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The Sandline affair was a political scandal that became one of the defining moments in the history of Papua New Guinea, and particularly the conflict in Bougainville. It brought down the government of Sir Julius Chan, and brought Papua New Guinea to the verge of a military revolt. The event was named after Sandline International, a United Kingdom-based private military company.
After coming to power in mid-1994, Prime Minister Chan made repeated attempts to resolve the Bougainville conflict by diplomatic means. These were ultimately unsuccessful, due to the repeated failure of Bougainvillean leaders Francis Ona, Sam Kauona and Joseph Kabui to arrive at scheduled peace talks. In November 1994, Chan attempted to set up the Bougainville Transitional Government, under a moderate Bougainvillean, Theodore Miriung. However, this too was doomed to failure, as Ona, Kauona, Kabui and others all chose not to take part. This was the last straw for Chan, and he decided to resolve the conflict using military force.