Asia Times: PNG's PM counters Australian criticism of Taiwan links



	July 06, 1999	atimes.com

Oceania

PNG's PM counters Australian criticism of Taiwan links

PORT MORESBY - Papua New Guinean Prime Minister Bill Skate Monday rejected criticism from Australia that his attempt to secure badly needed loans from Taiwan in return for diplomatic recognition would not be in the interests of Australia or PNG. ''This is an issue between Papua New Guinea and Taiwan'' a spokesman for Skate told the Australian Associated Press. ''Papua New Guinea is an independent state, independent of Australia."

The spokesman said Skate and Foreign Minister Roy Yaki were currently in Taipei to discuss a number of issues with the Taiwanese government. ''They're exploring the possibility of establishing diplomatic relations with Taiwan,'' the spokesman said. Skate had not gone to Taiwan to beg for money but loans and trade were discussed, the spokesman said - adding that the trip, which was kept secret from the media and the public due to its sensitivity, had been approved by the PNG cabinet.

Following a report last week by The Australian Financial Review that Skate was seeking Taiwanese funds to support PNG's ailing economy, Australian Foreign Minister Alexander Downer said the move by PNG could jeopardize relations between Australia and China. China regards Taiwan as a renegade province. Australian Defence Minister John Moore later suggested that it might be better for PNG if the Skate government fell as a result of a no-confidence motion expected later this month.

Skate's spokesman said Moore's comments were ''very unfortunate and very ill-informed.'' The spokesman said Skate would report on the results of his trip to Taiwan to the cabinet later this week. Skate had arrived in Taipei on Saturday night , after flying to Cairns in Australia to visit his family.

Skate, who is fighting for his political life ahead of the expected no-confidence motion, told reporters last week that he needed to take three to four days off, away from the wheeling and dealing of PNG politics.

The spokesman for Skate rejected local media reports that Skate might resign as prime minister before the no-confidence motion if it would save his government. ''He hasn't said that to any of his close staff. I see no indication of the PM standing aside,'' the spokesman said.

(Asia Pulse)