Published on Taipei Times
http://www.taipeitimes.com/News/world/archives/2006/04/06/2003301220

China offers new aid to Pacific allies

INFLUENCE: China's premier said that Beijing was in the region for the long term and offered its allies preferential loans as part of a new aid package

AFP, NADI, FIJI
Thursday, Apr 06, 2006, Page 4

Chinese Premier Wen Jiabao (·Å®aÄ_) announced yesterday a new package of aid to Pacific countries as Beijing sought to deepen China's influence among the island nations and contain Taiwan's diplomatic clout.

Wen offered new loans and aid and promised that China was committed to long term engagement with some of the world's smallest and least populated nations.

On the first ever visit by a Chinese premier to the Pacific Islands, Wen told leaders and ministers at the opening of a conference that China was in the region to stay.

"As far as China is concerned, to foster friendship and cooperation with the Pacific island countries is not a diplomatic expediency," Wen told the opening of the China-Pacific Islands Countries Economic Development and Cooperation conference.

"Rather it is a strategic decision. China has proved and will continue to prove itself a sincere, trustworthy and reliable friend and partner of the Pacific island countries forever," he said.

China and Taiwan have been vying for diplomatic recognition in the Pacific, and six island states which recognize Taipei did not attend the meetings.

Wen has not referred to the Taiwan issue in speeches during his visit but stressed the prospect of growing economic ties between China and the Pacific Islands.

Wen announced China would provide 3 billion yuan (US$375 million) in preferential loans in the next three years to boost cooperation in resources development and key industries.

It would also offer zero tariffs for exports from the least developed countries in the region which recognize Beijing, as well as canceling some debts.

Pacific leaders welcomed the visit as an historic event and Fijian Prime Minister Laisenia Qarase said it reflected shifting diplomacy and political realignments in the region.

In response to China's pledge of new aid, Taiwan's Ministry of Foreign Affairs yesterday said Beijing aimed to reduce Taiwan's influence.

"This monetary aid is clearly an inducement by China to kick Taiwan out of the region," ministry spokesman Michel Lu (§f¼yÀs) said.

Lu said Taiwan would not engage in a "checkbook diplomacy" contest with China, but he refused to state the amount of aid Taiwan gives to its allies in the Pacific.

Additional reporting by Chang Yun-ping