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Nauru marooned after seizure

"This action follows numerous unsuccessful attempts to negotiate a resolution and is now unavoidable in order to protect the interests of US taxpayers."

from a statement by the Export-Import Bank of the United States

The remote Pacific island state of Nauru was searching for a new airlink yesterday after being cut off from the rest of the world by an American bank's seizure of its only aircraft.

"We're looking for replacement capacity, which could come in the form of a new aircraft, or it could come in the form of other airlines assisting us," Air Nauru chief executive Geoff Bowmaker said from his Melbourne base.

"I'm hopeful that by early tomorrow morning we'll be able to resume some flights," Bowmaker said.

The island -- midway between Guam and Fiji -- was so remote that travel by boat to the nearest country with an airline was not feasible, he said.

Air Nauru's sole plane, a Boeing 737-400, was seized by the Export-Import Bank of the United States in Melbourne on Sunday after an Australian court gave the go ahead.

The tiny island, whose people were once among the richest per capita in the world, had failed to make payments on the aircraft since 2002, the bank said.

The bank is the official export credit agency of the US.

The airline had also provided services to the Solomon Islands, the Marshall Islands, Fiji and Australia.

Solomon Islands Prime Minister Sir Allan Kemakeza was among the passengers whose travel plans had been disrupted by the seizure of the aircraft, Australia's national radio network reported.

He had been scheduled to visit Taiwan.

The 7,500 residents of Nauru, a 21km2 coral atoll, were once among the world's wealthiest due to the export of phosphates, mostly from bird droppings.

But the reserves are almost exhausted and with earlier wealth squandered through corruption and mismanagement, the country is virtually bankrupt.

Nauru claimed in court that the US had promised support for aircraft financing in return for its help in gathering foreign intelligence, Australia's AAP news agency reported.

The Washington-based bank said in a statement that it "appreciates the difficulties that the court's decision presents to Air Nauru and the Government of Nauru."

"However, this action follows numerous unsuccessful attempts to negotiate a resolution and is now unavoidable in order to protect the interests of US taxpayers," the bank said.
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