China vows to defer action on PNG until next govt formed

China vows to defer action on PNG until next govt formed

PORT MORESBY (AP): China will wait to see the makeup of the
next Papua New Guinea government before deciding whether to take
action against the South Pacific nation for its controversial
recognition of Taiwan, Chinese ambassador Zhang Pengxiang said on
Friday.

The Papua New Guinea parliament will elect a new prime
minister soon after it resumes meeting on July 13, following the
resignation of Prime Minister Bill Skate on Thursday.

Skate resigned just days after sparking an international furor
when he and Foreign Minister Roy Yaki visited Taipei and signed a
communique giving Taiwan diplomatic recognition.

On returning from Taipei on Friday, Yaki strongly denied that
the deal involved cash-for-recognition, although he said
assistance from Taiwan would help pull his nation out of poverty.

"This (the bilateral relationship with Taiwan) is based upon
appreciation of the problems that we are faced here in this
country and the keenness and the interest shown by the government
of Taiwan to be able to look at what is possible for them to do
in terms of assisting us," Yaki said.

"Does that amount to bribery? Does that amount to trading
diplomatic relationships for money? No, it does not."

Sir Mekere Morauta, who leads the People's Democratic
Movement, has said he has enough support among lawmakers to
become prime minister. He has said he will review the Taiwan deal
if he becomes prime minister.

Zhang told reporters in Port Moresby, Papua New Guinea's
capital, that the Chinese government is "waiting for the course
of events to develop." He said, "We have to still watch what's
going to happen in Papua New Guinea's political arena."

Taiwan has said it wants to help Papua New Guinea out of its
economic woes, but denied it paid for the recognition deal.

A leaked Papua New Guinea Cabinet document dated June 29,
before the Skate-Yaki visit to Taiwan, indicated Papua New Guinea
was seeking US$2.35 billion in financial aid from Taiwan.

China, which regards Taiwan as a renegade province, was
infuriated by the deal and threatened "serious consequences"
unless Papua New Guinea changed its "erroneous decision."

Asked if China would consider trade sanctions against Papua
New Guinea or the closure of its embassy in Port Moresby, Zhang
said: "As to what actions we might take, you can imagine."

China usually cuts all diplomatic ties with countries which
recognize Taiwan.

Skate says the Taiwan deal has nothing do to with his
resignation, saying he was attempting to restore political
stability to Papua New Guinea.

Explaining why he will review the Taiwan deal, Morauta said:
"There are regional and international implications. I have to be
mindful and sensitive to that."