“We’re the largest development partner for Nauru and one of the topics in my meetings with the leaders of Nauru will be how we support them to retain banking services in some form,” Conroy told this masthead.

“This is a challenge throughout the Pacific,and the Australian government is working with banks like Westpac and ANZ,which have a Pacific presence.

“Economic sovereignty is critical to every nation and resolving these banking issues is a key challenge.”

Anthony Bergin,an expert associate at the Australian National University’s National Security College,earlier this month said Nauru’s diplomatic switch was a big win for China and meantAustralia should move quickly to strike a security deal similar to its recent pact with Tuvalu.

Solomon Islandschanged its diplomatic recognition from Taiwan to China in 2019 and sealed adefence agreement with China three years later,sparking a dispute in Australia about whether the Morrison government had seen the deal coming.

The concerns about Nauru,however,have not reached a similar level in part because opinions about the recognition of China are sometimes held by those who have tightened security ties with Australia.

A key figure in Australia’s security agreement with Tuvalu,Finance Minister Seve Paeniu,told Reuters this week that he expected the issue of diplomatic ties with China “will feature once again” after the elections on Friday. Tuvalu recognises Taiwan. Paeniu supportedthe defence agreement with Australia announced last November.

Conroy sent a strong signal that he would discuss a stronger security agreement with Nauru following its diplomatic switch,amid calls on the Australian government to negotiate a deal similar to the one with Tuvalu.

“We’ve already got decades of defence co-operation with Nauru,and we’ve made it very clear that we’re happy to work together to meet Nauru’s security priorities,” he said.

Conroy noted that Nauru was a member of the Pacific Islands Forum and that the regional forum had issued a statement in 2022 that countries should “look to the Pacific first” to fill any gaps in their security.

Timor-Leste approved a plan last November for gas companies Woodside,Timor GAP and Japan’s Osaka Gas to do a concept study on the Greater Sunrise project with a preference for building a liquefied natural gas facility onshore to create local jobs.

Conroy will meet Timor-Leste Prime Minister Xanana Gusmao and noted that his visit to Timor-Leste came after two earlier visits by Foreign Minister Penny Wong.

“The most important thing here is that we turn up and listen and act on their priorities,” Conroy said.

“And we’ve been very public in our support for their economic development and their desire for greater economic resilience,including the development of the Greater Sunrise gasfields.”

Gusmao visited Beijing last September to meet Chinese President Xi Jinping and agree to a “comprehensive strategic partnership”,but he told news agency Nikkei during a visit to Tokyo last month that this did not mean “the door is only open to China and not to other countries” in developing Greater Sunrise.

Cut through the noise of federal politics with news,views and expert analysis from Jacqueline Maley. Subscribers can sign up to our weekly Inside Politics newsletterhere.