Australia and Vanuatu to negotiate security pact to head off China expansion

Australia will negotiate a security treaty with Vanuatu, it announced Monday, just months after a report suggesting China wanted to build a military base on the Pacific nation.

Prime Minister Malcolm Turnbull called Vanuatu one of Canberra's "key partners" and after hosting his counterpart Charlot Salwai said a security pact was in the works.

"We agreed to commence negotiations on a bilateral security treaty on common security interests, such as humanitarian assistance and disaster response, maritime surveillance and border security, police and defence cooperation," Turnbull said.

He added that Australia would provide technical assistance to support Port Vila in developing its first national security strategy to ensure a "stable, sustainable and prosperous Vanuatu".

Canberra also agreed to better fund Vanuatu's education sector, boost opportunities for its residents to work in Australia and strengthen a cyber-security partnership.

Regional capitals have been fretting over the rise of an increasingly assertive China in the Pacific through "soft diplomacy", with Beijing showering countries with development money.

Australia and New Zealand fear it could potentially upset the region's strategic balance.

In April, the Sydney Morning Herald said China had approached Vanuatu about the possibility of opening a military base there, sparking alarm in Canberra. Beijing and Port Vila both insisted there was no such plan.

Salwai's visit is the latest in a flurry of activity to Canberra in recent months.

Turnbull has also hosted the leaders of Papua New Guinea and the Solomon Islands, while Foreign Minister Julie Bishop has visited Palau, Micronesia and the Marshall Islands.

Australia announced a refocusing of its foreign aid programmes in May in a move to win hearts and minds in the island nations of the Pacific.

Earlier this month, it agreed to help fund and build an underseas communications cable to the Solomon Islands.