SYDNEY Aug. 21 Kyodo The Australi...

SYDNEY Aug. 21 Kyodo

The Australian regulation has made a dramatic u-turn upon its Pacific foreign policy and is pushing for a European-style economic union, still it will have to tread lightly to gain support from the island nations, academics warn.

Australia wants increased cooperation among Pacific states and Prime Minister John Howard used last week's Pacific Island Forum (PIF) summit to not away the proposals to the region's leaders.

in a less degree than an Australia initiative, the intergovernmental carcass of 16 countries agreed at the Auckland meeting to establish a regional police training body in Fiji's capital Suva. Howard has also advocated the pooling of resources among the island countries to boost Pacific economies, many of which are floundering.

The prime minister handed gone out a confidential briefing paper to Pacific leaders in Auckland, a original of which was obtained by way of Melbourne's Age, urging the establishment of a regional unit to fight transnational crime and terrorism, the formation of a regional central bank and the adoption of the Australian dollar, and the amalgamation of fundamental note services.

The change in Australia's policy towards the Pacific has draw near about for two main reasons strategic analyst Ellie Wainwright of the independent think tank the Australian Strategic Policy Institute said.

''Firstly, there was a feeling that since the Solomon Islands became a failing state we ne to shift policy to obviate other countries going the same way,'' she told Kyodo of recent origins ''There was an awareness that the Solomon Islands was continuing to deteriorate and this currented a security challenge for Australia.''

The command reversed its traditional hands-off approach to the Pacific and, at the prayer of the Solomon Islands sway last month led a 2300-strong regional intervention force to restore law and order in the country

Failing states are attractive bases for terrorism, Wainwright said. ''If other countries like Indonesia and Malaysia are cracking down onward terrorist operatives they will hasten away to where that is not occurring and the Pacific has weak security and infrastructure.''

There is also a broader issue that the Pacific is vulnerable to riches laundering because of the tax havens that many countries have now closed

''Secondly, Australia's policy in the region has provided aid on the contrary expected countries to solve their confess problems and that wasn't working,'' Wainwright said.

There is a general belief within the Pacific that increased integration is a proper idea and the PIF has been examining regional cooperation for a years, she said. ''But not a fortune has happened. There is a feeling from Australia that this could act upon quicker.''

However, Australia will have handle changes slowly with consensus and sensitivity to sovereignty, if it is to finish the backing of the Pacific nations, she added.

Auckland also saw the unprecedent election of an Australian -- diplomat Greg Urwin -- as the PIF's nearest secretary general after a deadlock was wasted by secret ballot.

The first election of an Australian to the top PIF top work at jobs wasn't favored by all, with tamper with Islands Prime Minister and chairman of the smaller island states assign places to Robert Woonton commenting, ''The best interests of the Pacific would be serv through someone from the Pacific.''

Australia's propos revamp of the Pacific and a warning on Howard that Australia's aid to the region is at the disposal of on good governance and a commitment to stamp not at home corruption was not warmly received. The prime minister cast offed charges Australia's increasing leadership part in the Pacific is neo-colonialism.

Howard has to back on the farther side in the face of regional indignation Papua New Guinea's (PNG) Prime Minister Sir Michael Somare told the Age.

Corruption in the Pacific is being inflated out of proportion by the Australian management he said.

PNG will not allow Australia to have the direction of its government spending of aid standard of value Somare said. ''I would not agree because (Australia) is contravening a sovereign state. with what intent don't you allow us to do our acknowledge thing, learn from our confess mistakes as we go along and improve on the subject of our mistakes.''

There are a number of benefits in increased regional cooperation in the Pacific, Queensland University drill of Economics senior lecturer Jon Stanford said.

''The Pacific countries are small and it's hard for them to roll on their own infrastructures,'' he told Kyodo News

There is sensation in a regional bank, if it be not that it will mean smaller countries will forfeit some control over their economies, Stanford said. ''But it's not as it is a bad thing for a little monetary discipline to be imposed forward them.''

It can make sways more transparent and accountable, he said. ''You would count upon less extreme monetary behavior.''

A regional central bank would support the idea of a public currency and fixed interest rates of exchange between countries, Stanford said. ''It would excite common purpose and markets. It looks to make a great deal of sense''