Chen promises financial assistance to Paraguay

President Chen Shui-bian (陳水扁) yesterday promised to help promote Paraguay's agriculture and infrastructure projects through annual ministerial meetings between the two countries' cabinet members, saying Paraguay should be the gateway for Taiwan to enter the Southern Cone Common Market (MERCOSUR).

To further implement economic and trade cooperation, Taiwan's Ministry of Foreign Affairs (MOFA) decided to take over ownership of Paraguay's Eastern City Industrial Park (東方工業區), which is the country's largest industrial complex, to help coordinate Paraguay's major enterprises and protect the investing rights of Taiwanese businessmen.

The president and his delegation yesterday continued their visit in Paraguay with the two leaders reaching a consensus to create a number of new mechanisms to help Paraguay eliminate its impoverished conditions.

During a private meeting between the two, Paraguay President Luis Angel Gonzalez said he hoped Taiwan would help improve his country's agriculture and timber industries, as well as basic public construction.

Chen responded that Taiwan's DPP government will completely implement all promises made by the former KMT government. However, he stressed that Taiwan could only provide assistance that was within its economic means.

"Taiwan's economic growth is strongly influenced by the international economic recession and the government has had to shoulder the weighty responsibilities of post-quake reconstruction from the huge 1999 earthquake," Chen said, "therefore we will just do our best in providing financial assistance."

Chen added that Paraguay, which has plentiful water resources and extensive land, is the heart of Southern America, so Taiwan should develop a strategic partnership with the country.

"Paraguay is one of the MERCOSUR's four members," Chen said, "and Taiwan will work to linking with this international organization through Paraguay."

The two presidents also agreed to establish an "annual meeting between ministers of the ROC and Paraguay" to draw up concrete plans for future economic cooperation.

Meanwhile, economic officials in the Taiwan's delegation told Paraguay's government that Taiwan will take over ownership of the Eastern City Industrial Park.

"This industrial park was established in 1998 through the cooperation of Taiwanese businessmen and Paraguay's government, and Taiwan's MOFA only granted loans to those businessmen during the past three years," said Yang Tzu-pao (楊子葆), deputy secretary general of the "International Cooperation and Development Foundation" (ICDF).

"However, we find that this park has not develop efficiently," Yang said.

The Eastern City Industrial Park, which now has 12 companies, is Paraguay's only major industrial park.

Yang said that the ICDF plans to lower the rent and investment costs after taking over the park and focus on a few specific industries, which will help Paraguay take advantage of its resources.