"I'm not sure that I would say HIV/AIDS is a direct contributor to terrorism but of course it's a contributor to social instability, to economic breakdown and that in turn . . . inevitably does lead to conflict in societies and out of that can come many other problems, including terrorism," he said.

Attitudes in PNG towards AIDS were hindering efforts to stem its spread, Mr Downer said.

Mr Downer announced a $3 million funding round under the Federal Government's HIV/AIDS Partnerships Initiative, which is aimed at reducing the spread of the disease in the Asia-Pacific.