The Federated States of Micronesia (FSM) held talks with Taiwan in February about switching diplomatic ties for $50 million in assistance after frustrations with China, the outgoing president of the Pacific island nation has said in a letter.
Panuelo lost his seat in Tuesday's national poll, election officials confirmed.
He accused China of bribing officials and making “direct threats against my personal safety” as part of a bid to take over self-ruled Taiwan. Panuelo also accused Chinese officials of bribing local officials to be “complicit” and “silent”.
In February, he met with Taiwan's Foreign Minister Joseph Wu and told him that Micronesia would need money for its trust fund if it was to switch diplomatic allegiance.
“I was transparent with Foreign Minister Wu; we project we need an injection of approximately $50 million to meet our future needs,” Panuelo wrote. “We can and will receive this, over a three-year period, if and when we establish diplomatic relations with Taiwan.”
He said Micronesia would also receive an annual $15 million assistance package and Taiwan would take over various projects that China had begun, including a national convention center, two state government complexes, and two gyms.
The FSM, which is home to fewer than 115,000 people and located about 2,900km (1,800 miles) northeast of Australia, is independent but receives financial assistance and defence guarantees from the United States under a so-called compact of free association.
‘Mutual respect’
Beijing swiftly condemned the claims accusing Panuelo of “smears and accusations” that “do not accord with the facts”. “The Chinese side is always willing – on the basis of the One China Principle – to uphold the principles of mutual respect, equality and mutual benefit, push forward friendly cooperation with Micronesia.”
Taiwanese lobby back at it. Hm, I'm sure this has nothing to do with it:
If approved by Congress, would receive $3.3 billion, the Marshall Islands $2.3 billion, and Palau $890 million over between budget years 2024 and 2044. In addition, $634 million would be allocated to the U.S. Postal Service to continue to operate the three countries’ mail.
From his Wiki page : In March 2022 Panuelo characterized China, with its de facto one-party state status, "as paragon examples of peace, friendship, cooperation, and love in our common humanity." President Panuelo has characterized himself as "a sincere friend of China" and the Chinese Communist Party (CCP) as "our very dear Chinese friends."
Quite a turnaround ...
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