Sir Julius was born on Tanga Island, New Ireland Province, in 1939. The son of a Chinese trader who married a New Irelander, he became involved in politics in the 60s and founded the People's Progress Party (PPP) in 1968.

Sir Julius served his first term as prime minister from 1980 to 1982 and was re-elected prime minister in 1994 but lost the seat of Namatanai that he had held for 29 years in the 1997 elections.

Many attributed the defeat to the Sandline Affair; when his government contracted international mercenaries in a bid to crush the Bougainville Revolutionary Army.

After the $US36 million deal became public just three months before the poll, the PNG Defence Force revolted, capturing and deporting the mercenaries.

The PNGDF commander, Brigadier General Jerry Singirok, alleged corruption but two subsequent judicial inquiries could find no evidence that Chan was involved in any corrupt dealings.

He allowed his son to stand for his old seat in 2002 while he contested the New Ireland Provincial seat. Byron Chan won but Sir Julius failed to get back into Parliament.