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Papua New Guinea's new govt cancels recognition of Taiwan

| Source: AFP

Papua New Guinea's new govt cancels recognition of Taiwan

PORT MORESBY (Agencies): New Prime Minister Sir Mekere Morauta withdrew Papua New Guinea's diplomatic recognition of Taiwan on Wednesday, but in an apparent effort to keep financial aid said he hoped to maintain economic ties with the island.

In a statement faxed to journalists, Morauta said he had reviewed documents linked to a deal with Taiwan -- which reportedly tied financial aid to the establishment of relations -- made by the government of former prime minister Bill Skate and had found they were invalid.

"Normal procedures for opening diplomatic relations with other countries, which have applied since independence, were not properly followed in the case of Taiwan," he said.

However, Morauta told reporters at an afternoon news conference he hoped to maintain strong economic ties with Taipei. "The One China policy Papua New Guinea has followed since independence (in 1975) remains intact," he said.

"But in reaffirming the One China policy, my government remains grateful to the people of Taiwan for their friendship, and their continued support. And within that framework my government will do its utmost to develop that relationship with Taiwan to the fullest extent."

Skate and then foreign minister Roy Yaki struck the deal with Taiwan reportedly worth some 2.3 billion US dollars just days before Skate stepped down from office earlier this month.

But Morauta said Skate, who made the deal during a secret weekend trip to Taipei, went against the wishes of his cabinet, which had urged him only to explore the possibility of forging relations with Taiwan.

And -- drawing on a technicality to invalidate the communique signed by both Papua New Guinea and Taiwan -- Morauta said the document had never been stamped with Papua New Guinea's seal.

The original deal sparked fierce criticism from China, which demands allies steer clear of recognizing Taipei, and neighbor Australia. Morauta had said soon after his election by parliament last week that he planned to review the deal.

Australian Foreign Minister Alexander Downer refused to comment directly on Morauta's decision but said the issue had been raised during meetings last week in Beijing with Chinese officials.

Australia was encouraged by Morauta's efforts to rekindle ties with the International Monetary Fund (IMF) and the World Bank, Downer said.

China hailed Papua New Guinea's announcement on Wednesday it would abandon diplomatic ties with Taiwan and maintain relations with Beijing.

"China highly approves of this wise decision," state television quoted Foreign Ministry spokeswoman Zhang Qiyue as saying in a statement.

Taiwan said on Wednesday it would monitor developments in Papua New Guinea before deciding whether to severe diplomatic ties with the southwestern Pacific island.

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