The Ministry of Foreign Affairs yesterday confirmed that the government has increased its grant to the Dominican Republic to NT$1.62 billion (US$50 million) amid rising pressure from China to lure away the Caribbean diplomatic ally.
Ministry spokesman Michel Lu (呂慶龍) said that the aid grant formed part of the long-term cooperation projects between the two countries and would be used to contributes to the construction of a science-based industrial park in the Dominican Republic.
The comments came in response to a report in the Chinese-language China Times newspaper yesterday that Dominican President Leonel Fernandez, who visited Taiwan at the end of last month, had announced upon his return to his country that Taiwan had promised US$50 million in donations to the Dominican Republic.
Fernandez also said that his country would restart the stalled negotiations with Taiwan on a bilateral free trade agreement.
Lu said that US$10 million of the total contribution was from a grant Taiwan had promised to its diplomatic ally four years ago, but which had not been appropriated in the absence of a plan from the Dominican government on how to use the grant.
The remaining US$40 million was added after Fernandez was re-elected as president in 2004, Lu said.
The donation stemmed from a number of communiques of mutual cooperation signed during Fernandez's visit to Taiwan last month and would be appropriated over a period of four years in accordance with the progress of the construction project, the ministry spokesperson said.
Lu said that China had not for one day let up on its actions to undermine Taiwan's relations with its diplomatic allies, and that Chinese officials were often seen meeting secretly with Dominican officials.
"While China has continuously tried to lure away our allies, we really have to be very careful to prevent anything like that from happening," Lu said.
The local Chinese-language newspaper United Evening Express reported yesterday that Taiwan's embassy in the Dominican Republic had previously described the Caribbean nation's investment environment as unsound, citing reasons such as a weak industrial base, high electricity costs, unstable power supply, high labor costs and a deteriorating crime rate.
Lu yesterday said that the Dominican Republic's investment environment had improved over the past few years, and with the prospect of signing a free trade agreement, the Dominican Republic, which has a free trade pact with the US, was considered a good investment choice for Taiwanese businesses.
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