![]() He said switching to Taiwan would protect his country from China, which had “demonstrated a keen capability to undermine our sovereignty, rejects our values, and uses our elected and senior officials for their own purposes.”ĭespite Penuelo’s interest in pursuing diplomatic relations with Taiwan, he lost his seat in a general election on Tuesday (March 7) and will be out of office in May. Panuelo said the monetary assistance was not the only benefit his country would receive. The two sides also discussed medical referrals to Taiwan for FSM people, and scholarships and job training for FSM students. Panuelo said that he had invited a Taiwan International Development Cooperation Fund (ICDF) team to visit his country in March to survey how Taiwan could provide agricultural development assistance. “Additionally, Taiwan assures me that they will simply ‘pick-up’ any and all projects that China is currently undertaking … using Micronesian labor and Micronesian businesses, unlike China,” the letter said. Panuelo said that an additional US$15 million in assistance would be granted by Taiwan annually, to be used at the FSM government’s discretion. “We can and will receive this, over a three-year period, if and when we establish diplomatic relations with Taiwan.” “I was transparent with Foreign Minister Wu we project we need an injection of approximately NT$50,000,000 to meet our future needs,” the letter reads. They also reportedly discussed what benefits FSM could receive in exchange for building on the existing informal relationship, such as establishing a Taipei Economic & Cultural Representative Office (TECRO). ![]() Panuelo said he met with Wu in February to discuss the terms of a diplomatic switch. Panuelo said that given the importance of foreign transfers to his country, and his desire to rid the country of Chinese interference, he felt obliged to see if a better deal could be achieved by switching diplomatic recognition from China to Taiwan. He wrote that China was using the bribes to pressure his government to isolate Taiwan and build support for an eventual Chinese invasion.Īs a remote Pacific Island country, FSM is reliant on aid funding as its primary source of revenue. Panuelo's letter also outlines a raft of allegations directed at Chinese officials who Panuelo says engaged in “political warfare,” claiming that China offering bribes to FSM officials is a common practice. with like-minded countries that care about peace in the Pacific region," the statement said. The Ministry of Foreign Affairs (MOFA) did not respond to questions about the reported sums, but issued a statement saying it respects and welcomes the expansion of bilateral relations. ![]()
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