NNP was looking for millions from Taiwan
/ 0
- Details
- Parent Category: Nov 2011
- Category: Week ending Nov 12th, 2011
- Published on Saturday, 12 November 2011 23:30
- Hits: 971
Two years before dumping the Republic of China on Taiwan (ROC) in 2005, the former Keith Mitchell-led New National Party (NNP) government had apparently worked out a plan to solicit close to 50 million U.S dollars from the Far-east Asian nation to help Grenada’s fledgling economy.
THE NEW TODAY has obtained a document entitled, “Proposal by the Government and People of Grenada to the Government and People of the Republic of China on Taiwan”, that was reportedly prepared after the 2003 general elections which the NNP won by a mere one-seat from the then major opposition National Democratic Congress (NDC).
The document was reportedly found in the deserted Office of Richardson Andrews, the Special Advisor to Prime Minister Dr. Keith Mitchell after the July 2008 general election in which Congress grabbed 11 of the 15 parliamentary seats.
Richardson played a key role in the negotiations with the Keppel Foundation that eventually saw the NNP regime kicking out Taiwan from Grenada in favour of a more lucrative package from Mainland China.
The 5-page document indicated that Grenada was in serious financial trouble and that “economic growth” came to a halt in Grenada in the 2000/2001 period resulting in the Mitchell regime being badly affected by the country’s high debt burden.
The report acknowledged that the country’s debt burden arose from the deliberate decision taken by the Mitchell government “to undertake necessary infrastructure development (roads, Education, Health Etc) in order to kick-start critical growth-oriented activities”.
“The scarcity of concessionary financing forced the (NNP) government to resort to commercial high cost financing, given the expectation of economic growth. However, the expected economic growth needed to generate the revenues for debt servicing did not materialize because of international shocks, crippling natural disasters, and our lack of technical and professional personnel”, said the report.
Against this backdrop, the NNP proposal stressed the need for Taiwan to be approached for US$40.8 million dollars in budgetary support for the period May 2004 to March 2007.
The argument that was being advanced by the NNP administration in the document is that Taiwan should have an interest in the political status quo remaining in tact in Grenada since an NDC administration would see the island moving towards Mainland China.
Following are excerpts from the NNP document:
“Politically, the NNP Government has advanced the process of democracy, peace and stability within the country. However, the slippage in the social conditions that have arisen among segments of the population, as the country adjusts to a more liberalized environment, and the slow economic growth, have provided the opportunity for the opposition party, the National Democratic Congress (NDC) to emerge.
More strategically, the NDC and the other major opposition party the Grenada United Labour Party (GULP) have emerged with the financial assistance of the Peoples Republic of China (PRC).
Security reports indicate a clear financial relationship between these opposition parties and the PRC. Moreover, two security incidents at the country’s International Airport also created opportunities for millions of United States currency to be brought into the country to finance the NDC.
The upshot of the substantial financing and campaign contributions received by the NDC from the PRC is that the NNP Government was seriously outspent throughout the election period, but particularly in the final two weeks before the Elections.
The impact of PRC campaign contributions to the Opposition has significantly altered the elections balance and the elections results. Most elections commentators and students of Grenadian election history have concluded that the close election results were largely a factor of PRC financing.
As a result, the NNP Government holds only a very narrow majority (of one) in the Parliament and governance will be difficult as any legislation requiring a two-thirds majority will experience difficulties. The impact of such a slim majority in Parliament for the country’s foreign policy is also quite serious. It places limits on the overseas travel of Ministers.
The Minister of Foreign Affairs and International Trade, particularly, will now, not be able to attend many of the important international meetings and negotiations necessary for the management and governance of the country.
Where the Minister of Foreign Affairs and International Trade cannot travel to engage international commitments, that require inputs at the highest political level, representation on issues of paramount importance to the ROC is not as effective.
Over the past years, Grenada has defended the sovereign rights of the ROC to enter into separate treaty obligations with other Members through the auspice(s) of the World Trade Organisation (WTO). Should the NNP Government in Grenada not retain executive power, the mutually beneficial relations that Grenada and the ROC have developed, which have redounded to the benefits of the ROC in international fora such as the WTO and the other United Nations Organisations, would be jeopardized.
As it stands there are compelling reasons why the Government of Grenada and the ROC, should further strengthen the level of collaboration within these international fora. In fact, Grenada’s Ambassador to the WTO was directed and undertook bilateral meetings with the ROC’s Geneva Mission to the WTO and UN Organisations aimed at strengthening and deepening this relationship.
Much is at stake if the bilateral relations which now exist and which is presently being contemplated by the Technical and Diplomatic arms of both the Government of Grenada and the ROC, were to be dissolved.
The opposition parties, and more pronounced, the NDC, have already agreed with the PRC to terminate diplomatic relations with the Republic of China on Taiwan should they eventually accede to Government. The campaign contributions and in-kind support can therefore be considered “down-payments” for this shift.
The NNP Government of Grenada and the Government and People of the Republic of China on Taiwan have long developed a strong fraternal and mutually beneficial relationship based on trust, mutual respect and brotherhood.
The NNP Government of Grenada, and, in particular, Prime Minister Keith C. Mitchell of Grenada is considered to be the most respected Government and Prime Minister, respectively among the countries of the OECS. We view the risk of deterioration in the political ties between our two countries as a potential tragedy.
In this context, the danger of the loss of elections and of the Opposition breaking political ties between the two countries runs the risk that such a diplomatic shift could advance through other OECS countries, allowing PRC to drive a wedge through the bonds that have developed with the OECS over the years.
The narrow mandate given to the NNP Government implies that sooner rather than later, the country will need to return to the election polls.
In order to ensure that the election results truly reflect the will and sentiment of the Grenadian people, a well-constructed, systematic approach to addressing several priority issues will need to be undertaken.
The Request
Assistance is being requested from the Republic of China on Taiwan in TWO areas:
(1). Supporting Technical Capacity and Enhancing the Professional Competence within the Government; and
(2). Temporary Budgetary Support for the Government and People of Grenada.
BUDGET BY PROJECT COMPONENTS
(1). Supporting Technical Capacity and Enhancing the Professional Competence within the Government of Grenada (Technical Capacity) - US $9.0 Million
(2). Temporary Budgetary Support to the Government and People of Grenada (Budgetary Support) -US $40.8 Million over the next three years
TOTAL PROJECT COSTS:US$ 49.8 MILLION
.jpg)
