End to Taiwan ties nears as Honduras foreign minister goes to China

By Ben Blanchard and Gustavo Palencia

TAIPEI/TEGUCIGALPA (Reuters) -The Honduran foreign minister is travelling to China to “promote” the establishment of diplomatic ties, an official said, signalling the end is most likely near for the country’s decades-long relations with Taiwan.

At stake is China’s growing footprint in Central America, once a steadfast base for Taiwan and where the United States is worried about Beijing’s expanding influence in its backyard.

Honduran President Xiomara Castro tweeted last week her government would seek to open relations with China.

“Foreign Minister Eduardo Enrique Reina on instructions from President Xiomara Castro travelled to China on Wednesday to promote efforts for the establishment of diplomatic relations,” presidential press secretary Ivis Alvarado said.

China’s Foreign Ministry did not immediately respond to a request for comment.

A senior Taipei-based diplomatic source told Reuters that Reina going to China meant an announcement on forging relations was probably near.

“The die is cast,” the diplomat said, speaking on condition of anonymity as they were not authorised to speak to the media.

The move will leave Taiwan with diplomatic relations with only 13 countries.

Honduras denied on Wednesday it had demanded $2.5 billion in aid from Taiwan before its announcement to seek to open relations with China, instead saying the country had repeatedly asked Taiwan to buy Honduran public debt.

Speaking on Thursday to reporters at parliament, Taiwan Foreign Minister Joseph Wu said the situation with Honduras was “not very good”.

“The other side demanded a high price,” he added, though he did not directly confirm the $2.5 billion number, saying only that “the facts will out”.

China, which views Taiwan as its own territory with no right to state-to-state ties, has involved itself in the issue, Wu said, without giving details.

“The marks of Chinese involvement are very obvious,” he said.

But Taiwan will not engage in dollar diplomacy with China, Wu added.

China’s foreign ministry did not respond to a request for comment about Taiwan’s accusations on its involvement, which was reported late Wednesday by Taiwan’s official Central News Agency.

The Honduras crisis is happening ahead of a visit next week by Taiwan President Tsai Ing-wen to Guatemala and Belize, which remain allies.

Tsai is stopping in New York on the way there and Los Angeles on the way back, where she is expected to meet U.S. House Speaker Kevin McCarthy. Wu, asked to confirm that meeting, said it was still being arranged.

Reina said last week Honduras’ decision was partly because the Central American country was “up to its neck” in financial challenges and debt – including $600 million it owes Taiwan.

He said on Wednesday his country had repeatedly requested Taiwan buy Honduran public debt and that the $2.5 billion figure was “not a donation,” but rather “a negotiated refinancing mechanism”.

Wu, answering a lawmaker’s question, said Honduras’ demands were beyond what Taiwan could do and that it was not just Taiwan who was owed money.

“We have said to them previously the debt they owe us can be readjusted,” Wu said.

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