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HOME	JANUARY 29th, 2005

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Taipei - Ties with Grenada could be cut as early as today or tomorrow when the Caribbean state is expected to explain whether it plans to relinquish relations with Taiwan, according to the Ministry of Foreign Affairs.

Lu explained that the government would not take any action to sever diplomatic ties until after Mitchell returns to Grenada from his recent trip to China and Japan, and only if he formally rescinds ties with Taiwan. Lu said it was uncertain whether Mitchell would offer an explanation of the diplomatic quandary immediately upon returning home.

Grenada signed a communique last Thursday to resume official ties with China, a move that will most likely require it to rescind its recognition of Taiwan. The two countries first established ties in the 1980's under the then New National Party (NNP) government of the late Herbert Blaize.

The then Minister of Foreign Affairs Ben Jones had paid an official trip to Mainland China with senior protocol officer, Adrian Hayes, now the Permanent Secretary in the Ministry of Tourism and civil Aviation.

Beijing had failed to deliver on a number of promises to St. George's including assistance in bamboo production when Blaize switched over to the Republic of China (ROC) on Taiwan. If ties with the Caribbean island nation are severed, Taiwan would be left with 26 diplomatic allies, a figure that includes the nation's ambiguous ties with Vanuatu.

While Taiwan counts Vanuatu among its allies, the diplomatic communique signed by deposed Vanuatuan prime minister Serge Vohor is not recognized by his successor. However, Lu said yesterday the ministry was perfectly willing to see Grenada establish ties with both Taiwan and China.

"We're not going to limit whom Grenada can be friends with, but we won't stand for their threats or demands for money," Lu said. According to Lu, Mitchell has accused Taiwan of failure to take Grenada's needs seriously.

"He accused Taiwan of refusing to help with the construction of a hospital and a gymnasium," Lu relayed. Lu said that there was no reason why Taiwan should shoulder financial responsibilities at Grenada's request. "They just want us to give more money," Lu said. "This is an attitude problem."

Taiwanese officials have accused Prime Minister Mitchell of making demands on them for $245 million U.S dollars in financial aid to help rebuild Grenada after the widespread devastation of the island by Hurricane Ivan on September 7. The Grenadian leader has denied the charge and accused Taiwan of telling a blatant lie.

Informed sources told GRENADA TODAY that Mainland China has promised the Mitchell government an aid package of $100 million U.S dollars over a 10-year period, plus a commitment to rebuild the national sporting stadium at Queen's Park that was damaged by Ivan.