The straight-talking senator running in the Pacific island state's presidential election this November was clear about his expectations for recently formed diplomatic relations with Taiwan.
"Taiwan should extend to Palau the kind of assistance and favorable tariff conditions we have received from the United States," said Peter Sugiyama, also the chairman of the Senate's Foreign Relations Committee.
"Palau has taken a bold step in forming diplomatic ties with Taiwan. The Palauan people would like to know, once it is done, then what? What are we getting from Taiwan?" Sugiyama asked.
PHOTO: CATHERINE SUNG, TAIPEI TIMES
He said the Congress was still waiting on a full report from Palau President Kuniwo Nakamura on the assistance package Taiwan has offered to the island nation.
"The only thing mentioned so far is a US$20 million low interest loan. Both houses are still reviewing that. But the ultimate decision on how that will be dispensed will be decided by the Congress," he said.
While Sugiyama vowed to continue President Nakamura's policies -- including the decision to forge ties with Taiwan -- if he is elected, it is clear that from his point of view, Taiwan must treat Palau as more than just another diplomatic prize.
He said the continuation of relations was "contingent upon the kind of action we receive from the government of Taiwan vis-a-vis the US$20 million, or other packages that may be under negotiation."
"I hope Taiwan will look at this in a more positive and beneficial level and not just for the sake of diplomatic recognition," Sugiyama said, adding that Taiwan-Palau cooperation could serve as a model for other Micronesian islands.
After nearly five years of negotiation, Taiwan established diplomatic ties with Palau on Dec. 29 last year.
Sources inside Palau's presidential office said diplomatic contacts were first made when former foreign minister Jason Hu (
Formerly a US territory, Palau formally gained its independence in 1994 and joined the UN the same year.
Palau is under the Compact of Free Association with the US, which has provided US$450 million in economic assistance over the past 15 years, up to the end of next year.
The 50-year compact also stipulates that Palau's foreign policy should be consistent with the US -- a point Sugiyama is concerned with in the island state's ties with Taiwan.
"In the case of Taiwan, our foreign policy seems to have swayed a bit because of the US's 'one-China' policy," Sugiyama said, adding that President Nakamura probably cleared his decision with the US before forging ties with Taiwan.
The Minister of State Sabino Anastacio, refuted Sugiyama's concern and told the Taipei Times that Palau is a sovereign country that has full authority over its foreign affairs.
Asked if Palau's decision to forge ties with Taiwan would further aggravate the tense Taiwan-US-China relations, Sugiyama said any violent action by China would only emphasize its weakness in conducting diplomacy.
"The People's Republic of China is so big that it would be foolish for them to utilize military aggression to do something," he said.
"To do so would mean that they are losing the diplomatic discussion so they must resort to a more violent way of negotiating."
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