A disbursement of US$2 million recently given to the Marshall Islands -- one of Taiwan's allies in the South Pacific -- is part of an existing aid package extended to the country when it established diplomatic relations with Taiwan last year, said the foreign ministry yesterday.
"We agreed to assist the Marshall Islands to improve their transportation links, and the US$2 million is part of that plan," said ministry spokesman Henry Chen (
"The money has already been incorporated into this year's budget, so it is not considered a `new expense'," Chen said.
"Any aid package we give to our diplomatic allies is disbursed over a period of time, for which they present proposals for us to evaluate. It is not given as a single lump sum," he added.
Taiwan's US$2 million contribution will go towards the purchase of two German-made commercial aircraft, which are budgeted at US$28 million. Chen emphasized that Taiwan is only subsidizing part of the aircraft purchase, and would not be shouldering the whole cost.
The money, he emphasized, is part of an overall package which includes road projects, agricultural technical teams and other plans to assist the South Pacific country's economic development.
Taiwan is providing cash worth 14 percent of the country's national budget this year, according to an AFP report -- something the foreign ministry denies. The CIA World Factbook lists the country's budget for fiscal year 1995-96 as US$80.1 million.
According to a source who declined to be named, Taiwan has offered a total of around US$55 million in aid to the Marshall Islands.
The Marshall Islands established diplomatic relations with Taiwan in November of last year.
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