PNG's Bill Skate quits, Taiwan deal uncertain
PNG's Bill Skate quits, Taiwan deal uncertain
PORT MORESBY (Reuters): Papua New Guinea Prime Minister Bill Skate quit on Wednesday after a deal to recognize Taiwan failed to rescue his sinking career and angered trading partner China.
His departure leaves the deal -- reported to be greased with generous support from Taiwan -- in the balance.
The frontrunner to succeed Skate told Australian radio he would review the two-day-old deal on mutual diplomatic recognition with Taiwan if he became the next prime minister.
"As a new government I have flexibility to review everything, including that," Sir Mekere Morauta told Australian Broadcasting Corporation radio.
"It's something I'd have to be very careful (about) because it's not just between Papua New Guinea and Taiwan. There are regional and international implications and I'd have to be mindful and sensitive to that," Morauta added.
Skate called a news conference at his official residence in the South Pacific nation's capital to announce his resignation, which averts a no-confidence vote against him after parliament resumes next week.
"I want to announce my resignation as the prime minister of this great nation," Skate said.
"My ministers had not put pressure on me but we have looked at all the options and I think it is the best decision," he added. "I am resigning basically to stabilize politics. I am trying to give investors the confidence that the government does not need to be changed."
Documents obtained by Reuters earlier on Wednesday revealed Skate had asked Taiwan for US$2.35 billion in loans in exchange for dumping long-standing ties with China and recognizing Taipei, Beijing's diplomatic rival.
Taiwan again denied on Wednesday that any money was to change hands in return for the diplomatic recognition.
"We did not make any monetary promises. I can guarantee that with my own career," Foreign Minister Jason Hu said angrily, dismissing the document as "false".
"If I did such a thing, I have no right to represent the Republic of China (Taiwan) in the international community."
Both Taiwan and China -- which sees Taiwan as a renegade Chinese province -- said they were closely watching developments in Papua New Guinea.
A Chinese foreign ministry spokesman called on Papua New Guinea to correct its "serious mistake" in recognizing Taiwan.
Australia, whose leaders had criticized the Taiwan move, reacted cautiously, a spokesman saying Canberra did not intend to interfere in its neighbor's domestic affairs.
Papua New Guinea government spokesman Chris Hawkins said Skate's deputy, Treasurer Iairo Lasaro, would be acting prime minister until a new leader was chosen when parliament reconvened on Tuesday.
Skate said he had not been put under pressure to quit but wanted to bring stability to his country of 4.5 million people.
Skate cobbled together an unlikely coalition to take over from Sir Julius Chan after elections were called after the 1997 Sandline mercenary fiasco -- a failed deal to use mercenaries to put down a secessionist rebellion on Bougainville island.
Skate adjourned parliament in December as rumblings against his government grew. He lost his major coalition partner, the People's Democratic Movement (PDM), 10 days ago after 16 members of his own PNG First party deserted him to join PDM.
PDM said it could no longer be part of a government it called dictatorial and incompetent. The PDM claims to control 81 of parliament's 109 seats.
PDM leader Morauta emerged as the most obvious successor to Skate, although government sources said opposing camps had already begun meetings to hammer out deals.