REPORTER: Thom Cookes
It's 12:30 last Friday at Port Moresby's international airport. This is the biggest state welcome that PNG's turned on for many years. And it's all for Malaysia's Prime Minister, Dr Mahathir Mohamad, the region's elder statesman and Australia's fiercest critic. SIR MICHAEL SOMARE, PNG PRIME MINISTER: He speaks his mind, he knows what he's talking about and he stands by what he says. It's a visit rich in symbolism and politics. The welcome is far more lavish than that laid on for Australia's John Howard last year. Dr Mahathir will retire at the end of this week and this is his last ever state visit. SIR MICHAEL SOMARE: What I admire about him, he is a person who stand up for the underdogs. When I say about the underdogs, I mean the people of the developing countries - South-East Asia, Pacific and the other countries of the world who are, you know, who are at the disadvantage of the developed world. Sir Michael Somare is PNG's founding father. His face adorns the currency, and he's now back in power 28 years after becoming the nation's first prime minister. He's also approaching the end of his political career. SIR MICHAEL SOMARE: Love the old guards. I'm one of the few and him and a few of the others, the Frasers have gone and the Hawkes have gone and... Dr Mahathir steps down with his nation and one of the region's success stories, a largely harmonious country with a vibrant economy. But Sir Michael is wrestling with financial problems, deteriorating law and order and chronic political instability. Critics say that PNG is in deep trouble. The welcome is not entirely without protest. Conservationists are also speaking their mind over Dr Mahathir's visit. They're concerned about Malaysian logging companies and a quiet protest is made by the Jewish community. This Israeli flag was displayed briefly. Dr Mahathir has brought with him 200 people in four jets, including five cabinet ministers and scores of high-powered Malaysian businessmen. After Australia, Malaysia is PNG's second largest trading partner, and Sir Michael is clearly flattered by the size of Dr Mahathir's entourage. REPORTER: What do you think that says to Australia? Do you think that there's any - there should be any disquiet about that? SIR MICHAEL SOMARE: Well, it is for the Australians to make their own judgment. It's not for me to say. I would also treat the Australians the same way, if they have a large contingent of industrialists and business people coming up with three or four of their own aircraft to come and see Papua New Guinea, I welcome them in the same way. I put on the same red carpet. Later that evening, it's a state dinner for Dr Mahathir. On hand are PNG's political elite, including former prime ministers, Sir Mekere Moruata and Bill Skate. The Australian Government contingent normally turn out in large numbers for these events, but tonight, they're almost invisible. Sir Michael continues his public praise of Dr Mahathir. SIR MICHAEL SOMARE: You earned for yourself an honour of being the spokesman of the underdogs of the world. You were and continue to be critical of blind imposition of values developed and marketed by the developed countries, particularly the super power, to assert their domination in the world. And although Australia isn't referred to by name, its current attempts to impose good governance on Papua New Guinea doesn't escape mention. SIR MICHAEL SOMARE: We are led to accept someone's perception of good governance, even when that someone refuses to accept that it took him over 100 years or 200 years to achieve what they are now enjoying, while it requires us to achieve it in one or two years, or three years. And in contrast to Australia's provocative plans to assist PNG, which includes sending police and top public servants to closely monitor the government, Dr Mahathir makes a more low key offer to help. DR. MAHATHIR MOHAMMUD, MALAYSIAN PRIME MINISTER: I have also noted that your government has introduced various measures and reform packages aimed at stimulating the economy and to create an efficient and durable development plan. If we can be of any help, we would be happy to do so. PNG's leaders are far more receptive to this softly, softly approach, especially from Dr Mahathir, who has personally taken his nation from a third world backwater to a modern industrial economy. The morning after, and Malaysian businessmen are networking in the hotel lobby. REPORTER: It has been a success? MALAY BUSINESSMAN: Very successful visit. REPORTER: Are you optimistic about increasing trade between PNG and Malaysia? MALAY BUSINESSMAN: We are. REPORTER: What sort of forms will that trade take, do you think? MALAY BUSINESSMAN: Basically we are looking at development of a number of national resources, namely the fishing, the oil and gas industry. BUSINESSMAN: The PNG people have to come up with their own, their own system that suit them, that benefit them, where sometimes when foreigners come they see things differently probably because they brought in their own templates... REPORTER: Australia? BUSINESSMAN: ..thinking that it will fit for PNG. REPORTER: Australia? BUSINESSMAN: Yeah PNG are seizing the opportunity to cut as many deals as possible. REPORTER: How hopeful are you for more business from Malaysia? Do you think that's possible? BUSINESSMAN 3: I'm not hopeful, I'm confident, they're already here. And the Prime Minister's visit is just confirmation of the future. The Malaysian trade authority has organised a seminar to match Malaysian investors with PNG businessmen. Malaysia is not yet wealthy enough to offer aid to PNG. The relationship is based firmly on trade and it's growing fast. PNG's northern neighbour is widely believed to be a committed partner here, but there's deep ambivalence about Australia. Bernard Narakobi is a former parliamentary speaker and attorney-general. BERNARD NARAKOBI, FORMER ATTORNEY GENERAL: There is a very strong perception that the Australian Government is not that committed to PNG, and that it's probably more committed to the European stock, if you like, communities like America, like England and Europe, generally. This view was very much the topic of conversation at this high-powered lunch. Controversial former Prime Minister Bill Skate is talking to Sir Michael Somare. Dr Mahathir is only too willing to provide examples of how local businessmen can make good on their own. DR. MAHATHIR MOHAMMUD: We came here as coolie labourers. Well, it's the same in Malaysia. One of the most successful men, Lim Goh Tong, he came as a labourer, he is now a billionaire. But despite Malaysia's businessmen descending on PNG, it seems Australia is less concerned with fostering trade and more concerned about having a so-called failed state on its doorstep. That notion riles Sir Michael. SIR MICHAEL SOMARE: Downer especially, your Foreign Minister, about the aid when he says that, you know, we're a weak state, we can't even administer our - and that's why I was cross, I was angry and I came out and I said, "Look, if you want to take the aid, you take the aid away from us." In Port Moresby, they call it "boomerang aid" and believe much of it ends up paying Australian consultants and Australian companies. REPORTER: Do you think it's illusory, the size of the Australian aid budget. People talk about boomerang aid, coming up and going back again? SIR MICHAEL SOMARE: Yes, I've been saying it, I've been saying it all along. We only spend - 20% of it is spent here. Almost 80% goes back to Australia. Downer admitted that and if Downer has admitted it, Australian taxpayers now have to ask the Australian Government, don't ask me. Dr Mahathir was invited to address PNG's cabinet. These ministers have been working on a plan to wean their nation off Australia's largesse, especially now that the aid comes with strings attached. It's a mark of the deep concern here about the Australian officials and police who'll soon be arriving to keep an eye on the aid money. Sir Michael is diplomatic about what many in his country are calling Australia's neo-colonialism. SIR MICHAEL SOMARE: I, personally, I had my reservations about the type of concept, but when it was explained to us that they they are talking about support staff, not to take over the administration and become the heads of departments or heads of police, or deputised for a police commissioner or defence commander, no -that we would not accept. Bernard Narakobi is less constrained by diplomacy and he sounds a warning. Australian should not consider a Solomons-style intervention. BERNARD NARAKOBI: Sending 200 policemen to patrol the streets, I think it's a bit cheap. I don't think that's required, but I think it would be a lot difficult, a lot harder for Australia to try and mount anything like that in this country because it will be working against the whole community. While Canberra is worried about how PNG manages aid, Sir Michael's concern is that his people are discriminated against and don't get a chance to manage it, at all. SIR MICHAEL SOMARE: Here you are Australia has trained a lot of our people through our universities. And some of them are out there on the field, have small construction companies and these people were trained by Australians. And the same kind of education that you get in Australia, you get up here and you get two contracts - you get a young civil engineer or two civil engineers who have got a construction company - they miss out on the contract because someone who has been living here, apparently being an Australian, living resident of Hagen for years or living in Medang for years, he gets a preference over a well educated Papua New Guinean engineer who has got a construction engineering company. Now, do you think it's fair? The idea of standing up for the underdog is what cements the relationship between Somare and Mahathir. It's also what's fuelled Dr Mahathir's long running tirade against Australia. At this press conference, he doesn't waste another opportunity to put the boot in, to the obvious enjoyment of Michael Somare. DR. MAHATHIR MOHAMMUD: We have fairly good relation with Australia, but Australian politicians are very fond of passing unwelcome remarks, and that of course rubs us the wrong way and we respond likewise. If they cease to assume that we do not know how to run our country, and that they know better, then we will have to tell them that we know how to run our country and we don't think they know how to run their country. That's my response to... because we are all sinners, you know, there is no perfect men in this world and don't go around assuming that you know everything and other people don't know anything. SIR MICHAEL SOMARE: In politics, no-one thank you, no-one thank you for politics and I think it would be a good now to get away from the cameras and I'm sure that he will enjoy his retirement and I want to say, on behalf of people of Papua New Guinea, bid him a good farewell, him and his family and I'm wishing him every success in his retirement. Thank you. While the two leaders are obviously close, it's clear that Sir Michael is able to play Malaysia off against Australia to his advantage. SIR MICHAEL SOMARE: I don't want to frighten you. REPORTER: Good afternoon, Prime Minister. No matter where the money's coming from, PNG's leader believes he knows how to run his country, but wishes he'd been in office as long as Dr Mahathir in order to achieve the same results. SIR MICHAEL SOMARE: I had a planning system for 20 years, but because of constant change of governments, new governments come in, they have their alternative policies, they had to put all our planning process and other things at the back of their own. So constant changes is not very good for a country. As the two countries shook hands on a cooperation agreement, there was a development that's received little or no coverage. Like Australia, Malaysia has now offered its own financial advisers to help PNG through these difficult times. It's an offer that PNG is seriously considering, and true to form, Dr Mahathir's offer is sure to irritate Canberra. Dr Mahathir's visit was all about shoring up his vision for the region. While he departs the political stage this week, he's determined as ever that his neighbour will look north for support, rather than towards the south and former colonial masters. Papua New Guinea has heard his message loud and clear. But for Sir Michael, there's only limited time left to bring about change. He too won't be on the political stage for much longer. SIR MICHAEL SOMARE: I see myself as going out, going out and this is my last term and I made my commitment that I will be going out, but I would like to see that, you know, let more more room open for trade. Well, I would like to be able to see that the Papua New Guinea in my period, hopefully we will set a good pace for country to be economically independent. Economic independence has been the dream of all the country's leaders since independence but none have been able to achieve it.
It's 12:30 last Friday at Port Moresby's international airport. This is the biggest state welcome that PNG's turned on for many years. And it's all for Malaysia's Prime Minister, Dr Mahathir Mohamad, the region's elder statesman and Australia's fiercest critic. SIR MICHAEL SOMARE, PNG PRIME MINISTER: He speaks his mind, he knows what he's talking about and he stands by what he says. It's a visit rich in symbolism and politics. The welcome is far more lavish than that laid on for Australia's John Howard last year. Dr Mahathir will retire at the end of this week and this is his last ever state visit. SIR MICHAEL SOMARE: What I admire about him, he is a person who stand up for the underdogs. When I say about the underdogs, I mean the people of the developing countries - South-East Asia, Pacific and the other countries of the world who are, you know, who are at the disadvantage of the developed world. Sir Michael Somare is PNG's founding father. His face adorns the currency, and he's now back in power 28 years after becoming the nation's first prime minister. He's also approaching the end of his political career. SIR MICHAEL SOMARE: Love the old guards. I'm one of the few and him and a few of the others, the Frasers have gone and the Hawkes have gone and... Dr Mahathir steps down with his nation and one of the region's success stories, a largely harmonious country with a vibrant economy. But Sir Michael is wrestling with financial problems, deteriorating law and order and chronic political instability. Critics say that PNG is in deep trouble. The welcome is not entirely without protest. Conservationists are also speaking their mind over Dr Mahathir's visit. They're concerned about Malaysian logging companies and a quiet protest is made by the Jewish community. This Israeli flag was displayed briefly. Dr Mahathir has brought with him 200 people in four jets, including five cabinet ministers and scores of high-powered Malaysian businessmen. After Australia, Malaysia is PNG's second largest trading partner, and Sir Michael is clearly flattered by the size of Dr Mahathir's entourage. REPORTER: What do you think that says to Australia? Do you think that there's any - there should be any disquiet about that? SIR MICHAEL SOMARE: Well, it is for the Australians to make their own judgment. It's not for me to say. I would also treat the Australians the same way, if they have a large contingent of industrialists and business people coming up with three or four of their own aircraft to come and see Papua New Guinea, I welcome them in the same way. I put on the same red carpet. Later that evening, it's a state dinner for Dr Mahathir. On hand are PNG's political elite, including former prime ministers, Sir Mekere Moruata and Bill Skate. The Australian Government contingent normally turn out in large numbers for these events, but tonight, they're almost invisible. Sir Michael continues his public praise of Dr Mahathir. SIR MICHAEL SOMARE: You earned for yourself an honour of being the spokesman of the underdogs of the world. You were and continue to be critical of blind imposition of values developed and marketed by the developed countries, particularly the super power, to assert their domination in the world. And although Australia isn't referred to by name, its current attempts to impose good governance on Papua New Guinea doesn't escape mention. SIR MICHAEL SOMARE: We are led to accept someone's perception of good governance, even when that someone refuses to accept that it took him over 100 years or 200 years to achieve what they are now enjoying, while it requires us to achieve it in one or two years, or three years. And in contrast to Australia's provocative plans to assist PNG, which includes sending police and top public servants to closely monitor the government, Dr Mahathir makes a more low key offer to help. DR. MAHATHIR MOHAMMUD, MALAYSIAN PRIME MINISTER: I have also noted that your government has introduced various measures and reform packages aimed at stimulating the economy and to create an efficient and durable development plan. If we can be of any help, we would be happy to do so. PNG's leaders are far more receptive to this softly, softly approach, especially from Dr Mahathir, who has personally taken his nation from a third world backwater to a modern industrial economy. The morning after, and Malaysian businessmen are networking in the hotel lobby. REPORTER: It has been a success? MALAY BUSINESSMAN: Very successful visit. REPORTER: Are you optimistic about increasing trade between PNG and Malaysia? MALAY BUSINESSMAN: We are. REPORTER: What sort of forms will that trade take, do you think? MALAY BUSINESSMAN: Basically we are looking at development of a number of national resources, namely the fishing, the oil and gas industry. BUSINESSMAN: The PNG people have to come up with their own, their own system that suit them, that benefit them, where sometimes when foreigners come they see things differently probably because they brought in their own templates... REPORTER: Australia? BUSINESSMAN: ..thinking that it will fit for PNG. REPORTER: Australia? BUSINESSMAN: Yeah PNG are seizing the opportunity to cut as many deals as possible. REPORTER: How hopeful are you for more business from Malaysia? Do you think that's possible? BUSINESSMAN 3: I'm not hopeful, I'm confident, they're already here. And the Prime Minister's visit is just confirmation of the future. The Malaysian trade authority has organised a seminar to match Malaysian investors with PNG businessmen. Malaysia is not yet wealthy enough to offer aid to PNG. The relationship is based firmly on trade and it's growing fast. PNG's northern neighbour is widely believed to be a committed partner here, but there's deep ambivalence about Australia. Bernard Narakobi is a former parliamentary speaker and attorney-general. BERNARD NARAKOBI, FORMER ATTORNEY GENERAL: There is a very strong perception that the Australian Government is not that committed to PNG, and that it's probably more committed to the European stock, if you like, communities like America, like England and Europe, generally. This view was very much the topic of conversation at this high-powered lunch. Controversial former Prime Minister Bill Skate is talking to Sir Michael Somare. Dr Mahathir is only too willing to provide examples of how local businessmen can make good on their own. DR. MAHATHIR MOHAMMUD: We came here as coolie labourers. Well, it's the same in Malaysia. One of the most successful men, Lim Goh Tong, he came as a labourer, he is now a billionaire. But despite Malaysia's businessmen descending on PNG, it seems Australia is less concerned with fostering trade and more concerned about having a so-called failed state on its doorstep. That notion riles Sir Michael. SIR MICHAEL SOMARE: Downer especially, your Foreign Minister, about the aid when he says that, you know, we're a weak state, we can't even administer our - and that's why I was cross, I was angry and I came out and I said, "Look, if you want to take the aid, you take the aid away from us." In Port Moresby, they call it "boomerang aid" and believe much of it ends up paying Australian consultants and Australian companies. REPORTER: Do you think it's illusory, the size of the Australian aid budget. People talk about boomerang aid, coming up and going back again? SIR MICHAEL SOMARE: Yes, I've been saying it, I've been saying it all along. We only spend - 20% of it is spent here. Almost 80% goes back to Australia. Downer admitted that and if Downer has admitted it, Australian taxpayers now have to ask the Australian Government, don't ask me. Dr Mahathir was invited to address PNG's cabinet. These ministers have been working on a plan to wean their nation off Australia's largesse, especially now that the aid comes with strings attached. It's a mark of the deep concern here about the Australian officials and police who'll soon be arriving to keep an eye on the aid money. Sir Michael is diplomatic about what many in his country are calling Australia's neo-colonialism. SIR MICHAEL SOMARE: I, personally, I had my reservations about the type of concept, but when it was explained to us that they they are talking about support staff, not to take over the administration and become the heads of departments or heads of police, or deputised for a police commissioner or defence commander, no -that we would not accept. Bernard Narakobi is less constrained by diplomacy and he sounds a warning. Australian should not consider a Solomons-style intervention. BERNARD NARAKOBI: Sending 200 policemen to patrol the streets, I think it's a bit cheap. I don't think that's required, but I think it would be a lot difficult, a lot harder for Australia to try and mount anything like that in this country because it will be working against the whole community. While Canberra is worried about how PNG manages aid, Sir Michael's concern is that his people are discriminated against and don't get a chance to manage it, at all. SIR MICHAEL SOMARE: Here you are Australia has trained a lot of our people through our universities. And some of them are out there on the field, have small construction companies and these people were trained by Australians. And the same kind of education that you get in Australia, you get up here and you get two contracts - you get a young civil engineer or two civil engineers who have got a construction company - they miss out on the contract because someone who has been living here, apparently being an Australian, living resident of Hagen for years or living in Medang for years, he gets a preference over a well educated Papua New Guinean engineer who has got a construction engineering company. Now, do you think it's fair? The idea of standing up for the underdog is what cements the relationship between Somare and Mahathir. It's also what's fuelled Dr Mahathir's long running tirade against Australia. At this press conference, he doesn't waste another opportunity to put the boot in, to the obvious enjoyment of Michael Somare. DR. MAHATHIR MOHAMMUD: We have fairly good relation with Australia, but Australian politicians are very fond of passing unwelcome remarks, and that of course rubs us the wrong way and we respond likewise. If they cease to assume that we do not know how to run our country, and that they know better, then we will have to tell them that we know how to run our country and we don't think they know how to run their country. That's my response to... because we are all sinners, you know, there is no perfect men in this world and don't go around assuming that you know everything and other people don't know anything. SIR MICHAEL SOMARE: In politics, no-one thank you, no-one thank you for politics and I think it would be a good now to get away from the cameras and I'm sure that he will enjoy his retirement and I want to say, on behalf of people of Papua New Guinea, bid him a good farewell, him and his family and I'm wishing him every success in his retirement. Thank you. While the two leaders are obviously close, it's clear that Sir Michael is able to play Malaysia off against Australia to his advantage. SIR MICHAEL SOMARE: I don't want to frighten you. REPORTER: Good afternoon, Prime Minister. No matter where the money's coming from, PNG's leader believes he knows how to run his country, but wishes he'd been in office as long as Dr Mahathir in order to achieve the same results. SIR MICHAEL SOMARE: I had a planning system for 20 years, but because of constant change of governments, new governments come in, they have their alternative policies, they had to put all our planning process and other things at the back of their own. So constant changes is not very good for a country. As the two countries shook hands on a cooperation agreement, there was a development that's received little or no coverage. Like Australia, Malaysia has now offered its own financial advisers to help PNG through these difficult times. It's an offer that PNG is seriously considering, and true to form, Dr Mahathir's offer is sure to irritate Canberra. Dr Mahathir's visit was all about shoring up his vision for the region. While he departs the political stage this week, he's determined as ever that his neighbour will look north for support, rather than towards the south and former colonial masters. Papua New Guinea has heard his message loud and clear. But for Sir Michael, there's only limited time left to bring about change. He too won't be on the political stage for much longer. SIR MICHAEL SOMARE: I see myself as going out, going out and this is my last term and I made my commitment that I will be going out, but I would like to see that, you know, let more more room open for trade. Well, I would like to be able to see that the Papua New Guinea in my period, hopefully we will set a good pace for country to be economically independent. Economic independence has been the dream of all the country's leaders since independence but none have been able to achieve it.