The Grenada-China connection
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- Parent Category: Nov 2011
- Category: Week ending Nov 19th, 2011
- Published on Sunday, 20 November 2011 00:55
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Within days of the passage of Hurricane Ivan on September 7, 2004, the Keith Mitchell government was already engaged in secret talks with emissaries from Mainland China to accept a financial package and to dump Taiwan.
Several confidential documents are now in the possession of The NEW TODAY newspaper about the intricate discussions taking place between a high-ranking official in the Office of Prime Minister Mitchell and the Keppel Foundation, the Chinese front group.
One of the letters from the President of the Foundation, Frank Hwang was addressed to Richardson Andrews, the powerful Special Advisor to Prime Minister Mitchell.
The letter dated November 15, 2004 indicated that Mainland China had presented proposals to Prime Minister Mitchell as early as September 14, one week after Hurricane Ivan devastated the island.
Officials from the Keppel Foundation had met in St. George’s with the then Grenadian leader on September 24 “to express their profound sympathy and full support to the Government and People of Grenada during the trying time” following the widespread destruction caused by Ivan.
The Chinese foundation, with offices in England, had also dispatched a set of supplies to Grenada that included drugs, medical supplies and medical equipment, which arrived in St. George’s on September 24, 2004.
The letter also dropped strong hints that Beijing were beginning to get restless with the indecision coming from Grenada on making the break from Taiwan to the Chinese on the Mainland.
It also mentioned the proposed one million U.S dollars to be personally given to Prime Minister Mitchell to set up a foundation in his name allegedly for educational purposes.
To date the former Prime Minister has refused to answer questions posed to him by local journalists on the alleged one million payment from the Keppel Foundation at a banquet held in Beijing.
Following is the full text of the letter:
CONFIDENTIAL
15th November 2004
Mr. Richard Andrews
Special Advisor to the Prime Minister
St. George’s
Dear Mr. Andrews,
With regard to your correspondence of 10th November, I have the honour to convey our Chinese friend’s comments to you as follows:
In the proposal presented to the Honorable Prime Minister in St. George’s on 14th September, there was proposed provision of funds of US$ 15 million to be paid into the treasury of Grenada Government, part of which will be used to repay the loans from Taiwan and to finish the community-based projects originally funded by Taiwan.
There were also proposed provisions of funds of up to US $20 million in total to be paid into the treasury of Grenada Government to assist the Grenada Government in meeting its immediate financial needs. They amounted to US $35 MILLION.
Subsequently, at the request of the Honorable Prime Minister and subject to China’s further confirmation, the amended proposal was presented to the Honorable Prime Minister on 20th October, reflecting a possible improvement from the previous offer of US$35 million to US$50 million to help repay the loan from Taiwan and to finish the community-based projects originally funded by Taiwan and US$ 35 million to assist the Grenada Government in meeting its immediate needs.
While it would help Grenada with a significant payment towards the Taiwanese debt settlement, the extraordinary large amount of Chinese monetary aid (i.e. US$15 million) to Grenada has already drawn serious criticisms from both the Taiwanese and the Chinese, due to the negative publicity caused by Taiwanese fiercely accusing China of conducting “money diplomacy” in a tug of war over diplomatic relation with Grenada.
Although China attaches great importance to its relations with Grenada, it has both China’s and Grenada’s international image to protect.
Subject to further confirmation, China might be able to allocate and release the funding of US$5 million upon announcement of the normalisation of relations between the two countries, US$10 million when Grenada closes down and vacates the “embassy” of Taiwan within a month to follow, US$ 10 million when both countries exchange their ambassadors, US$ 15 million after the embassies of both countries have been established, and US$10 million at the conclusion of the first year of the normalisation of bilateral relations.
China would immediately undertake the design/redesign and construction of the Grenada National Stadium Complex, Cricket and Athletics, to enable its completion in 2006 for hosting the Cricket World Cup Tournament in early 2007, if and only if there is no further delay to render it infeasible for China to mobilise the work before the forthcoming Christmas, New Year and Chinese New Year holiday season.
China shares your viewpoint that any failure in completing the Stadium will be a national disaster and an international shame of immense proportions.
In order for China to be responsible for fulfilling its time commitment to Grenada on the stadium, however, China must abide by its policy of utilising Chinese manpower, materials and technology to efficiently and effectively carry out the project, with supplementary assistance of local participation if it won’t slow down the progress of the Chinese “ military-like” operation which is required for honoring the above commitment in time.
The Grenada Government would be respectfully expected to provide the Chinese team with free sand and gravel, permits and licenses, concessions and incentives, and other assistances as may be needed for China’s timely and quality performance of the project.
Subject to further confirmation, there is a provision of gratuitous aid of US$ 40 million for the project to be mobilised by China expeditiously.
There is a proposed provision of funds of US$1 million to meet costs related to the establishment and the first-year operation of the embassy of Grenada in China.
For the 2nd, 3rd, 4th and 5th years, there is a proposed provision of gratuitous aid of US$7.75 million per year for technical cooperation or project support as agreed by the two governments, which is expected to include the budget for certain infrastructural development projects to be mobilised by China in the interests of Grenada, as well as US$ 0.25 million per year for the continued operation of the embassy of Grenada in China.
Our Chinese friend would like to respectfully point out that the above proposed provisions of gratuitous aid for Grenada, which amounted to a total of US$ 122 million in monetary value, have already reached the budgetary maximum for foreign aid followed by the Chinese Government’s established guidelines which are based on the sizes of area and population, as well as special situations and needs, with regard to the beneficiary country in question.
To facilitate sustainable development, the guidelines also require that at least 50% of the gratuitous aid should be allocated for the infrastructural development projects to be mobilised by China in the interests of the beneficiary country.
While our Chinese friend fully appreciates the necessity for both sides to reach certain mutual understandings with regard to the proposed project before the Honorable Prime Minister’s visit to China, he would like to respectfully remind you that all the terms and conditions of the proposal are for discussion purposes and have to be further discussed and confirmed when he and his colleagues have the opportunity to personally consult with the visiting Prime Minister in early December.
He believes by now both sides have understood each other well enough to reasonably ensure the successful outcomes of the above personal consultations which cannot be accomplished through telecommunication. Thus, if Grenada is genuinely sincere to forge diplomatic ties with China, it is time for real actions.
For as much as the Keppel Foundation continues to be committed to help establish the proposed “Dr. Keith Mitchell Educational Trust” in the educational interest of Grenadian students both at home and abroad, it would have to be postponed to appropriate time in the future, if the specific date when the required arrangements can be made for the “Friends of Grenada” dinner party continues to remain uncertain.
Although the proposed Keppel Foundation contribution of US$1 million to the educational trust is meant to be coincided with the Honorable Prime Minister’s visit to China in early December, the foundation has its own protocol to follow.
For example, all the vice presidents and major benefactors of the Foundation in various Asian countries have to be invited to participate in the above event, which is practically impossible to organise without knowing for sure about the dates of the Honorable Prime Minister’s visit to China.
As the Chinese are understandably losing their momentum and goodwill and becoming more conservative towards the proposed project due to the prolonged delay, I respectfully urge you to confirm in writing on the specific dates of the Honorable Prime Minister’s early December visit to China, as well as the list of his entourage for the trip before the good things start falling apart.
Thereafter, I would also need to secure China’s confirmation in writing on its agreement with regard to the above dates of visit.
Please transmit your correspondence by facsimile and dispatch its original copy by international courier to my office in Oxford, as you did, so that I can present it to His Excellency Li Zhao Xing confidentially and expeditiously.
Please accept, Sir, the assurances of my highest consideration.
SIGNED:
Frank Hwang
President
Keppel Foundation
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