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Marshalls sees pat of geld la Taiwan

By Giff Johnson

THE Marshall Islands gov ernment is seeing dollar signs - with nine figure numbers - when it comes

to its new relationship with Taiwan.

The diplomatic links estab lished with the Republic of China in late November 1998 are being hailed by private sector leaders as “one of the most significant mile stones in the economic develop ment of the Republic of the Marshall Islands”.

Marshall Islands Foreign Minister Phillip Muller said in a nationally broadcast address to the parliament in mid-February -

immediately following President

Imata Kabua’s state visit to Taiwan - that agreements signed with Taiwan could bring a wind fall of as much as $lOO million to the Marshall Islands in the first year of relations with the Republic of China.

Muller told the Nitijela (parlia ment) that agreements were signed during Kabua’s state visit that will inject large amounts of funding for infrastructure and related economic development needs of the Marshalls. This includes $5O million to launch an

intergenerational trust fund that is pat terned on the successful Kiribati and Tuvalu funds.

In early May, Taiwan Foreign Minister Jason Hu and a large delegation is expect ed to make a reciprocal visit to Majuro to discuss specific aid and development pro

jects directly.

“The newly established relationship with Taiwan may be one of the most sig nificant milestones in the economic devel opment of the Republic of the Marshall Islands,” Majuro construction company owner Jerry Kramer.

The new relations and economic coop

eration “should result in hundreds of jobs, improvement of government services and a better standard of living,” said Kramer, who participated in the 46-member Marshall Islands delegation to Taiwan said to be the biggest ever for a state visit to Taiwan - that ended in mid-February.

According to Muller, the Marshalls and Taiwan signed agreements for cooperation in: * Agriculture and aquaculture develop ment - Taiwan is expected to re-establish an agriculture mission in the Marshalls soon, and $ 1.5 million has been earmarked

to launch the program that is designed to assist Marshallese farmers. * Civil aviation and airport improve ments - An air services agreement provid ing reciprocal landing rights in the two countries, as well as support to upgrade

Majuro’s international airport terminal,

runway and maintenance hangar are to be commenced with $25 million from Taiwan. * Infrastructure development - Taiwan has agreed to assist the Marshalls to finish paving roads in Majuro, and to complete an inter-island causeway that links crowd ed Ebeye Island, next to the Kwajalein missile range, with rural neighbouring

islands. Muller estimated that Taiwan will spend $5 to $7 million on these projects. * Fisheries access - An agreement was approved to license up to 42 Taiwanese purseiners to both fish in Marshalls waters and to transship fish from the Marshalls to canneries outside. The agreement aims to have Taiwan base vessels in Majuro, a move that would result in the fishing fleet buying fuel and supplies locally, using the dry dock and local companies for mainte nance of nets and equipment, and spending money at local hotels, restaurants and bars.

Muller estimated this would inject $lO to

$2O million a year into the local economy.

But it’s not only government leaders who are singing praise for the result of the President’s state visit to Taiwan in February.

Foreign Minister Jason Hu announced to the delegation that it was “Taiwan’s intention to make the RMI a showcase of the relationship,” Kramer said. “All of the Marshall Islands delegates (on the trip) were excited about the prospects”.

The possibilities for cooperation with the Republic of China include agriculture, fisheries, air transportation, refuse collection, tourism and other areas, he added.

The trip offered “us an opportu nity to show the Taiwanese pri vate sector that there is a vibrant business sector in the Marshall Islands,” said Sam Smith, gener al manager of Gibson’s one of the largest retail stores in the country.

“We have established business contacts and met Taiwan business people first hand.”

Diplomatic ties between the two coun tries is opening up new possibilities for Taiwanese investment in the Marshalls, said Patrick Chen, the president and chief executive officer of Bank of Marshall Islands .

“Now, the Taiwan government will encourage business people to come here and invest,” said Chen, a Taiwanese who now holds Marshall Islands citizenship after many years residence in Majuro.

“Before it was different. Investors weren’t sure who to talk to about invest ments, and whether they could recover their money.” ■