Australia’s biggest war games will be partly held in Papua New Guinea (PNG) in July, marking a historic departure from previous years.

Papua New Guinea's government has promised not to push ahead with economically unviable infrastructure projects after Australia handed the cash-strapped Pacific nation a $570 million loan.

Richard Marles and his PNG defence counterpart Dr Billy Joseph announced as Canberra tries to get a new defence pact over the line with Australia’s northern neighbour. “Talisman Sabre is the ...