Strangers in strange Nauru wasteland

The refugees are scarred people from far-away lands on a scarred, atypical Pacific island. The eyes of the world watch, but locals are kept at a distance, writes ANGELA GREGORY.

Isolated and an ugly duckling among its island neighbours, the tiny Republic of Nauru may see a future for itself as the refugee processing centre of the Pacific.

Its once-lucrative phosphate exports are almost exhausted and the intensive mining has scarred the island, which will struggle to achieve its ambition of becoming a major tourist destination.

But in securing a $A20 million ($24 million) deal with Australia to process asylum seekers, the Nauru Government may have picked an ongoing revenue earner.

A dot on the map of the Pacific Ocean, the 21 sq km island, populated by just 12,000 people, has become a focus of worldwide media attention after agreeing to take ashore most of the more than 600 refugees recently picked up from sinking vessels near Australian waters.

Nauruans turn up in droves to watch the refugees disembark from barges which ferry them to land.

It is their only chance to sight their guests because local people are not allowed to visit the makeshift camp built on a disused sportsground in the barren interior.

At the camp, the refugees try to establish some sort of order to their lives. They play football and volleyball, cut or shave one another's hair, try to learn English from the few who speak it, and pray.

The deal is open-ended and could allow Nauru to take on more refugees in future.

The rewards so far have included $10 million worth of diesel fuel, $3 million worth of new generators, payment of about $2 million in health bills, and assistance to Air Nauru and the Bank of Nauru.

The aid injection is timely for a republic edging towards economic ruin. The island's phosphate, intensively mined since early last century, is expected to run out within the next few years.

Substantial amounts of phosphate income were put into a trust but much has been lost through bad investments and corruption.

Telecom Australia temporarily cut international phone lines this year because of outstanding bills.

While the Australian deal is therefore welcomed in some quarters, many Nauruans express little interest, although a few have criticisms.

A dissident Nauru publication, the Visionary, questions the sense in Nauru's getting involved in helping the refugees, mainly from Afghanistan and Iraq.

The anonymous writers of the free newsletter raise health and security concerns, although so far no problems have arisen from the refugees brought ashore. In fact, their transfer from the Australian warship Manoora has proven a welcome sideshow in the sleepy backwater.

Meanwhile, the influx of Australian Government soldiers and officials, along with United Nations staff, camp security contractors and a phalanx of media representatives, has boosted the local economy.

Hotels, restaurants and shops are the obvious beneficiaries along with enterprising locals who have hired out their vehicles for up to $1000 a week.