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Weekly Report - 3 May 2007

EASTERN CARIBBEAN: Taiwan loosens China's grip

Taiwan is bouncing back in the Eastern Caribbean just when it looked as if China was undermining its last bastion of strength. Grenada, St Lucia and Dominica have all dropped recognition of Taiwan for diplomatic relations with China and promises of bumper development-aid packages in the last few years. But, this week, St Lucia caused a diplomatic ruckus by re-establishing ties with Taiwan after 10 years of adhering to the "One China" policy imposed by Beijing. Determined to capitalise on this success, Taiwan is also making an audacious bid to lure Suriname away from China.

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