Peters slams Pacific's chequebook diplomacy

Foreign Minister Winston Peters has warned of the dangers posed by chequebook diplomacy in the Pacific, citing Taiwan's involvement in the Solomon Islands as an example.

He said today New Zealand actively discouraged that type of diplomacy, as well as aid with poor accountability, gifts and other practices which encouraged corruption and poor governance.

"Those who seek to manage their relations with the region in this way not only do great harm but also run significant risks to their own international reputation," he said in a speech to the Commonwealth Parliamentary Association's Australian and Regional Conference in Wellington.

Mr Peters did not identify any countries in his speech but during a discussion with delegates after delivering it he was asked which ones he had been referring to.

"I think Taiwan's involvement in the recent blow-up in the Solomon Islands is irrefutable," he said. "I think they were engaged in chequebook diplomacy. I think the outcome was disastrous."

During elections in the Solomon Islands in April, following months of violence, it was reported that Taiwan was alleged to have bribed MPs in a bid to gain diplomatic allegiance.

At the time, China accused Taiwan of "grossly and wantonly promoting dollar diplomacy".

Mr Peters said New Zealand was involved, alongside Australia, in trying to repair the situation.

"I think we're entitled to say 'why don't you guys cut it out'," he said.

"And I think friends of Taiwan should be telling them as well, because they're friends of ours: 'Look, that's not the way things can be done here. Look what's just happened. You're impairing the potential growth of democracy with direct cash transfers'."

Mr Peters said one Solomon Islands MP had gone so far as to complain that he switched sides because he was not paid.

"He said that publicly -- 'I didn't get the cash'," Mr Peters said. "It's catastrophic and I think we've got a right to be darned annoyed at it because once you get one coup you get a habit for it.

"It has a ripple effect, it's damaging for our area and we should, I think, move as fast as we can, in any way we can, to litigate against that sort of thing happening."

In his speech, Mr Peters said external pressure on small Pacific Island states was growing, with more and more countries seeking to exert their influence in the region.

"While such engagement offers the prospect of very real benefits, there are genuine risks that small island countries will be overwhelmed by the complexity of multiple engagements," he said.

"New Zealand encourages external partners to respect the critical local development and security needs of the region, and not overwhelm these in pursuit of their own external agendas."

- NZPA