The Australian foreign minister, Alexander Downer, will today fly to Papua New Guinea for top-level talks about the future of Australia's 200 million US dollar-a-year aid programme.
The trip had been delayed after PNG Prime Minister Sir Michael Somare took offence at Australia's announcement that it would link aid to stronger corporate government and moves to crack down on corruption.
The Australian prime minister, John Howard, said his government had adopted a firmer policy, requiring an absence of corruption in return for a maintenance of aid because Australians deserved to get a return on their money.
But Mr Downer has told parliament he is satisfied with the way Ausaid is managing its programmes.
"While happy to conduct a joint review of the Development Cooperation Treaty our concerns are not about the way the current aid programme is managed."
Meanwhile, speaking on PNG's national day, the prime minister, Sir Michael Somare, has called on the country to become more self-reliant.
