Beijing offers development fund if Solomon Islands breaks diplomatic ties with Taipei

Head of task force in South Pacific nation charged with evaluating diplomatic ties says Beijing will provide financial backing for ‘a certain period’

But anti-corruption agency Transparency Solomon Islands urges caution in switching allegiance over concerns country will not be able to hold firm against Beijing’s interests

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The Solomon Islands relies heavily on financial support from overseas due to its limited means of generating income, which is largely through timber exports. Photo: Reuters

Published: 1:48pm, 5 Sep 2019Updated: 9:52pm, 5 Sep 2019

China is offering to bankroll a development fund for the Solomon Islands in the South Pacific if it switches diplomatic ties from Taiwan to Beijing, a parliamentary committee in the small island nation has heard.

The proposal, which would replace a similar structure set-up by Taiwan, comes amid a global push by Beijing to peel away Taiwan’s allies. Only 17 countries now recognise Taiwan.

Beijing and Taipei have fought a tug of war for diplomatic recognition in the South Pacific for decades, with some island nations switching allegiances for financial gain.

John Moffat Fugui, a Solomons parliamentarian and head of a task force charged with evaluating diplomatic ties, said on Wednesday that Beijing would pay into a fund even though it usually preferred “grants, concessionary loans and sometimes gifts”.

“But for you, we will give you a [rural constituency development fund] for a certain period,” Fugui said, referring to recent negotiations with Beijing officials.

Solomon Islands President Manasseh Sogavare and Taiwan President Tsai Ing-wen inspect an honour guard in Taipei in 2017. Photo: AFP