News from Papua New Guinea

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  The Age (Melbourne) Friday 21 March 1997

                                                        Chan bows to pressur=
e

                                                        By LINDSAY MURDOCH,
                                                        Port Moresby, Thursd=
ay

                                                        Papua New Guinea's
Prime Minister, Sir Julius Chan, tonight
                                                        suspended plans to
use mercenaries in the fight against
                                                        Bougainville rebels
after another day of looting, rioting and
                                                        shooting in Port
Moresby.

                                                        In a bold attempt
to restore order and hold on to power, Sir Julius
                                                        ordered an inquiry
into the $A48million mercenaries contract with
                                                        British-based
Sandline International.

                                                        Sir Julius said the
contract would be suspended until the inquiry
                                                        was completed in
two weeks.

                                                        He said the
inquiry, to be headed by a National Court judge,
                                                        indicated that the
Government had ``listened to the wishes of the
                                                        people''.

                                                        The concession came
after another day of violence in Port
                                                        Moresby, during
which at least four people were shot, three
                                                        reportedly wounded
by rubber bullets fired by police during
                                                        outbreaks of
looting and rioting. A soldier was among those
                                                        injured.

                                                        Earlier, an
Australian delegation sent to PNG by the Prime
                                                        Minister, Mr John
Howard, met Sir Julius for more than four
                                                        hours in an attempt
to end the crisis.

                                                        Meanwhile, the
sacked military chief Brigadier-General Jerry
                                                        Singirok tonight
intensified his attacks on Sir Julius, accusing him
                                                        of approving a plan
for mercenaries to inflict mass destruction on
                                                        Bougainville with
weapons including missiles fired from gunships.

                                                        Revealing for the
first time details of the mercenary plan, General
                                                        Singirok said he
could not live with the death and destruction that
                                                        was aimed at a
population that included women and children. He
                                                        said the plan was
for bombing runs across Bougainville.

                                                        The revelations
came amid a stepped-up political campaign against
                                                        Sir Julius being
led by opposition politicians, community groups
                                                        and students.

                                                        Three of Sir
Julius' senior ministers were meeting with military
                                                        chiefs late tonight
in an attempt to reach a deal that would end the
                                                        military revolt.

                                                        Sources said one of
the main points for negotiation would be the
                                                        possibility of
dissolving the Government ahead of mid-year
                                                        elections.

                                                        Police fired
tear-gas and bullets into crowds of protesters taking
                                                        refuge in the
grounds of the military headquarters in Port Moresby
                                                        today, sparking an
angry confrontation that came close to a
                                                        shoot-out between
police and soldiers.

                                                        As several people
were injured by rubber bullets, one man lost one
                                                        of his hands when
it was chopped off by a supermarket security
                                                        guard armed with a
machete. The man reached into a store to steal
                                                        something.

                                                        Authorities said
tonight they were unable to control the street
                                                        violence, which for
the second successive day forced police to use
                                                        tear-gas and fire
shots at trouble-makers.

                                                        The Australian
Government was today presented with a petition
                                                        from several
non-government organisations in PNG asking it to
                                                        assist with Sir
Julius' resignation and to offer him political asylum.

                                                        PNG's military sent
a second petition to Sir Julius demanding the
                                                        immediate
reinstatement of General Singirok and a royal
                                                        commission of
inquiry into the mercenary affair.

                                                        In Johannesburg,
Executive Outcomes, the South African company
                                                        involved in the
Bougainville operation, said all its men were out of
                                                        PNG.





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