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C O N F I D E N T I A L SECTION 01 OF 02 SUVA 000071 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 1/29/2017 
TAGS: EAID PREL PGOV FJ NR KR TN TV
SUBJECT: PRC AND TAIWAN ENGAGEMENT IN FIJI, TONGA, NAURU, 
KIRIBATI AND TUVALU 
 
REF: A. STATE 7966 
     ¶B. SUVA 30 
     ¶C. SUVA 67 
     ¶D. SUVA 57 
     ¶E. SUVA 66 
     ¶F. 06 SUVA 156 
     ¶G. 06 SUVA 427 
     ¶H. 06 SUVA 490 
 
Classified By: Charge Ted Mann per 1.5 (B) and (D) 
 
Summary 
------- 
¶1.  (C)  China and Taiwan are both actively engaged in Fiji, 
and are both likely to be asked by the interim government for 
increased assistance.  Tonga is seeking an influx of funds 
from China to help rebuild Nuku'alofa.  Taiwan has a strong 
presence in Nauru, Kiribati and Tuvalu.  Taiwan 
representatives tell us it is under pressure to step up 
assistance levels in light of China's increased engagement 
throughout the Pacific.  End summary. 
 
Fiji - The Interim Government Looks for Help 
-------------------------------------------- 
¶2.  (C)  PRC officials in Fiji (ref B) tell us that while 
they fully expect to receive more requests for assistance 
from the interim government, few of the planned assistance 
efforts announced during Premier Wen's visit to Fiji last 
April have yet been implemented.  PRC Embassy staff insist 
China is anxious to move forward but that Fiji officials have 
been preoccupied and disorganized, especially since the coup. 
 Fiji's interim Permanent Secretary of Foreign Affairs 
countered that China has put too many conditions on its aid, 
making it very difficult to tap into the money Wen promised 
(ref C).  We expect to see some movement on the aid package 
announced last April but no major new Chinese initiatives in 
the immediate future. 
 
¶3.  (C)  We know of no new Taiwan initiatives in Fiji. 
However, the head of the Taiwan Trade Mission in Fiji 
confirmed to us that the Prime Minister's office has asked 
for continuation of the USD1.25 million Taiwan annually 
funnels through the PM's office to various so-called 
"grassroots" projects (ref D).  For now, that funding appears 
to be on hold.  The Taiwan representative in Fiji also 
confirmed to us that a senior Fijian military official has 
inquired about procurement of weapons and other military 
equipment from Taiwan.  Taiwan is likely to continue its 
modest ongoing assistance programs in agriculture and 
education.  U.S. pressure might help convince Taiwan to 
suspend or terminate the assistance it pours into the PM's 
office, apparently with little or no oversight. 
 
Tonga Looking for Urgent PRC Assistance 
--------------------------------------- 
¶4.  (C)  Tonga urgently needs funding to help rebuild the 
Nuku'alofa central business district, most of which was 
destroyed during the November 16 riots.  Many Chinese 
businesses were targeted by rioters - the PRC arranged for a 
charter flight to evacuate Chinese families.  The government 
of Tonga has approached the World Bank, the ADB, Australia 
and New Zealand for rebuilding help but appears to be banking 
most heavily on the PRC (ref E).  Foreign Minister Tu'a and 
Finance Minister 'Utoikamanu are traveling to Beijing this 
week to discuss an assistance package. 
 
Nauru 
----- 
¶5.  (C)  Nauru receives considerable assistance from Taiwan. 
Taipei bankrolled the purchase of a Boeing 737 for Nauru's 
"Our Airline" to replace the plane U.S. Eximbank repossessed 
at the end of 2005.  Taipei also provided most of the funding 
for the repatriation of Kiribati and Tuvalu workers from 
Nauru in 2006.  Nauru is in the process of establishing an 
embassy in Taipei, fully paid for, we assume, by Taiwan.  The 
embassy will be headed by Nauru's past High Commissioner to 
Fiji, Dr. Ludwig Keke.  The Nauru Supreme Court received a 
petition last year alleging that Nauru MPs, including 
President Scotty, Ministers Adeang and Keke, among others, 
 
SUVA 00000071  002 OF 002 
 
 
received "grassroots" funds directly from Taiwan without 
making full disclosures as required by Nauruan law.  The 
Supreme Court ordered an inquiry into the allegations.  No 
result of the inquiry has been announced.  Dr. Ludwig Keke 
predicted to us that the case would never come to court. 
 
Kiribati 
-------- 
¶6.  (C)  Taiwan has a considerable presence in Kiribati. It 
is in the process of completing a sports stadium started by 
the PRC before Kiribati switched recognition in 2003, and has 
a number of agriculture and other assistance projects in 
train.  A PRC "caretaker" remains at the former PRC residence 
in Kiribati, ostensibly to protect PRC property.  The Taiwan 
connection may be an issue in the next Kiribati election, 
scheduled for mid-2007.  One of President Anote Tong's 
opponents in the election is likely to be his brother Harry, 
whom he defeated in 2003. Harry has strong ties to the PRC 
and would likely switch back to the PRC if he came back into 
power. 
 
Tuvalu 
------ 
¶7.  (C)  Tuvalu has a very long, established relationship 
with Taiwan.  Taiwan runs agriculture, aquaculture and other 
assistance programs.  As is the case with the other Pacific 
states that recognize it, Taiwan is understood to provide 
direct cash grants to members of the government.  In response 
to the increased aid promised to Pacific states by the PRC 
during Premier Wen's April 2006 visit to the region, the 
then-Tuvaluan PM told a Taiwan representative that Taiwan 
should double its regional assistance in order to keep pace 
with the PRC (ref F).  Taiwan President Chen reportedly told 
Taiwan's Pacific "allies" in September that it would not 
engage in "dollar diplomacy" to match the PRC offers (ref F). 
 Taiwan Vice Foreign Minister Chang delivered the same 
message to Assistant Secretary Hill during the Pacific Island 
Forum meetings in October (ref H), insisting "it is never our 
goal to put money into pockets, always projects." 
 
 
 
 
 
 
 
 
 
MANN