16 killed in late Jan, early Feb tribal violence in Southern Highlands Province, Port Moresby outskirts; violence reportedly related to land disputes over liquefied natural gas project under construction. Local media said 300 armed villagers clashed with police near project 6 Feb; no reported casualties.

Government declared state of emergency in energy-rich Southern Highlands province. PM Somare said troops deployed to restore law, order and good governance in province after suspending provincial administration for alleged corruption.

Australian police to return to PNG as part of revived aid package, but will not have frontline duties, avoiding immunity issue that stalled program in May. Opposition leader Peter O’Neill arrested on charges of conspiracy an misappropriation connected to alleged involvement in defrauding investment fund.

Former Bougainville rebel leader Francis Ona - advocate of complete independence - died 24 July, possibly aiding island reconciliation. PM Michael Somare declared desire to sever country’s “umbilical cord” of dependence on Australia.

Australia remained committed to suspended Enhanced Cooperation Program, but will not drop insistence PNG amend its constitution to allow Australian police immunity from PNG law and prosecution. Presidential election held successfully in autonomous Bougainville region.

Australian police, part of program to address growing lawlessness, withdrawn after Supreme Court decided visitors’ legal immunity unconstitutional. 60 reported killed in tribal fight in Western Highlands 27 May.

Ombudsman Commission started legal action to force Somare government to recall parliament adjourned in January (to avoid vote of no confidence).

PM Sir Michael Somare awaits ombudsman’s decision on validity of January parliament adjournment (to escape vote of no confidence). Only 8 out of 300 Australian police and civil servants deployed as part of program to address growing lawlessness - further deployment delayed by parliamentary hiatus.

Legality of 5-month adjournment of parliament questioned by ombudsman. Government adjourned parliament to escape vote of no confidence after failing to amend constitution. Deployment of 300 Australian police and civil servants to address growing lawlessness as condition of Australian aid program to take place within weeks.

Arrangements finalised 11 December at bilateral summit for Australia to deploy around 300 police, judges and administrators to address growing lawlessness, as condition of U.S.$220 million Australian aid program. Draft constitution, proposed by Bougainville leaders to resolve final status of semi-autonomous province, being considered by Bipartisan National Committee. Third stage of weapons destruction by Bougainville rebels in progress under auspices of UN-chaired Peace Process Consultative Committee; UN political office to be replaced by smaller observer mission mandated until June 2004 to oversee constitutional process and weapons disposal.