Taiwan blames RI for canceled investments

Taiwan blames RI for canceled investments

Associated Press, Taipei

Taiwan's vice president said Sunday that Indonesia, rather than Taiwan, should be blamed for Taipei's cancellation of several planned investments in Indonesia.

Annette Lu was responding to reported allegations by a Taiwanese-Indonesian businessman, Kung Hai-rong, that Taiwanese leaders had reneged on their promise to help Indonesia develop its agriculture, fishing, mining and manufacturing industries.

Taiwanese President Chen Shui-bian had briefly pursued a so- called "go-south policy" to encourage Taiwanese businesses to invest in Southeast Asian countries instead of rival China.

The United Daily News paper on Sunday quoted Kung as saying Taiwanese leaders had promised to help Indonesia with development after Kung offered to use his influence to help arrange for Chen to visit the Indonesian capital, Jakarta last December.

But the Taiwanese backed out on the investment pledges, Kung reportedly said.

"It was an act of tearing down the bridge after crossing it," Kung was quoted as saying in a recent letter to Chen.

Lu, however, said Indonesia "did not show adequate sincerity, and our go-south policy and other projects naturally came to an end."

Jakarta had agreed to Chen's visit, but withdrew its consent at the last minute following objections from China. Relations between Taipei and Jakarta have since been strained.

China and Taiwan separated amid civil war in 1949. China claims Taiwan as a part of its own territory, and adamantly opposes foreign trips by Taiwanese leaders.

Taiwanese leaders have sought to break their diplomatic isolation by planning what they call "holiday visits" to foreign countries.