Pacific isles potential terrorist haven, says Goff

1.00pm

Small Pacific island countries are potential havens for terrorists because of lax security and immigration systems, a Pacific leader and New Zealand Foreign Affairs minister Phil Goff are warning.

Cook Islands Prime Minister Robert Woonton has told The Australian newspaper that small Pacific nations were the "soft belly" of the war on terrorism because of a lack of computerised passport records and archaic security systems.

"It may be happening already and unless we address security it will become a real problem."

Mr Goff said money launderers and organised criminals had already eyed vulnerable Pacific islands for their activities, and while they did not believe terrorists were operating now, the potential could not be ruled out.

"The same situation appeals to both groups... they're both looking for more opportunities," Mr Goff's spokesman said today.

Terrorism, along with organised crime, was becoming increasingly global and perpetrators were seeking opportunities further afield.

"We've noticed because they're based in Europe or the Middle East it doesn't mean that the Pacific might not represent an opportunity for them," the spokesman said.

Australia and New Zealand are working alongside the Pacific region to tighten security and border control systems, Mr Goff said.

New Zealand is organising a counter-terrorism seminar for Pacific Island officials next month, focusing on tough new requirements for passenger travel and trade instigated by the United States.

Last year's budget allocated $2 million for a new Pacific security fund to boost aviation security, customs, immigration and forensic equipment to identify fraudulent travel documents and visas.

New Zealand was also working with Pacific police forces to help them combat drug trafficking and people smuggling.

The tiny Pacific nation of Nauru came under scrutiny during the 90s, when it acted as a money-launderer for the Russian mafia. The tax haven filtered an estimated $107 billion through 400 offshore banks, all registered to a single Nauru government mailbox.

It also sold its passports to non-citizens.

Nauru has since closed down the banks and says it no longer sells passports.

The 21sq km nation of just 12,000 people is now paid by the Australian government to house asylum-seekers in detention centres.

It has been on the verge of bankruptcy after nearly a century of phosphate strip mining left it a nation of bleached coral pinnacles.

After the September 11, 2001, attacks, Washington raised fears Nauru could be a terrorist conduit and pressured it to close its offshore banking and passport-selling operations.

Mr Goff is currently in the United States, attending a private wedding in Los Angeles, after meeting US Secretary of State Colin Powell last week to discuss New Zealand's role in Iraq.

- NZPA