A group of islands near one of Australia’s main shipping routes could be sold off to China in a move concerning security experts.

A Current Affair has reported that retired Australian businessman Ian Gowrie-Smith is placing his group of 21 atolls in Papua New Guinea’s Milne Bay Province for sale.

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The Conflict Islands are closer to the Australian mainland than Sydney is to Melbourne and have the potential to provide navy and airforce footholds just 940 kilometres from Cairns.

In the absence of a national security response from Foreign Affairs Minister Penny Wong, Mr Gowrie-Smith would reluctantly sell to Chinese buyers.

The Department of Foreign Affairs and Trade told A Current Affair in a statement, “Any such sale would be a private commercial transaction and ultimately it is Mr Gowrie-Smith’s decision to sell, and to whom he sells”.

“When are we going to wake up,” Ben Fordham said.

“Penny Wong must stop this sale of the Conflict Islands to China. If she doesn’t, she has failed to protect our national interest.”

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Image: A Current Affair/Getty/Pita Simpson