Panama Canal invitation boosts spirits in Taiwan

Taiwan's foreign ministry yesterday called an invitation from the Panama government to attend the celebration of the US hand-over of the Panama Canal next month "a sign of firm relations between our two countries."

"We are very happy to receive the invitation," said ministry spokesman Henry Chen (3粉坌F).

The invitation is expected to dampen speculation fueled by a series of visits by Panamanian officials to China in recent months that Panama is considering switching diplomatic recognition from Taiwan to China.

Taiwan's Ambassador to Panama, Lan Chih-ming (藍智民), is on the invitation list for the canal handover ceremony along with other diplomatic representatives in Panama, but China's unofficial trade representative in Panama is not.

Panama has invited leaders from member countries of the Organization of American States along with delegations from Japan, France, Egypt and Spain to attend the ceremony, reports said yesterday.

"The handover celebration is going to be more of a regional event," said David Hu (-J正3?/CHINESE>), director of the foreign ministry's Department of Central and South American affairs. "The invitees are leaders from the region and other countries with special ties to the canal."

Panama's foreign minister, Jose Aleman, clarified at a press conference on Tuesday that Japan was invited because of its close commercial ties with the canal, and France was also on the list of invitees because it was one of the countries that had participated in the excavation of the waterway at the beginning of this century. Egypt, he said, was included because the Suez Canal in that country serves a similar function as the one in Panama, and Spanish officials were coming because Spain too had helped in the excavation -- in addition to being the "mother country of the Spanish speaking world."

Hu said he had not received information on whether Hong Kong tycoon Li Ka-shing (李1顫?/CHINESE>), the chairman of Hutchison Whampoa, was invited to the celebration. The Hong Kong conglomerate will take control of the waterway, paying the Panama government US$22.2 million per year in rent for the next 20 years.

Taiwan and the US, mean-while, have become increasingly concerned that China could gain control of the strategically important canal as Li is known to maintain close ties with Beijing leaders.

Taiwan's Evergreen Group also has strong business interests in Panama, operating warehouses and ports on the canal.

The group recently invested US$100 million in a harbor construction project and, along with a nearly completed housing project, the company is also planning to venture into the restaurant business there.

Speculation has been rife recently that Panama may be considering switching diplomatic recognition to China.

The Far Eastern Economic Review recently quoted Panama's representative in Hong Kong, Juan Pablo Pereira, as saying that the country would not close its door on establishing diplomatic ties with China as bilateral economic ties continued to grow.

Panama's foreign minister, Jose Aleman, was quick to dismiss the comments and said that bilateral relations with Taiwan remained firm and friendly.

Minister of Foreign Affairs Jason Hu (-J志強) returned from a trip to Panama and the Dominican Republic on Tuesday.

A reciprocal visit by Aleman is planned in the near future.