beijing, for a number of years the US has prohibited Huawei from bidding for government contracts out of fears for national security
Both Labor and Liberal government blocked Huawei from tendering for the National Broadband Network in 2012 and 2013.

Alex Beech

✔@AlexHBeech

Australia's signing a deal with the Solomon Islands re a high-speed internet cable. But it was originally set to be built by Huawei, so will this upset #China?-- "It's a competitive world. We put forward an alternative. The Solomon Islands are accepting it" -Julie Bishop #auspol

12:28 AM - Jun 13, 2018

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Huawei Menace

Australia cements Solomon Islands deal
BBC News

Solomon Islands PM Rick Houenipwela says Australia raised concerns about a previous deal
Australia has formally agreed to a deal to help build a 4,000km (2,500 mile) internet cable to the Solomon Islands.
The Solomon Islands, a small Pacific nation, had originally given the contract to Chinese company Huawei.
Prime Minister Rick Houenipwela has said the decision followed concerns raised by Australia, which neither nation has elaborated upon.
Analysts say Canberra is concerned about China's influence in the region, a subject of recent Australian debate.
Australian Prime Minister Malcolm Turnbull said on Wednesday: "As we step up our engagement in the Pacific, we are working as partners with Solomon Islands more closely than ever to ensure stability, security and prosperity in the region."
Australia is expected to commit about A$100m (£56m;$75m) of its foreign aid budget to the project.
The deal will bring high-speed internet to the island chain via an underwater cable from Sydney. Australia agreed to a similar deal with Papua New Guinea last year.
Australia is the dominant source of foreign aid for the Solomon Islands. 

Last year, Canberra ended a 14-year peacekeeping mission and signed a renewed security agreement.

What is the controversy?
Mr Houenipwela said his country had abandoned its 2016 agreement with Huawei, a Chinese telecommunications giant.
"We have had some concerns raised with us by Australia, and I guess that was the trigger for us to change from Huawei to now the arrangements we are now working with Australia on," he said last week.
Canberra has previously blocked Huawei from taking part in Australian infrastructure projects, citing national security concerns.
The Australian Broadcasting Corporation reported that Australian spy chiefs had been opposed to Huawei's deal with the Solomon Islands, arguing it might compromise the security of infrastructure in both nations.
Australia is keen to offset what it sees as efforts by China to gain regional influence, according to Peter Jennings, executive director of think tank Australian Strategic Policy Institute.
"Our government was very concerned about the prospect of Huawei providing the Solomons with its sole internet access connection, because that does create an opportunity for Chinese intelligence organisations to monitor all of the communications traffic coming in and out of the island," he told the BBC.
Tensions between Australia and China have been strained in recent times after Canberra announced new laws designed to prevent "foreign" interference.