The island of Tulagi served as a South Pacific headquarters for Britain then Japan, and during World War II, and now is about to move into Chinese hands.

The island of Tulagi served as a South Pacific headquarters for Britain then Japan, and during World War II, and now is about to move into Chinese hands. 

Under a secretive deal signed last month, a Beijing-based company has secured exclusive development rights for the entire island and its surroundings. 

The lease agreement has shocked Tulagi residents and alarmed American officials who see the island chains of the South Pacific as crucial to keeping China in check and protecting important sea routes.

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