PNG and Australia work to resolve Bougainville rift

10:19 am on 26 May 2015

Papua New Guinea's Prime Minister says a misunderstanding caused a diplomatic row with Australia over its proposal to set up a post in Bougainville, and it was being resolved.

The newspaper, The National, reports that Peter O'Neill met with Australia's foreign minister, Julie Bishop, on the sidelines of the PALM 7 meeting in Japan at the weekend, where he says the issue was discussed.

Papua New Guinea Prime Minister Peter O'Neill.

Papua New Guinea Prime Minister Peter O'Neill. Photo: RNZI / Johnny Blades

When Canberra's plan to open a mission in Buka was announced in the Australian budget two weeks ago, Peter O'Neill reacted angrily, saying it had been done without consultation with PNG.

The government then banned Australians travelling to the autonomous region on short-term entry visas.