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China leases an entire Pacific island for 75 years
Why in news?
- Under a secretive deal signed last month with a provincial government in the South Pacific nation “Solomon Islands” , a Beijing-based company with close ties to the Chinese Communist Party has secured exclusive development rights for the entire island of over 1,000 people and its surroundings.
More in news
- Tulagi Island:
(1) Development rights for Tulagi Island were secured by state-owned enterprise founded in 1985, in a renewable 75-year lease.
(2) The island of Tulagi served as a South Pacific headquarters for Britain and then Japan.
(3) During Second World War, its natural deepwater harbour across from Guadalcanal made it a military gem soldiers fought and died for.
- S alarmed after the Deal: The lease agreement has shocked Tulagi residents and alarmed U.S. officials who see the island chains of the South Pacific as crucial to keep China in check and protecting important sea routes.
- Solomons cut ties to Taipei and allied with Beijing, just a few days before the Tulagi deal. A second Pacific nation, Kiribati, followed suit the same week.
- Provisions in the agreement:
(1) Development of a fishery base, an operations centre, and “the building or enhancement of the airport.”
(2) Oil and Gas terminal: Though there are no confirmed oil or gas reserves in the Solomons, the agreement notes that company is interested in building an oil and gas terminal.
(3) Special Economic Zones: The document also states that the government will lease all of Tulagi and the surrounding islands in the province for the development of “a special economic zone or any other industry that is suitable for any development.
(4) Military installation: The infrastructure developed could have potential both civilian and military uses. A military installation would carry strategic and symbolic significance
Sources
The Hindu