In a bid to encourage local businesses to invest in Taiwan's diplomatic allies, the Executive Yuan may study the possibility of establishing a credit fund to lend money to interested businesses.
"Taiwan's diplomacy needs a complete overhaul. It should be economically, instead of politically, oriented," Day Sheng-tong (戴勝通), chairman of the National Association of Small and Medium Enterprises, told reporters after having a private dinner with Premier Yu Shyi-kun as well as other government officials and industrial leaders in San Jose on Saturday evening.
Day said that at the dinner he proposed the government consider adjusting its diplomacy by teaming up with enterprises, and that the premier expressed support for his idea.
"It's unwise to maintain diplomatic relations by competing with China in the money game," Day said. "We should carefully utilize our limited amount of money and gain the most interest in return."
Day said the government should set up a credit fund to loan money to local businesses interested in investing in diplomatic allies.
"The amount of the fund can be big or small, but the evaluations of potential creditors have to be strict to minimize potential risks," he said.
Day, who pledged to invest US$6 million to open a hat factory in Haiti, said that incentives are very important when it comes to encouraging local businesses to invest overseas.
"Businessmen are smart enough to analyze potential risks and will try their best to minimum their losses. A little bit of an incentive can be very helpful," Day said.
Meanwhile, the premier spent Saturday morning visiting the Panama Canal, a cultural village and the national theater in Panama City.
Yu was scheduled to visit the construction site of the Bridge of Taiwan Friendship yesterday morning. The US$27 million project, will connect Costa Rica's western region of Guanacaste and the Nicoya Peninsula with eastern Guanacaste.
Today Yu will meet the Costa Rican press in the morning and will visit the legislative assembly.
He is scheduled to meet with Costa Rican President Abel Pacheco at noon. The two will hold a press conference in the afternoon.
Yu is due to leave for Belize at 4 pm today.
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