Papua New Guinea's new govt cancels recognition of Taiwan

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.