The detention centre on the South Pacific island nation of Nauru was based on a Statement of Principles, signed on September 10, 2001 by the President of Nauru, René Harris, and Australia's then Minister for Defence, Peter Reith. The statement opened the way to establish a detention centre for up to 800 people and was accompanied by a pledge of $20 million in development activities. The initial intake was to be people rescued by the MV Tampa (see Tampa affair), with the understanding that they would leave Nauru by May 2002. Subsequently a Memorandum of Understanding was signed on December 11 boosting refugee numbers to 1200 and the promised development activity by an additional $10 million.
Initial plans were for asylum seekers to be housed in modern air-conditioned housing which had been built for the games of the International Weightlifting Federation. This plan was changed after landowners' requests for extra compensation were rejected.
Two camps were then built. The first camp, called "Topside", was at an old sports ground and oval in the Meneng District (0°32′26″S 166°55′47″E / 0.540564°S 166.929703°E / -0.540564; 166.929703 (Camp Topside)). The second camp, called "State House" was on the site of the old Presidential quarters also in the Meneng District (0°32′51″S 166°56′23″E / 0.547597°S 166.939697°E / -0.547597; 166.939697 (Camp State House)).
By July 2005, 32 people were detained in asylum seeker detention in Nauru, consisting of 16 Iraqis, 11 Afghans, 2 Iranians, 2 Bangladeshis and 1 Pakistani. All but two Iraqis were released to Australia, the last group of 25 leaving on November 1, 2005. The remaining two Iraqis stayed in custody for over a year. The last one was finally accepted by an unnamed Scandinavian country after five years in detention, in January 2007. The other was in an Australian hospital at the time, and was later given permission to remain in Australia while his asylum case was being decided. In September 2006, a group of eight Burmese Rohingya men were transferred there from Christmas Island. On March 15, 2007, the Australian Government announced that 83 Sri Lankan Tamil people would be transferred from Christmas Island to the Nauru detention center. They arrived in Nauru by the end of the month.
In December 2007, newly elected Australian Prime Minister Kevin Rudd announced that his country would no longer make use of the Nauru detention center, and would put an immediate end to the "Pacific Solution". The last remaining Burmese and Sri Lankan detainees were granted residency rights in Australia. Nauru reacted with concern at the prospect of potentially losing much-needed aid from Australia.
As of August 2012, Nauru detention centres have been re-opened to process asylum seekers and refugees arriving by boat to Australia. The re-opening of the centres has caused criticism by Australia's Liberal Government after the United Nations refused to assist the government on the mandatory measures. In November 2012, an Amnesty International team visited the camp and described it as "a human rights catastrophe ... a toxic mix of uncertainty, unlawful detention and inhumane conditions".
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