KEY POINTS:
SYDNEY - Papua New Guinea is threatening to slash the aid it receives from Australia in retaliation for the Government's ban on ministerial contact.
PNG has sent a memo to the deputy secretary of the Australian Department of Foreign Affairs, David Ritchie, demanding an explanation for the bans announced after fugitive lawyer Julian Moti fled Port Moresby to the Solomons on a PNG Defence Force plane to avoid extradition to Australia.
The note gives Australia a week to respond and if the response is unsatisfactory, PNG would institute measures to cause problems for Australia's A$300 million ($350.34 million) annual aid to PNG, suspend official visits by Australia entirely, and recall PNG's High Commissioner to Australia.
AAP
