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	<title>Bankruptcy &#8211; Asia Pacific Report</title>
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		<title>New Caledonia’s domestic airline AirCal files for bankruptcy</title>
		<link>https://asiapacificreport.nz/2026/03/29/new-caledonias-domestic-airline-aircal-files-for-bankruptcy/</link>
		
		<dc:creator><![CDATA[APR editor]]></dc:creator>
		<pubDate>Sun, 29 Mar 2026 03:23:36 +0000</pubDate>
				<category><![CDATA[Aviation]]></category>
		<category><![CDATA[Featured]]></category>
		<category><![CDATA[New Caledonia]]></category>
		<category><![CDATA[Politics]]></category>
		<category><![CDATA[RNZ Pacific]]></category>
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		<category><![CDATA[Transport]]></category>
		<category><![CDATA[Vanuatu]]></category>
		<category><![CDATA[Air Caledonie]]></category>
		<category><![CDATA[AirCal]]></category>
		<category><![CDATA[Bankruptcy]]></category>
		<category><![CDATA[Blockade]]></category>
		<category><![CDATA[Domestic travel]]></category>
		<category><![CDATA[Interisland crisis]]></category>
		<category><![CDATA[Isle of Pines]]></category>
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		<category><![CDATA[Magenta airport]]></category>
		<category><![CDATA[Outer Islands]]></category>
		<category><![CDATA[Protests]]></category>
		<category><![CDATA[Tontouta International Airport]]></category>
		<guid isPermaLink="false">https://asiapacificreport.nz/?p=125671</guid>

					<description><![CDATA[By Patrick Decloitre, RNZ Pacific correspondent French Pacific Desk New Caledonia&#8217;s domestic airline Air Calédonie filed for bankruptcy on Friday, following almost a month of blockades by customers in the French Pacific territory&#8217;s outer islands. The protest movement had been initiated by groups of angry outer islands customers who intended to oppose the company&#8217;s decision ]]></description>
										<content:encoded><![CDATA[<p><em>By <a href="https://www.rnz.co.nz/authors/patrick-decloitre">Patrick Decloitre</a>, <a href="https://www.rnz.co.nz/international/pacific-news/">RNZ Pacific</a> correspondent French Pacific Desk</em></p>
<p>New Caledonia&#8217;s domestic airline Air Calédonie filed for bankruptcy on Friday, following almost a month of blockades by customers in the French Pacific territory&#8217;s outer islands.</p>
<p>The protest movement had been initiated by groups of angry outer islands customers who intended to oppose the company&#8217;s decision to move Air Calédonie&#8217;s operations from the Nouméa Magenta airport to New Caledonia&#8217;s international La Tontouta base, more than 50 km away from Nouméa city.</p>
<p>The smaller airport of Magenta, until now dedicated to domestic traffic, is located closer to Nouméa.</p>
<ul>
<li><a href="https://asiapacificreport.nz/?s=New+Caledonia"><strong>READ MORE:</strong> Other Kanaky New Caledonia reports</a></li>
</ul>
<p>The beginning of the protest movement, which effectively grounded all Air Calédonie aircraft, dates back to 2 March 2026.</p>
<p>The protesters are gathered under the name of &#8220;collective of users&#8221; and, on each participating island, are headed by local chiefs who are invoking custom rights.</p>
<p>In terms of law and order, and in defence of the principle of freedom of movement and &#8220;territorial continuity&#8221;, on the part of French State representatives, there have been no attempts to disrupt the movement by force.</p>
<p>But negotiations have been taking place with leaders in order to find a concerted way out of the blockades.</p>
<p>Economic stakeholders have also alerted authorities of the negative repercussions of the inter-island crisis, especially on tourism and hospitality-related businesses.</p>
<p>On some islands, views expressed range from an outright rejection of any aircraft landing, while others would accept the landing of aircraft from other airlines, but not from Air Calédonie.</p>
<p><strong>Outer islands airports blockaded<br />
</strong>Following weeks of blockade that have caused heavy losses for the company &#8212; dubbed &#8220;AirCal&#8221; &#8212; its board of directors, at a meeting on Friday in the capital Nouméa, decided to file for bankruptcy.</p>
<p>It said the current situation was no longer sustainable.</p>
<p>The blockade affected all of AirCal&#8217;s outer islands destinations, including the Loyalty Islands (Maré, Lifou, Ouvéa and Tiga) and the Isle of Pines (south of the main island of Grande Terre).</p>
<p>One of the options, if approved by a court, could allow a resumption of operations, if the process is deemed sustainable.</p>
<p>The company said under the proposed process, all debts would be frozen and provided it was allowed to resume inter-island flights, Air Calédonie could continue operating.</p>
<p>But if the plan is not approved by the judges, this could also mean an order for the company to go into receivership.</p>
<p>AirCal said the situation currently affected &#8220;almost 200 families&#8221;.</p>
<p><strong>Vanuatu connection<br />
</strong>Air Calédonie, in its embryonic form, started operations in the mid-1950s.</p>
<p>It currently operates a fleet of four turbo-prop ATR-72 aircraft.</p>
<p>Due to previous hardships faced recently (including the covid crisis, which also badly affected inter-islands operations), Air Calédonie had also entered into agreements with Air Vanuatu in October 2025  to lease one of its aircraft for the neighbouring archipelago&#8217;s domestic airlinks, including to and from the capital Port Vila and Vanuatu&#8217;s other main islands of Espiritu Santo (North) and Tanna (South).</p>
<p>In September 2024, a Nouméa-Port Vila bi-weekly link was also established under a codeshare agreement between Air Calédonie and Air Calédonie international aboard an ATR-72 aircraft.</p>
<p>At the time, the agreement was perceived as one step towards a possible merger of the two entities&#8217; domestic and international operations, in a bid to save costs in the face of recent crises.</p>
<p>The recent crisis situation was also compounded by the riots that broke out in New Caledonia &#8212; mainly in the capital Nouméa and its surrounding area &#8212; in May 2024.</p>
<p>The unrest caused about 14 dead and material damage of over 2 billion euros (about NZ$ 4 billion) due to arson and looting.</p>
<p>But it also affected the capacity to operate domestic and international flights out of the airports of Nouméa La Tontouta and New Caledonia&#8217;s outer islands.</p>
<p>The plan to relocate Air Cal&#8217;s operations from Magenta to La Tontouta had been mooted by previous governments of New Caledonia, on the basis that if the move was not effected, then the company would not survive.</p>
<p><strong>&#8216;It looks as if someone wants the death of AirCal &#8212; Alcide Ponga<br />
</strong>Commenting on the blockade, New Caledonia local government President Alcide Ponga was blunt. He told local media earlier this week: &#8220;It looks as if someone wants the death of AirCal.&#8221;</p>
<p>However, one of the blockaded small airports, on the Isle of Pines (South of Nouméa), announced earlier this week its intention to re-allow traffic, on the condition that Air Calédonie lands again at the small and nearby airport of Nouméa-Magenta and not at the main La Tontouta base.</p>
<p>The main shareholders of Air Calédonie are the government of New Caledonia and its three provinces (North, South and the Loyalty Islands group).</p>
<p>During heated debates on Thursday at New Caledonia&#8217;s Congress, politicians and board members from across the political chessboard called on the company to re-engage in negotiations to attempt an agreement to re-open all of the blockaded outer islands airfields and thus bring in fresh cash.</p>
<p>Another cash-generating option also envisaged by the company would be to persuade the board and stakeholders to set aside a financial package so that the company can go on operating.</p>
<p>Earlier this month, Air Calédonie was forced to put half of its staff into temporary unemployment mode, because the company&#8217;s financial situation (a cash flow estimated at only 3 million euros) did not allow any salary payment beyond April 2026.</p>
<p>Air Calédonie said it remained &#8220;mobilised to save a vital company for New Caledonia and design a viable recovery plan&#8221;.</p>
<p>A similar plan was already implemented in 2024 in the wake of the post-riots crisis.</p>
<div class="photo-captioned photo-captioned-full photo-cntr eight_col ">
<figure style="width: 1050px" class="wp-caption alignnone"><img fetchpriority="high" decoding="async" src="https://media.rnztools.nz/rnz/image/upload/s--8Gpa9ST3--/c_crop,h_522,w_835,x_0,y_0/c_scale,h_522,w_835/c_scale,f_auto,q_auto,w_1050/v1774640154/4JR2K88_A_first_humanitarian_special_flight_took_place_on_21_March_2026_to_transport_around_fifty_patients_between_Ouv_a_island_and_the_capital_Noum_a_PHOTO_Gouvernement_de_la_Nouvelle_Cal_donie_jpg?_a=BACCd2AD" alt="A first humanitarian special flight took place on 21 March 2026 to transport around fifty patients between Ouvéa island and the capital Nouméa" width="1050" height="700" /><figcaption class="wp-caption-text">A first humanitarian special flight took place on 21 March 2026 to transport about 50 patients between Ouvéa island and the capital Nouméa. Image: New Caledonia govt</figcaption></figure>
<p class="photo-captioned__information"><strong>Humanitarian special flights for patients<br />
</strong>In recent days, New Caledonia&#8217;s government introduced the notion of humanitarian &#8220;sanitary corridors&#8221; in the form of special flights to transport selected patients in dire need of care to and from the outer islands and the capital Nouméa, at an estimated cost of some 13,500 euros (about NZ$27,000) per trip.</p>
</div>
<p>In the Loyalty Islands, several tourism and hospitality facilities have also suffered the brunt of the disruption of inter-island traffic.</p>
<p>Some of those have already been forced to either close down or enter into receivership.</p>
<p><strong>No maritime alternative<br />
</strong>The situation is further compounded by serious technical problems faced by the alternative means of inter-island transport &#8212; the ferry <em>Betico </em>has also been unable to operate, on a regular basis, over the past few months.</p>
<p>The ship is currently undergoing repairs to one of its engines and it announced tentative resumption of operations next week on April 3, the operating company said.</p>
<p>Until then, all trips to and from Nouméa have been cancelled.</p>
<p><span class="credit"><em>This article is republished under a community partnership agreement with RNZ</em><em>.</em></span></p>
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		<title>Parliament protest donations went to bank account of man with history of unpaid debt</title>
		<link>https://asiapacificreport.nz/2022/03/31/parliament-protest-donations-went-to-bank-account-of-man-with-history-of-unpaid-debt/</link>
		
		<dc:creator><![CDATA[APR editor]]></dc:creator>
		<pubDate>Thu, 31 Mar 2022 01:15:16 +0000</pubDate>
				<category><![CDATA[Editor's Picks]]></category>
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		<category><![CDATA[Syndicate]]></category>
		<category><![CDATA[Anti-vax protests]]></category>
		<category><![CDATA[Bankruptcy]]></category>
		<category><![CDATA[Convoy 2022]]></category>
		<category><![CDATA[Donations]]></category>
		<category><![CDATA[Freedom convoy]]></category>
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		<category><![CDATA[Profest]]></category>
		<category><![CDATA[Protest funding]]></category>
		<category><![CDATA[Voices for Freedom]]></category>
		<guid isPermaLink="false">https://asiapacificreport.nz/?p=72200</guid>

					<description><![CDATA[SPECIAL REPORT: By Tim Brown, RNZ News reporter A man whose personal bank account was used to receive donations for New Zealand&#8217;s Parliament protest is bankrupt and has been declared insolvent three times. The protest lasted for 23 days before ending in a riot on March 2 when police cracked down on the protesters. Jamie ]]></description>
										<content:encoded><![CDATA[<p><strong>SPECIAL REPORT:</strong><em> By <a href="https://www.rnz.co.nz/authors/tim-brown">Tim Brown</a>, <a href="https://www.rnz.co.nz/news/national/">RNZ News</a> reporter</em></p>
<p>A man whose personal bank account was used to receive donations for New Zealand&#8217;s <a href="https://asiapacificreport.nz/?s=Parliament+protest">Parliament protest</a> is bankrupt and has been declared insolvent three times.</p>
<p><span class="caption">The protest lasted for 23 days before ending in a riot on March 2 when police cracked down on the protesters.</span></p>
<p>Jamie Patrick Mansfield has built a social media following by posting antivax and conspiratorial content as Jae Ratana.</p>
<ul>
<li><a href="https://asiapacificreport.nz/2022/03/14/parliament-protest-questions-remain-on-source-of-funding-and-where-it-went/"><strong>READ MORE: </strong> Parliament protest: Questions remain on funding sources and where the money went</a></li>
<li><a href="https://www.rnz.co.nz/news/national/462776/police-continue-to-monitor-protester-gatherings">Police continue to monitor protester gatherings</a></li>
<li><a href="https://asiapacificreport.nz/?s=Parliament+protest">Other reports on the Parliament protest</a></li>
</ul>
<p>He often livestreamed events from the protest in Wellington, but also posted similarly conspiratorial content for months before the occupation.</p>
<p>However, the 35-year-old, who is also known as Jamie Murray, has a history of unpaid debt.</p>
<p>Mansfield was first declared bankrupt after applying for the process himself in the Rotorua District Court in December 2008, at which time he listed his occupation as unemployed.</p>
<p>Mansfield was automatically discharged as bankrupt in December 2011 but again applied for bankruptcy in July 2012, this time listing his occupation as a student.</p>
<p>He was again automatically discharged three years later and remained solvent for five years until again applying to be declared bankrupt in June 2020.</p>
<p>Mansfield&#8217;s latest bankruptcy remains current.</p>
<p>He also had a tenancy terminated in early 2020 after failing to pay rent.</p>
<p>The Tenancy Tribunal awarded the landlord $2770 &#8212; $1650 of which was recovered via a bond, but the balance remains outstanding.</p>
<div class="photo-captioned photo-captioned-full photo-cntr eight_col ">
<figure style="width: 720px" class="wp-caption alignnone"><img decoding="async" src="https://www.rnz.co.nz/assets/news_crops/139272/eight_col_MicrosoftTeams-image_%282%29.png?1646189618" alt="Parliament protest" width="720" height="450" /><figcaption class="wp-caption-text">The Parliament protest lasted for 23 days before ending in a riot on March 2. Image: RNZ</figcaption></figure>
</div>
<p>Despite Mansfield&#8217;s background, his bank account was used to receive donations for Convoy NZ 2022, the group which instigated what became the protest and later occupation at Parliament grounds through February and early March.</p>
<p>RNZ understands Mansfield never disclosed his financial history to the group, and used the name Jae Ratana.</p>
<p>It was by no means the biggest group seeking donations in New Zealand&#8217;s antivax and anti-mandate circles, however, RNZ has seen evidence that thousands of dollars of donations to the group came flooding into Mansfield&#8217;s bank account by early February.</p>
<p>At least $14,000 had been deposited in just a few days.</p>
<p>How much was ultimately deposited into Mansfield&#8217;s bank account, where that money ended up and how it was spent remains unclear.</p>
<p>Mansfield and the organisers of the convoy group fell out, and just a few days into the occupation were not communicating.</p>
<p><strong>Donations &#8216;signed off, triple checked&#8217;<br />
</strong>RNZ attempted to contact Mansfield to get his side of the story.</p>
<p>When we first approached him via social media he responded there was &#8220;absolutely nothing to discuss&#8221;.</p>
<div class="photo-captioned photo-captioned-full photo-cntr eight_col ">
<figure style="width: 720px" class="wp-caption alignnone"><img decoding="async" src="https://www.rnz.co.nz/assets/news_crops/137929/eight_col_20220209_105029.jpg?1644357393" alt="Parliament protest 2022" width="720" height="450" /><figcaption class="wp-caption-text">Jamie Patrick Mansfield&#8217;s bank account was used to receive donations for Convoy NZ 2022. Image: RNZ</figcaption></figure>
</div>
<p>When pushed about the money raised and how it was spent, he responded: &#8220;There were so many people/groups collecting the pūtea [funds] and there also is a difference between koha and donation and as far as the groups I&#8217;m part of have [sic] concerned [sic] they have been signed off and accounted for and it&#8217;s been tripled check so as far as I&#8217;m concerned there is nothing further to talk about nor will the team be happy me speaking to a reported [sic] but I unfortunately do not trust any reporters either as story&#8217;s [sic] love to be twisted.&#8221;</p>
<p>When asked what he meant by the groups he was part of having things signed off, accounted for and triple checked, he responded: &#8220;No further questions thank u&#8221;.</p>
<p>He followed up with: &#8220;When u are ready I would love to see the so called information u have got&#8221;, &#8220;Then we will correct what is needed because I can guarantee you you do not have truthful information&#8221; and &#8220;I can probably stomp on what Information-hearsay you have&#8221;, before subsequently blocking this reporter from contacting him on Facebook.</p>
<p>Rumours have swirled on social media about the whereabouts of the money raised since the early days of the occupation.</p>
<p>Mansfield took to Facebook on March 8 to address the rumours: &#8220;Just to clarify and get that story straight, obviously the Convoy and occupation of Parliament I did help fund out of my personal money. For anyone who knows me personally, can back me up there.</p>
<p>&#8220;So I did help sponsor and donate to convoy. I did not steal any money. I did not help myself to any money,&#8221; he claimed in the livestream.</p>
<p>RNZ spoke to people who had known Mansfield personally and they say he has a long history of leaving people out of pocket.</p>
<p><strong>&#8216;An exceptionally bad tenant&#8217; &#8211; landlord<br />
</strong>One such person was the landlord who took Mansfield to the Tenancy Tribunal and ultimately had him evicted for unpaid rent and bills, and damage to the property.</p>
<p>He told RNZ he had still not seen the balance of the money he was owed by Mansfield.</p>
<p>&#8220;Jamie … was an exceptionally bad tenant who continually made promises he didn&#8217;t keep … I hope to never see him again,&#8221; the landlord, who RNZ agreed not to name, said.</p>
<p>Problems with the tenancy became clear almost as soon as Mansfield moved in as he was late with his rent for five of the first six weeks he lived in the rental and arrears grew from there, the landlord said.</p>
<p>&#8220;I knew he was a bad egg from the start and I was like &#8216;What the hell have I done letting this guy move into my house&#8217; and then it was just a matter of following due process to get him out.</p>
<p>&#8220;He left the place in an absolute state. There was broken furniture and broken beds. I&#8217;ve got photos of a mountain full of rubbish that I had to drag out of the house, then get a company . . . come to pick it up to the tune of $300.</p>
<p>&#8220;He made no attempt to clean up after himself and just doesn&#8217;t give much regard to other people.&#8221;</p>
<p>RNZ again tried contacting Mansfield through his back-up accounts on social media to clarify how he came to be the one receiving donations, what aspects of his history he disclosed to the Convoy group and to find out how much money was received and how it was used.</p>
<p>He did not respond to those messages.</p>
<p><strong>Group raises more than $60,000 by early March<br />
</strong>The financing of the Parliament protest and occupation remains murky.</p>
<p>Weeks ago RNZ asked Voices For Freedom and The Freedoms and Rights Coalition for information on their finances &#8212; they did not respond.</p>
<p>One group that did give a glimpse into the huge sums of money involved was Profest.</p>
<p>Profest NZ Limited was incorporated on February 21 with Paul Currie as its sole director and shareholder.</p>
<p>Profest&#8217;s website publicly showed it raised more than $20,000 in online donations in just a few days and had raised more than $66,000 by March 4.</p>
<p>Currie, a Whangārei resident with business and property interests around New Zealand, said Profest was created to try to tie together the disparate and sometimes differing voices and movements at the protest.</p>
<p>He said he set it up because it was necessary to give the occupation &#8220;a little bit more of a format&#8221;.</p>
<p>Profest did not start collecting donations until over a week after the occupation began.</p>
<p>&#8220;Profest was late in the piece, involved more for directing some of the donations that were contributed but was by no means the most significant &#8212; financially &#8212; donation collector,&#8221; Currie told RNZ.</p>
<div class="photo-captioned photo-captioned-full photo-cntr eight_col ">
<figure style="width: 720px" class="wp-caption alignnone"><img loading="lazy" decoding="async" src="https://www.rnz.co.nz/assets/news_crops/141007/eight_col_MicrosoftTeams-image_%2822%29.png?1648627720" alt="Police undertake an early morning operation to restore order and access to the area around Parliament. " width="720" height="450" /><figcaption class="wp-caption-text">Profest says it did not start collecting donations until more than a week after the occupation began. Image: RNZ</figcaption></figure>
</div>
<p>Unlike Voices For Freedom, The Freedoms and Rights Coalition or Jamie Mansfield, Currie spoke to RNZ freely and over a 38-minute conversation offered details about how donations to Profest were spent.</p>
<p>He could not offer a definitive sum on how much money was raised between on-the-ground cash donations, online donations and BitCoin, however, he said the group was committed to providing a financial summary to all who donated and that would occur in &#8220;due course&#8221;.</p>
<p>Only a &#8220;nominal&#8221; sum of what was donated remained and accounts were still being settled, Currie said.</p>
<p>Some of the larger infrastructure costs and ongoing food costs of the protest had fallen on Profest to pay, Currie said.</p>
<div class="photo-captioned photo-captioned-full photo-cntr eight_col ">
<figure style="width: 720px" class="wp-caption alignnone"><img loading="lazy" decoding="async" src="https://www.rnz.co.nz/assets/news_crops/141006/eight_col_20220209_105512.jpg?1648625621" alt="A sausage sizzle and coffee and tea station, with a generator being set up for protesters. " width="720" height="450" /><figcaption class="wp-caption-text">A sausage sizzle and coffee and tea facilities set up during the protest. Profest says its fundraising was paying for some of the food costs of the occupation. Image: RNZ</figcaption></figure>
</div>
<p>He had not taken any director&#8217;s fees or remuneration related to Profest NZ Ltd.</p>
<p>&#8220;I&#8217;m not in it for any personal financial gain,&#8221; Currie said.</p>
<p>When the protest ended Profest stopped calling for donations and closed the donation function on its website, unlike Voices For Freedom and The Freedoms and Rights Coalition which were still collecting donations.</p>
<p>Currie also said he was unaware of who Jae Ratana or Jamie Mansfield was. He did not believe he met him at the protest and he did not believe Mansfield had contributed financially to Profest.</p>
<p>RNZ understands a complaint was made to police regarding the whereabouts of money given to Mansfield.</p>
<p>&#8220;While <a href="https://www.rnz.co.nz/news/national/462659/parliament-protest-aftermath-police-enter-significant-investigation-phase">investigations are ongoing</a> we are not in a position to provide any comment relating to particular individuals/ groups,&#8221; police said in a statement to RNZ.</p>
<p><i><em>This article is republished under a community partnership agreement with RNZ.</em></i></p>
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		<title>Australia and New Zealand compete with China for Tongan influence</title>
		<link>https://asiapacificreport.nz/2022/01/24/australia-and-new-zealand-compete-with-china-for-tongan-influence/</link>
		
		<dc:creator><![CDATA[APR editor]]></dc:creator>
		<pubDate>Mon, 24 Jan 2022 10:41:21 +0000</pubDate>
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		<guid isPermaLink="false">https://asiapacificreport.nz/?p=69229</guid>

					<description><![CDATA[ANALYSIS: By Michael Field in Auckland Within a day of the massive volcanic eruption that rocked Tonga and severed the archipelago&#8217;s communications with the rest of the world, a handful of countries vying for influence in the region pledged financial aid. Hunga Tonga-Hunga Ha&#8217;apai, 60 km north of the capital Nuku&#8217;alofa, blew up on January ]]></description>
										<content:encoded><![CDATA[<p><strong>ANALYSIS:</strong><em> By Michael Field in Auckland</em></p>
<p>Within a day of the massive volcanic eruption that rocked Tonga and severed the archipelago&#8217;s communications with the rest of the world, a handful of countries vying for influence in the region pledged financial aid.</p>
<p>Hunga Tonga-Hunga Ha&#8217;apai, 60 km north of the capital Nuku&#8217;alofa, blew up on January 15, sending tsunami waves across the Pacific and shock waves around the world.</p>
<p>The eruption cut the tiny kingdom&#8217;s only fibre-optic cable, to Fiji, 800 km to the west, leaving its 110,000 residents without internet or voice connections to the world.</p>
<ul>
<li><a href="https://asiapacificreport.nz/2022/01/23/global-aid-effort-underway-for-tongas-recovery-from-hunga-volcano-tsunami/"><strong>READ MORE: </strong>Global aid effort underway for Tonga’s recovery from the Hunga tsunami</a></li>
<li><a href="https://www.aljazeera.com/news/2022/1/21/world-rushes-aid-to-tsunami-hit-tonga-as-drinking-water-food-runs-short">World rushes aid to tsunami-hit Tonga amid water, food shortage</a></li>
<li><a href="https://tpplus.co.nz/news-politics/tonga-eruption-leaders-grateful-for-the-support-from-across-the-communities/">Tonga Eruption: Leaders grateful for the support from across the communities</a></li>
<li><a href="https://asiapacificreport.nz/2022/01/18/gallery-what-the-nz-air-crew-saw-at-tongas-nomuka-a-choking-carpet-of-volcanic-ash/">Gallery: Tongan eruption damage in pictures</a></li>
<li><a href="https://asiapacificreport.nz/2022/01/22/second-day-of-nzs-tonga-tsunami-emergency-fundraiser-today/">Second day of NZ’s Tonga tsunami emergency fundraiser</a></li>
<li><a href="https://asiapacificreport.nz/?s=Tonga+volcano+eruption">Other Tonga volcano eruption reports</a></li>
</ul>
<p>A <a href="https://asiapacificreport.nz/2022/01/18/gallery-what-the-nz-air-crew-saw-at-tongas-nomuka-a-choking-carpet-of-volcanic-ash/">Royal New Zealand Air Force surveillance flight</a> showed that several small islands suffered catastrophic damage, and it has become clear there is extensive damage in Nuku&#8217;alofa.</p>
<p>New Zealand has sent two naval ships equipped with desalination equipment and aid materials to Tonga, which is covid-free and has effectively closed its borders. Only fully vaccinated personnel are allowed to enter the country.</p>
<p>Within hours of the eruption, New Zealand Prime Minister Jacinda Ardern announced an immediate grant of NZ$100,000 (US$68,000) and mobilised naval and air forces to rush help to Tonga.</p>
<p>Australia followed, and a day later China pledged $100,000. The US followed shortly thereafter, with all donors making it clear it was the first round of aid.</p>
<p><strong>Heavy debt to Beijing</strong><br />
Siaosi Sovaleni, Tonga&#8217;s newly elected prime minister, knows his islands have little money and a heavy debt to Beijing. After political riots in 2006 that resulted in the destruction of Nuku&#8217;alofa&#8217;s central business districts, China was the only country willing to help rebuild, but only through a loan, not aid.</p>
<p>Tonga still owes $108 million to the Export-Import Bank of China, equivalent to about 25 percent of its gross domestic product and about $1000 per Tongan.</p>
<p>The debt at times has threatened to bankrupt Tonga, one of the Pacific&#8217;s poorest countries, but China repeatedly declines to write it off.</p>
<p>Suspicion around Beijing&#8217;s agenda has grown with the construction of a lavish and large embassy in Nuku&#8217;alofa. Surveillance pictures suggest it was undamaged by the tsunami.</p>
<figure id="attachment_69234" aria-describedby="caption-attachment-69234" style="width: 680px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="wp-image-69234 size-full" src="https://asiapacificreport.nz/wp-content/uploads/2022/01/Chinese-embassy-in-Nukualofa-WP-680wide.png" alt="The Chinese Embassy in Tonga" width="680" height="515" srcset="https://asiapacificreport.nz/wp-content/uploads/2022/01/Chinese-embassy-in-Nukualofa-WP-680wide.png 680w, https://asiapacificreport.nz/wp-content/uploads/2022/01/Chinese-embassy-in-Nukualofa-WP-680wide-300x227.png 300w, https://asiapacificreport.nz/wp-content/uploads/2022/01/Chinese-embassy-in-Nukualofa-WP-680wide-80x60.png 80w, https://asiapacificreport.nz/wp-content/uploads/2022/01/Chinese-embassy-in-Nukualofa-WP-680wide-555x420.png 555w" sizes="auto, (max-width: 680px) 100vw, 680px" /><figcaption id="caption-attachment-69234" class="wp-caption-text">The Chinese Embassy in Tonga &#8230; photographed before the volcano eruption and tsunami. Image: Wikimedia/GNU Free Documentation Licence</figcaption></figure>
<p>Former Australian Prime Minister Kevin Rudd tweeted that Australia must be first to give Tonga assistance.</p>
<p>&#8220;Failing that,&#8221; he said, &#8220;China will be there in spades.&#8221; He added that large Australian warships should be sent immediately: &#8220;It&#8217;s why we built them.&#8221;</p>
<p>China&#8217;s <em>Global Times</em>, the English language mouthpiece of the Chinese Communist Party, published an editorial saying, &#8220;Tonga is in need of emergency aid, and China said it is willing to help.&#8221;</p>
<p><strong>Huawei interests in Pacific</strong><br />
It noted that the volcano had taken out Tonga&#8217;s submarine cable and refers to attempts by Huawei to operate in the South Pacific.</p>
<p>&#8220;It is important to note that in addition to providing necessary supplies, China is capable of helping Pacific island nations with their reconstruction work,&#8221; the <em>Global Times</em> said.</p>
<p>&#8220;In fact, in recent years, Chinese companies such as technology giant Huawei have been actively pursuing infrastructure projects in Pacific island nations, of which the construction of submarine fibre optic cables is an important part.&#8221;</p>
<p>Huawei had attempted to be involved in cables in Papua New Guinea and the Solomon Islands, but Australia succeeded in blocking the bids.</p>
<p>The <em>Global Times</em> said some Western countries, led by the US, are trying to block such cooperation as they see Pacific island nations &#8220;as a place for competing for geopolitical influence and publicly claim to counter China&#8217;s growing influence in the Pacific&#8221;.</p>
<p>The tabloid added Pacific island nations did not want to be forced to pick sides between China and the US.</p>
<p>The Nuku&#8217;alofa riot occurred on 16 November 2006 when the country was under a royal and noble-dominated regime that essentially ruled out democracy. Following the ascension to the throne of the late King Tupou V, pro-democracy and criminal groups set fire to the capital.</p>
<figure id="attachment_68955" aria-describedby="caption-attachment-68955" style="width: 640px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="wp-image-68955 size-large" src="https://asiapacificreport.nz/wp-content/uploads/2022/01/RNZDF-Tonga-2-Nomuka-1024x683.jpg" alt="" width="640" height="427" srcset="https://asiapacificreport.nz/wp-content/uploads/2022/01/RNZDF-Tonga-2-Nomuka-1024x683.jpg 1024w, https://asiapacificreport.nz/wp-content/uploads/2022/01/RNZDF-Tonga-2-Nomuka-300x200.jpg 300w, https://asiapacificreport.nz/wp-content/uploads/2022/01/RNZDF-Tonga-2-Nomuka-768x512.jpg 768w, https://asiapacificreport.nz/wp-content/uploads/2022/01/RNZDF-Tonga-2-Nomuka-1536x1024.jpg 1536w, https://asiapacificreport.nz/wp-content/uploads/2022/01/RNZDF-Tonga-2-Nomuka-696x464.jpg 696w, https://asiapacificreport.nz/wp-content/uploads/2022/01/RNZDF-Tonga-2-Nomuka-1068x712.jpg 1068w, https://asiapacificreport.nz/wp-content/uploads/2022/01/RNZDF-Tonga-2-Nomuka-630x420.jpg 630w, https://asiapacificreport.nz/wp-content/uploads/2022/01/RNZDF-Tonga-2-Nomuka.jpg 1800w" sizes="auto, (max-width: 640px) 100vw, 640px" /><figcaption id="caption-attachment-68955" class="wp-caption-text">A P-3K2 Orion surveillance aircraft flies over Nomuka island in the Ha&#8217;apai group of the kingdom of Tonga, showing extensive ash damage from the Hunga Tonga-Hunga Ha&#8217;apai volcano. Image: NZ Defence Force</figcaption></figure>
<p><strong>Consequences of &#8216;soft loan&#8217;</strong><br />
Then Prime Minister Fred Sevele asked China for $100 million in aid but instead received a soft loan of $112 million to fund the rebuilding of Nuku&#8217;alofa, repayable over 20 years.</p>
<p>The consequences of the loan were profound for Tonga, and a subsequent prime minister, the late &#8216;Akilisi Pohiva, used the matter to win elections.</p>
<p>In 2013 Pohiva said the kingdom had debts it could never repay: &#8220;Our hands and feet have already been tied,&#8221; he said.</p>
<p>&#8220;We need a government by the people that can work this out with the Chinese government in a way Tongans now and in the future will not suffer catastrophic consequences.&#8221;</p>
<p>He said he feared the Chinese would take over the running of Tonga.</p>
<p>&#8220;If we fail to meet the requirements and conditions set out in the agreement,&#8221; he said, &#8220;we have to pay the cost for our failure to meet the conditions.&#8221;</p>
<p><strong>Help less flat-footed</strong><br />
Jonathan Pryke, director of the Pacific Islands Programme at Australia&#8217;s Lowy Institute, said help to Tonga from Australia and New Zealand had been less flat-footed than it was during the recent anti-China riots in the Solomon Islands. Pryke wondered if Tonga was different because of the nature of the crisis.</p>
<p>&#8220;While valuable in its own right, the support Australia and New Zealand provide is not entirely altruistic,&#8221; Pryke said. &#8220;This support generates a lot of goodwill and &#8216;soft power&#8217; in the region, and gives Australian and New Zealand defence assets the chance to &#8216;get into the field.'&#8221;</p>
<p>Pryke said Australia and New Zealand were both eager, now more than ever, in light of the geostrategic competition with China, to show the region that they were its best and most reliable foreign partners.</p>
<p>&#8220;With that said, Tongan officials are much wiser now in what support they will accept from China than in 2006, as repayments on that debt continue to be pushed off but will be monumentally costly for the government when they finally do come due.&#8221;</p>
<p>New Zealand-based security consultant Dr Paul Buchanan of 36th-Parallel.com said he wondered why China was being slow in its reaction. It previously sent a navy hospital ship to Tonga, but not this time.</p>
<p>He noted the cable had only recently gone into Tonga and that two years ago it was damaged by a ship&#8217;s anchor. While coincidental, the latest severing offers an opportunity for China.</p>
<p><strong>Opportunity for China&#8217;s signals fleet</strong><br />
&#8220;Getting involved in the process of repair/replacement of the branch cables linking Suva to Nuku&#8217;alofa&#8230; allows [China&#8217;s] signals fleet to get involved in a way that it has not been able to do before,&#8221; Dr Buchanan said.</p>
<p>Noting Beijing&#8217;s unexpectedly large embassy in Tonga, Dr Buchanan said China might act in its own self-interest rather than out of a sense of humanitarianism.</p>
<p>&#8220;Perhaps the kingdom knows this and will try to leverage the PRC&#8217;s slow response in favour of more favorable reconstruction terms,&#8221; Dr Buchanan said. &#8220;But I am not sure that the king and his court play that way.</p>
<p>&#8220;New Zealand and Australia seem to have responded as could be expected, but if my read is correct, [China] seems willing to cede [the] diplomatic initiative to the &#8216;traditional&#8217; patrons on the issue of immediate humanitarian relief.&#8221;</p>
<p><em>Michael Field is an independent New Zealand journalist and co-editor of <a href="https://www.facebook.com/groups/137895163463995/">The Pacific Newsroom</a>. This article was first published by <a href="https://asia.nikkei.com/Politics/International-relations/Australia-and-New-Zealand-compete-with-China-for-Tonga-influence">Nikkei Asia</a> and is republished with permission.</em></p>
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