The Minister for Foreign Affairs, Mr Alexander Downer has welcomed a joint statement issued on June 18 by the PNG National Government and Bougainville leaders that they are very close to concluding a comprehensive political settlement for the island.

The settlement will soon be put to the National Executive Council for endorsement.

"This progress comes at the conclusion of several weeks of intense negotiations on the legal and political framework within which the autonomous Bougainville Government will be established and operate," Mr Downer said.

"I understand that text of the agreement on the arrangements for autonomy is now being finalised.

"Together with the earlier agreements on January 26 this year on Bougainville's future political status and the agreement on May 9 on plans for the disposal of weapons, an agreement on autonomy will represent the major concluding step in the process of finalising an overall political settlement for Bougainville.

"I congratulate the leaders of the delegations engaged in the negotiations for the patience and flexibility that has enabled such impressive progress in the first six months of 2001.

"I also acknowledge the key role played by many ex-combatants who have been present in Port Moresby during the negotiations over the past few weeks."

Mr Downer said Australia has long maintained that she will support any agreement v that is negotiated by the parties.

"It is immensely satisfying to see that the many months of negotiations are now on the verge of producing an agreement that is for the common good of Papua New Guinea.

"Australia will continue to support the peace process in Bougainville," Mr Downer said.

The RAN has regularly deployed a ship to Bougainville to provide logistical support to the multi-national peace monitors working on the island.

The work done by MSA BANDICOOT has been particularly outstanding to the point where she won the 2000 Kelly Shield in the minor war vessels category.