The British newspaper Financial Times revealed that Mario Abdo Benítez would have asked the government of the Republic of China (Taiwan) for a “billion dollar investment”, in order to resist internal pressure and remain allies.
The note, signed by journalists Michael Stott, from London, and Kathrin Hille, from Taipei, reports that “Mario Abdo Benítez says that citizens need to ‘feel the real benefits’ to avoid diplomatic change to China”.
In this sense, he refers that Marito has asked Taiwan to invest $1 billion in his country to help him resist the “enormous” pressure to change diplomatic recognition to his rival China. “We are working with the president of Taiwan. . . so that the Paraguayan people feel the real benefits of the strategic alliance,” Abdo told the Financial Times during a visit to the US.
“There is a Taiwanese investment of more than $6 billion in countries that do not have diplomatic relations with Taiwan, we want that $1 billion to be put in Paraguay,” he said. “That will help us build the case for the importance of this strategic alliance with Taiwan.”
Taiwan’s Foreign Ministry said Abdo’s hope for $1 billion in Taiwanese investment “would have profound significance for the Taiwan-Paraguay strategic partnership.” “The government encourages Taiwanese companies to visit the country and explore investments there,” the ministry said in emailed comments.
Paraguay is a major exporter of soybeans and beef, but its relations with Taiwan, which Beijing claims as part of its territory, have cost it access to the vast Chinese market. This has upset the powerful agricultural lobby of the South American nation. “Imagine what the producers say [agrícolas] when meat prices drop and they don’t have access to China,” Abdo said. “They ask you: ‘Please, we have to open up to the Chinese market. What does Taiwan give us when we are a country that could sell all its soybean and meat production to China?’”
Taiwan sent two investment delegations to Paraguay this year and a technological university it established in the country in 2017 has already educated 400 students. A study published in the journal Foreign Policy Analysis last year estimated that Paraguay’s alliance with Taiwan cost it the equivalent of 1 percent of gross domestic product per year in lost aid and investment between 2005 and 2014.
The alliance with Taipei also cost Paraguay access to coronavirus vaccines at a crucial time in the pandemic when supplies were only available in China. Abdo said that he had sent his health minister to speak with the Chinese consul in neighboring Brazil at the time. “You have three options,” the consul was quoted as saying. “You can be Chinese, which you are not, an ally of China, which you are not, or a poor country, which you are not either. These are China’s priorities.” Taiwan’s other main Latin American allies, Guatemala and Honduras, have told similar stories. Honduras said last year it was considering opening an office in China to ensure access to vaccines, prompting Taiwan to accuse Beijing of using coups for political and diplomatic gain.
RESPONSE OF THE PARAGUAYAN FOREIGN MINISTRY
In response to the publication, the Foreign Ministry clarified through a statement that “Paraguay does not place any conditions on the continuity of its relationship with the Republic of China (Taiwan)”.
He also made the following points:
1.- The President of the Republic, Mario Abdo Benítez, as on several occasions, reaffirmed Paraguay’s position regarding the excellent diplomatic, political and friendly relations with the government and people of the Republic of China (Taiwan).
2.- In order to continue strengthening the bilateral relationship and raise it to another level, during the interview, the President expressed the interest that part of the investment that the Republic of China (Taiwan) makes in other countries could also be channeled towards our country. , taking advantage of the excellent conditions that Paraguay offers for the establishment of foreign investments, and taking into account a strategic relationship. At no time during the interview did the President refer to conditioning the relationship with Taiwan, much less subjecting it to some amount, as stated in the note.
3.- The Government of the Republic of Paraguay reaffirms its interest in working with its strategic ally to advance in the investment plan and always thinking of the well-being of its peoples.
?? PRESS RELEASE: The Government of the Republic of #Paraguay does not put any condition to continuity
of its relationship with the Republic of China (#Taiwan) ??.➡️ https://t.co/Tl701K8u9s pic.twitter.com/yql43l7tMY
– Ministry of Foreign Affairs (@mreparaguay) September 29, 2022
