Australia tells region to adapt to China's chequebook diplomacy
Australia says region should adapt to Beijing's use of 'soft loans' in Pacific over Taiwan issue
Australian Foreign Minister Bob Carr yesterday said regional powers had to get used to China's so-called chequebook diplomacy in the Pacific as it works to shore up support over Taiwan.
The Lowy Institute, an Australian think tank, estimated last year that China had pledged more than US$600 million since 2005 in "soft loans" with long interest-free periods to nations such as Tonga, Samoa and the Cook Islands.
It has also stepped up its aid to Fiji following the 2006 coup in which military leader Voreqe Bainimarama seized power from the elected government.
Australia and the United States have previously expressed concern at China resorting to chequebook diplomacy, but Carr appeared to soften Canberra's stance in an interview with the .
He urged the region to learn to live with Beijing "developing all the accoutrements of a major power".
"That means defence modernisation but it also means a big aid budget," Carr said.
"My message really is that Australia and New Zealand have got to live with the fact that China will want to deliver aid in this part of the world [and] there is nothing we can do to stop it. It's a fact of life."
