Nicaragua seeks 495-million-dollar loan from Taiwan

Feb 24, 2007, 11:27 GMT

Taipei - The new Nicaraguan government is seeking a 495- million US dollar loan from Taiwan to develop Nicaragua's agriculture, a newspaper reported on Saturday.

The China Times said the loan was among items in the cooperation agreement signed between Nicaraguan President Daniel Ortega and Taiwan President Chen Shui-bian, when Chen attended Ortega's inauguration on January 10.

The agricultural loan came to light as the Nicaraguan parliament has set up special committees to review the three cooperation pacts signed by Ortega with Taiwanese, Venezuelan and Iranian president when they attended Ortega's inauguration.

Nicaragua might also have sought loans for developing Nicaragua's energy, education and construction sectors as well, the paper said.

Details of the cooperation agreement will be finalized when Nicaraguan Foreign Minister Samuel Santos visits Taiwan next month, the paper said.

The paper said the new Nicaraguan government was squeezing money out of Taiwan as one of the 24 countries which still recognize it.

The paper quoted an unnamed Sandinista official as saying that Nicaragua plays a vital role in preventing Central Americans nations from dropping Taiwan to recognize China. Therefore, Taiwan has no bargaining chips when Nicaragua asks for aid.

The official said that although Ortega has pledged to maintain diplomatic ties with Taiwan, he was not happy with Taiwan's anti- Ortega stance when he was running for president in 2006.

Taiwan's ambassador Hung Ming-ta threatened that if Ortega won the election, Taiwan would shut its embassy and would not even leave a trade mission in Nicaragua, the Sandinista official said.

Taiwanese businessmen in the Taiwan Industrial Zone also threatened to return to Taiwan, and urged their Nicaraguan workers and the workers' family members not to back Ortega, he said.

Since Ortega won the presidential election last November, Taiwan has expressed concern about its ties with Nicaragua.

In 1985, Ortega's leftist Sandinista government cut ties with Taiwan to recognize China. Nicaragua resumed ties with Taipei in 1990 when Violeta Barrios de Chamorro, a political moderate, defeated the former revolutionary leader at the polls and became president.

During his campaign to return to power, Ortega vowed to resume diplomatic ties with China and only maintain trade ties with Taiwan.

But after he won the election, he said he would make no drastic changes in his economic and foreign politics, including in ties with Taiwan.

But after he was sworn in, Ortega assured President Chen that Nicaragua would maintain diplomatic ties with Taiwan while developing trade ties with China.