2005News

“A Chinese Tale”

In DR popular parlance, a “Chinese Tale” is a fable or morality tale. For economist, diplomat and business leader Bernardo Vega, his Op-Ed column is more than a fable. Vega examines the contrasting situations of Taiwan and what is called ‘mainland China’. While most of the world and the United Nations recognize the People’s Republic of China as the “real” China, there are still 25 nations around the globe that have maintained diplomatic relations with Taiwan. Vega points out that these are mostly poor and small countries, and half of them are in the Western Hemisphere. Mainland China, however, is on the diplomatic offensive and places like Grenada have switched allegiance in exchange for massive Chinese aid after hurricane Ivan destroyed most of the buildings on the tiny island. There was even money to finish projects that had been started by the Taiwanese government. The same has happened in most of the CARICOM nations. Just last year, Dominica accepted a large foreign aid package in return for diplomatic recognition. Among the Caribbean nations, only Haiti, the Dominican Republic, St. Kitts, and St. Vincent still recognize Taiwan over Beijing, and on the mainland, Belize remains tied to Taiwan. The Central American nations from Guatemala to Panama remain in the Taiwanese fold, but the interest that China has shown for taking over the management of the Panama Canal has certainly influenced politics in that nation. In South America, Paraguay is the only country that still recognizes Taiwan. The fact that Haiti still recognizes Taiwan has certainly complicated the UN peacekeeping operation (MINUSTAH), since China has a veto on the UN Security Council and has, on more than one occasion threatened to use it. As a result of China’s threats, the peacekeepers have been given less time to complete their mission, and this, in Vega’s view, is not in the DR’s interest sinceHaiti is a failed nation and requires long-term international support. What is surprising, to Vega and many others, is the fact that China has troops in Haiti, since there is a possibility that Taiwan could also send troops and possible set off a confrontation the two Chinas.

Vega points out that there are few Dominican politicians who have not been on a junket to Taiwan. Former President Mejia boasted that he had been to Taiwan over 20 times. This is Taiwan’s attempt to delay the inevitable. Vega predicts that the Dominican Republic will eventually recognize mainland China in exchange for some sort of aid package, a hydroelectric project or more efficient power generation units, or perhaps, he says with tongue in cheek, they will donate a metro system.

In the meantime, trade between China and the Caribbean islands has increased by an extraordinary 40% over the past year, especially in things like gas and oil from Trinidad and Tobago, bauxite from Jamaica and nickel from Cuba. And remember, he says, that China was on the point of a buy-out of Falconbridge, which would have produced the contradiction that the “Chinese of Bonao”(a part of Dominican folklore) would have belonged to a country that was not recognized by the Dominican government. Last year, Falconbridge paid US$136 million in salaries, taxes, dividends and local expenses to the economy. At the beginning of the year a 120-strong Chinese delegation visited Jamaica where they promised to send tourists just as they have done to Barbados, Antigua, the Bahamas, Dominica and St. Lucia, and a Chinese delegation was in Cuba last year. China is now an observer at the OAS and expects to be one at the IADB very soon. In the case of the DR, where China already has a commercial office, it is just a matter of time.