We didn't talk cash, Chen says of allies

President Chen Shui-bian (陳水扁) yesterday dismissed allegations that he privately promised leaders of the nation's diplomatic allies aid packages during their talks on cooperative projects, saying that money was not discussed.

"The cooperative programs are different from the `Jung Pang Project' (榮邦專案) although they share a similar spirit," he told eight reporters from the print media who had breakfast with him at his presidential suite yesterday morning.

The "Jung Pang Project" refers to the investment project worth NT$7.5 billion (US$250 million) that Chen announced during his visit to Central America in October last year. The funding is allocated to help the development of the nation's 12 allies in Central and South America.

Chen made the remark in response to a report in yesterday's Chinese-language newspaper the China Times that Chen had promised the Solomon Islands US$10 million and the Marshall Islands US$3 million in aid during his visit.

Chen signed a cooperation declaration with the nation's six Pacific allies at the first annual Taiwan-Pacific Allies Summit, promising to work together in eight areas including law-enforcement training, digital government, tourism, health care and the protection of natural resources.

Summit members supported Chen's proposal to let him and the leaders of Palau and the Marshall Islands form a task force to implement the projects.

If necessary, Chen said that he would like to meet with his diplomatic counterparts again before next year's summit, which is scheduled to be held in Majuro, Marshall Islands.

Chen said that the administration used to focus solely on bilateral ties with its diplomatic allies, but now it wanted to build multilateral ties.

Chen dismissed speculation that the summit had been organized in response to similar meetings held by China, Japan and France earlier this year. He said the summit met the needs of the nation's Pacific allies.

Despite the pressure exerted by China, Chen said that Fiji, which recognizes China, sent an observer to the summit, but Australia and New Zealand bowed out due to China's pressure.

"China's suppression of our diplomatic space is ubiquitous," he said. "We are different from them because we don't write blank checks. Instead, we offer practical and useful programs designed to solve their problems."

Chen said that he could not see the nation's Pacific allies switching ties in the foreseeable future, but that his administration would carefully manage relations with them and other diplomatic partners.

Chen said that he planned to attend an African summit in Malawi by the end of the year, despite Chad switching its allegiance to China last month. While details of the meeting are still being arranged, Chen said he believed that the nation's five African allies would attend. Taipei will also host the sixth Central America summit next year.

When asked about relations with the US, Chen said they remained good and had not been affected by this trip. The trip was made more significant by his use of "Air Force One" on the first leg of the three-day journey.

Chen said that he had decided not to skip a transit stop in Guam on his return journey because he did not want to disappoint the US government, which had been notified of the stopover plan.

"It would be rude not to go there after we notified them of the plan," he said. "It wouldn't be nice to do [that] more than once."