GRENADA TODAY understands that the funds were received by the Grenada government from the Red Cross movement of the People's Republic of China (PRC) and issued through its Embassy in Bridgetown, Barbados.

The money is said to have come from a Non-Governmental Organisation (NGO) in Beijing and issued through the PRC Red Cross because Grenada and China do not have any diplomatic relationship. Informed sources told GRENADA TODAY that the money was given to Chairperson of the National Emergency Relief Organisation (NERO), Brenda Hood, the current Minister of Tourism in the ruling New National Party (NNP) administration.

The Minister is believed to have collected the money in November last year following a visit she made to Bridgetown, in the aftermath of hurricane Ivan on September 7. A massive appeal for aid went out to the international community after it was revealed that all sectors of the Grenada economy were seriously affected by the hurricane

Minister Hood is reported to have met and held talks with officials of the PRC Embassy as part of Grenada;s efforts to seek assistance in rebuilding the country. St. George's has diplomatic relations with the Republic of China on Taiwan (ROC) for the last fifteen years.

The relationship has gone cold in recent times as a result of an official visit made by Prime Minister+. Keith Mitchell to China last month in search of aid to rebuild his devastated nation. The PRC views Taiwan as a renegade province and has threatened to use force in the event it declares its independence.

Checks made by this newspaper revealed that although the Grenada Red Cross was notified about the money by Minister Hood, it was never handed over to them. A Red Cross official confirmed to GRENADA TODAY that the Minister did indicate to them on her return from Barbados about receiving the money on their behalf. He said, however that the organisation had heard through the local media that the funds were handed over to government for its own use.

The Red Cross official stated that when they telephoned the PRC Embassy in Bridgetown last Monday they were told by an assistant to the Ambassador that the monies were for the Mitchell government and not for use by the local charitable organisation. He pointed out that there is a procedure involved for persons collecting and accepting monies on behalf of the Red Cross, in that once the funds are given they must be handed over to the movement.

A source told this newspaper that the situation involving the Red Cross is a clear case of "dollar diplomacy" in that Beijing is using its influence to get Grenada to break relations with Taiewan. The Mitchell government is expected to shortly announce a break in diplomatic ties with Taiwan in favour of Mainland China as part of a 10-year aid package.

Beijing has reportedly promised the Mitchell government 100 million dollars in aid over a 10-year period plus additional help in rebuilding the national stadium at Queen's Park.