Chinese Government offers to help Government of Nauru repay $77 million loan to General Electric (Linked to Record ID#37645)

📋 Staff Comments

On July 21, 2002, then President René Harris of Nauru signed a joint communiqué in Hong Kong to establish diplomatic relations with the People's Republic of China (PRC). In the document, the Government of the Republic of Nauru recognized that 'there is but one China in the world, that the Government of the People's Republic of China is the sole legal government representing the whole of China and that Taiwan is an inalienable part of Chinese territory.' The declaration also contained an undertaking by Nauru to close its embassy in Taipei within one month, despite the fact Nauru had never had a diplomatic mission in Taiwan. This move followed the PRC's promise to provide a large aid package. That same day, the Republic of China (ROC or Taiwanese) government issued an ultimatum, demanding that the communiqué be withdrawn within 24 hours or it would take the initiative and sever diplomatic ties. There was much dissension within the Nauruan government over the move by Harris, which the President was alleged to have made on his own initiative. In the confusion, the Nauruan government did not respond to the ultimatum, which was extended an additional 24 hours, and the ROC followed through with its threat on July 23, 2002, breaking diplomatic ties that had existed since 1980. Then, in 2003, the Government of Nauru closed its embassy in Beijing, prompting speculation of an imminent resumption of ties with the ROC. The Government of Nauru ultimately re-established diplomatic ties with the ROC in May 2005. Consequently, many of the PRC-backed development projects that were announced or initiated in 2003 and 2004 were never fully implemented.

📚 Sources & References

• Nation left with 27 friends after Nauru defection; `CASH COMPETITION': China has offered US$60 million in aid and US$77 million toward debt relief to the tiny island-state of just under 12000 people
• China Issues New Warning To Taiwan
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• Tiny Nauru struts world stage by recognising breakaway republics
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• Foreign relations of Nauru
• Republic of Nauru COUNTRY ASSISTANCE PLAN 2001 – 2003
• Nauru Country Economic Report 2007
• CHINA AND U.S. TO HELP NAURU PAY DEBTS
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• CHINA
• NAURU SIGN JOINT COMMUNIQUÉ ON ESTABLISHING DIPLOMATIC TIES
• Votings and Proceedings of the Eighteenth Parliament: First Sitting of the Sixth Meeting on Thursday, 9th October 2008
• Joint Communiqué of the Government of the People's Republic of China and the Government of the Republic of Nauru on the Establishment of Diplomatic Relations Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.