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The Southern Cross Diary: (Australia, New Zealand and the Pacific)

29 0
02.10.2026

The Southern Cross shines over a region that is becoming steadily more important – and more contested. From Canberra and Wellington to Suva, Palau and the smaller island states, the dominant themes throughout September were strategic rivalry, economic uncertainty, climate change, regional security and the growing competition for influence between China and the Western powers.

The Pacific is no longer a peripheral theatre. It has become one of the principal arenas in which the future balance of power in the Indo-Pacific will be shaped.

The Pacific states are not merely pieces on a geopolitical chessboard. Their priorities remain remarkably consistent: climate resilience, economic development, maritime security and sovereignty.

The Pacific states are not merely pieces on a geopolitical chessboard. Their priorities remain remarkably consistent: climate resilience, economic development, maritime security and sovereignty.

1 September: Australia marked the 75th anniversary of the ANZUS Treaty, the security arrangement linking Australia, New Zealand and the United States. Seventy-five years after its signing, ANZUS remains central to Australian defence policy, though it now operates in a vastly different strategic environment from that of the Cold War. The same day saw completion of the East Micronesia Cable Project, a six-country initiative involving Australia, Japan, the United States, the Federated States of Micronesia, Kiribati and Nauru. Valued at approximately A$135 million, including an Australian contribution of about A$65 million, the project underlined the growing importance of digital infrastructure as an instrument of both development and strategic influence.

2 September: Australia’s economy expanded by 0.4 per cent during the June quarter, bringing annual growth to 2.1 per cent. While the result exceeded many forecasts, concerns persisted regarding weak productivity growth, sluggish household spending and continuing pressure on living standards.

Prime Minister Anthony Albanese also announced a A$600 million Pacific security initiative aimed at combating transnational crime, narcotics trafficking and illegal maritime activity. Simultaneously, Australia and the United States unveiled a broader Pacific assistance package valued at approximately US$580 million, including support for energy security and infrastructure projects.

The message from Canberra throughout September........

© Daily Times