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Under a bilateral agreement, Australian officers are posted to trouble spots, assisting the Papua New Guinean police and the Defence Force. Australia intervenes in Papua New Guinea to reverse the decline of the Pacific Island state.

The attack by the southeast Asian Islamist group, Jemaah Islamiyya (JI) ended with a suicide bombing outside the Australian embassy in Jakarta whose perpetrators of the attack were from the terrorist network led by Azahari bin Husin and Noordin Mohammad Top. JI claims Australia as the target since the country is assisting Indonesia in a very significant way to target the JI network.

The report of an enquiry of the performance of the Australian intelligence services has acquitted Prime Minister John Howard's conservative Coalition government of trying to influence assessments of Iraq's weapons of mass destruction (WMD) capacity. The report by Philip Flood has rejected allegations of politicization of the intelligence services, but has found intelligence failures in Iraq, which are attributed to the lack of co-ordination, absence of priorities and an unwillingness to contest judgments.

The attractiveness of unstable Pacific Island countries to transnational criminals is highlighted in a raid on a huge amphetamine laboratory in Suva, capital of Fiji. Six people, four Hong Kong Chinese and two Fijian nationals were arrested in the raid, which uncovered sufficient chemicals to manufacture 1,000 kg of crystal methamphetamine.

Australia has increased the money it spends on national intelligence and security organizations, as it faces the risk of terrorist attack that was the outcome of its participation in the occupation of Iraq. The International Maritime Organization's new International Ship and Port Facility Security code (ISPS) requires member governments to assess security threats to their port facilities and to address the weaknesses found in the system.

A pledge by the Australian opposition Labor Party to pull troops out of Iraq has emerged as a key issue in the lead up to national elections due by the end of 2004. The deployment of Australian troops in Iraq, the possibility of a terrorist attack in Australia, and a prospective link between the two has emerged at the head of a debate over the role of the intelligence, security and defense services, and relationship with the USA.

The attempts of Dili government that is looking to potential oil revenues of up to US $40 billion over three decades as the key to East TimorEs economic development and the means to allay growing domestic discontent, are discussed. However, two January announcements made by backers of petroleum projects in the Timor Sea illustrate the obstacles to the development of the basin's oil and gas reserves.

The arrest of a North Korean freighter carrying 50kg of heroin off the Australian coast has increased the speculations about PyongyangEs role in illegal drug trafficking. The North Korean business Pong Su was captured on 16th April 2003 on the southern coast of Australia near Lorne, 170km southwest of Melbourne.

Australia and China have finalized an agreement that involves the shipment of liquefied natural gas from the coast of Western Australia to China's Guangdong province.

The Australian government has stated that it would establish an independent inquiry into the performance of AustraliaEs intelligence agencies in the lead-up to the war in Iraq. The inquiry, which is to be headed by former senior diplomat Philip Flood, would deal only with the intelligence services themselves.

Professor GL Peiris, the Sri Lankan government's chief negotiator, believes that the existing peace talks between Colombo and the Liberation Tigers of Tamil Eelam (LTTE) are more likely to succeed than previous efforts. Peiris states that there is a general recognition that there is no viable military solution, and in order to resolve the conflict, direct negotiation with the LTTE is necessary.

Australian Defense Minister Robert Hill says his government has increased its intelligence capabilities, especially in the Southeast Asia area, since the 9-11-01 terrorist attacks in the US. In addition, Australia has sent troops and equipment to help in the Afghanistan Conflict.