American charge d'affaires James Carouso told the ABC's AM program that the three countries were putting in a counter offer to wrest the cable contract which had been awarded to Huawei.
He said it was not a case of being against Chinese participation in such a project, but rather of providing a competitive option.
According to a report in The National, a PNG newspaper, on 10 August, the financing for the PNG Kumul domestic submarine cable project is being provided by the Exim Bank of China.
The Kumul cable will run from Port Moresby to Alotau, Popondetta, Lae and Madang, with the cost being about US$200 million.
The Coral Sea cable was awarded to Vocus after the intervention of the spy agency, the Australian Secret Intelligence Service. It will link PNG and the Solomons to Sydney.
In July 2017, it was reported that Australia was putting pressure on the Solomon Islands to withdraw from the project after the contract was awarded to Huawei.
Security concerns were said to be the reason why Australian officials had made the request which was, tellingly, conveyed to then Solomon Islands Prime Minister Manasseh Sogavare by Nick Warner, the director-general of the spy agency ASIS.
iTWire has contacted Huawei for comment.
Thanks to The Register for the links