Australia Cuts Foreign Aid Except For Cambodia; Allots $80 Million In Expanded MH370 Search

Australia’s foreign aid to Indonesia will be cut 40 percent from $542.5 million to $323 million. Australian Treasurer Joe Hockey was quick to say the cut is not retribution for Indonesia’s Bali Nine executions since aid to other countries is also reduced.

The $1 billion reduction in Australia’s aid for the next financial year was announced in the previous mid-year economic and fiscal outlook. Aside from Indonesia, Australia will also cut aid for the Philippines, Vietnam and Burma. Aid for Africa and the Middle East will be reduced by nearly 75 percent from $143 million to $52.9 million.

Australia’s total aid for east Asia has been reduced from $1.08 billion to $688.6 million. The budget revealed more than 90 percent of the country’s foreign assistance will be for the Indo-Pacific region. Cambodia, with whom the Australian government has negotiated a refugee resettlement program, was the only country that has the same foreign aid budget of $52.4 million.

Following the Bali Nine executions, Australia has recalled its ambassador to Indonesia for “consultations” but Hockey said the reduction in aid was not an act of retribution. “There wasn’t any specific targeting of any country at all, it was all done with a formula,” said the treasurer.

Meanwhile, an expanded search for the missing Malaysia Airlines Flight MH370, which is missing for more than a year, is expected to cost Australia $80 million. The Australian government has allocated $50 million for the search in 2015-2016 and expected an equal contribution from Malaysia, reports news.com.au.

The first stage of the search has already cost Australia $30 million and covers an area of 60,000 square kilometres. Malaysia has initially contributed $29.6 million. Earlier in the month, preparations were underway to ensure the search for MH370 continues through the winter.

Australia’s Joint Agency Coordination Centre said officials had decided to suspend drone operations during the winter but plans had been changed so the search can continue in an expanded area of 120,000 square kilometres. The JACC added that the safety of the search crew remains a priority, reports The Guardian.

About 75 percent of the ocean floor has been searched and authorities have warned that the aircraft might not be recovered even if its location is known. Neil Hansford, an aviation expert, said in March that there was no guarantee the plane could be brought to the surface if discovered.

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