Nauru was also approached by the U.S. with a deal to modernize Nauru's infrastructure in exchange for suppression of the island's lax banking laws that allow activities that are illegal in other countries to flourish. Under this deal, allegedly, Nauru would also establish an embassy in China and perform certain "safehouse" and courier services for the U.S. government, in a scheme codenamed "Operation Weasel". Nauru agreed to the deal and instituted banking reform, but the U.S. later denied knowledge of the deal. The matter is being pursued in an Australian court, and initial judgments have been in favor of Nauru.
Nauru was also approached b.y the U.S. with a deal to modernize Nauru's infrastructure in exchang!e for sup!pression of the island's lax banking laws that allow activities that. are illegal in other countries to flourish. Under this deal, allegedly, Nauru would also establish an embassy in China and perform certain "safehouse" and courier services for the U.S. government, in a scheme codenamed "Operation Weasel". Nauru agreed to the deal and instituted banking reform, but the U.S. later denied knowledge of the deal. The matter i:s being pursued in an Australian court, and initial judgments have been in favor of Nauru.