China offered to pay-off Taiwanese loans
/ 0
- Details
- Parent Category: Nov 2011
- Category: Week ending Nov 05th, 2011
- Hits: 995
An offer to pay-off Grenada’s estimated 76 million E.C dollar loan debts to Taiwan was apparently made by Mainland China during its courtship with the former Keith Mitchell-led New National Party (NNP) government.
THE NEW TODAY has seen documents from the London-based Keppel Foundation, a group of Chinese businessmen that helped to broker the deal, which saw the NNP regime dump Taiwan in favour of a more lucrative package from Beijing in the aftermath of Hurricane Ivan in 2004.
Former Foreign Affairs Minister, Elvin Nimrod admitted publicly that the Keppel Foundation was involved in the dialogue but said the group had little influence in sealing the deal with Taiwan.
According to Nimrod, Grenada did not receive any funds from Mainland China to take care of the loan from Taiwan, which is now pushing the new rulers in St. George’s to pay-off all outstanding funds or face sanctions.
However, documents seen by this newspaper indicate that the Grenada/China financial arrangements were being handled directly from the Office of Prime Minister Mitchell and the Keppel Foundation and not the Ministry of Foreign Affairs headed by Nimrod.
One of the persons who was central to the negotiations was Richardson Andrews, the then Special Advisor to Prime Minister Mitchell.
A letter dated October 25, 2004 addressed to Dr. Mitchell from the President of Keppel Foundation, Frank Hwang made mention of the Chinese Foreign Minister, Li Zhao Xing confirming that Beijing was prepared to take care of the loan pay-off to Taiwan.
“...I have just spoken with his Excellency Li Zhao Xing (Foreign Minister) on the phone and he would like to respectfully point out that the Chinese proposal (to Grenada) has already included the provision of funds US$15,000,000 to be paid into the treasury of the Grenada Government instantly, part of which will be used to repay the loans from Taiwan and to finish the Community-based projects originally funded by Taiwan”, said Hwang in the letter to Dr. Mitchell.
He also confirmed an aid package from China to help rebuild the Cricket stadium at Queen’s Park to help Grenada stage its allotted matches for the 2007 ICC Cricket World Cup.
As a public service, THE NEW TODAY reproduces the letter in full:
CONFIDENTIAL
25th October 2004
Dr. the Honorable Keith Mitchell
Prime Minister of Grenada
St George’s
Dear Honorable Prime Minister,
Since Taiwan is fiercely accusing China of conducting “money diplomacy” in a tug of war over diplomatic relations with Grenada, China is adopting a much more conservative position with regard to the matter. Taiwan can’t help Grenada now and won’t really help Grenada in the future, but they seem to be successful in making sure Grenada gets no help from China.
Upon my receipt of the written response from the Honorable Elvin Nimrod, I will confidentially present it to his Excellency Li Zhao Xing for consideration and will of course confidentially deliver his reply to you.
Nevertheless, I have just spoken with his Excellency Li Zhao Xing on the phone and he would like to respectfully point out that the Chinese proposal has already included the provision of funds of US$15,000,000 to be paid into the treasury of the Grenada Government instantly, part of which will be used to repay the loans from Taiwan and to finish the Community-based projects originally funded by Taiwan.
Subject to further confirmation, there are also provisions of funds of up to US$35,000,000 in total to be paid into the treasury of the Grenada Government on various dates within the first year of the normalisation of bilateral relations and the implementation of economic and technical cooperation between the two countries, to assist the Grenada Government in meeting its immediate financial needs. The above provisions of funds amounted to US$50,000,000.
While being accused of “money diplomacy” with Grenada, however, China regards making a lump sum payment of the entire US$50,000,000 up front to Grenada highly inappropriate.
The proposed contribution of US$1,000,000 to the educational trust is from the Keppel Foundation, not the Chinese Government. The Keppel Foundation doesn’t have the resources to make such contribution annually.
The Chinese proposal, however, has included the provision of gratuitous aid per year over a five-year period from 2005 to 2009 for technical cooperation or project support as agreed by the two governments.
Although it is the Chinese Government’s policy not to make international commitment in economic and technical cooperation for more than five consecutive years, the proposed agreement on economic and technical cooperation between the two countries is renewable every five years.
The Chinese Government would undertake the redesign and construction of the Grenada National Stadium Complex expeditiously and manage to complete it in 2006, if and only if without further delay of the commencement of the proposed project into the forthcoming Western and Chinese holiday seasons of 2004 and 2005.
Due to his extremely pressing timetable of official functions, especially at the conclusion of the year, His Excellency Li Zhao Xing respectfully requests your written confirmation on the proposed 4th - 8th December visit by Monday 1st November 2004, or alternatively, he would be pleased to welcome you after the Chinese New Year holidays in March 2005.
He respectfully urges you to visit China without delay and sincerely promises to afford you such courtesy, friendship, hospitality and generosity as can be expected from a true friend.
Under the circumstances, he expects to welcome the Honorable Elvin Nimrod and Mr. Richardson Andrews as part of your delegation.
As a true friend of the Caribbean, I would like to respectfully recommend you to visit China to kick off the proposed project swiftly, before the momentum of the Chinese goodwill disappears totally.
Chinese people believe in personal contact between the decision-makers and I am certain that the sooner you visit them, the better you can expect from them.
With my warmest regards and best wishes, I remain.
Respectfully yours,
Frank Hwang
President
.jpg)
