Violence fuelled by chequebook diplomacy between China and Taiwan

The violence which erupted in the Solomon Islands this week was fuelled by the bitter war of chequebook diplomacy being waged across the South Pacific by China and Taiwan.

The mobs which rampaged through the Solomons capital, Honiara, and burned down the historic Chinatown district were incensed by the appointment of a new Prime Minister they regard as being in the pocket of the Taiwanese.

They accused Snyder Rini and his predecessor, Sir Allan Kemakeza, of accepting millions of dollars in kickbacks in return for their recognition of Taiwan rather than the People's Republic of China.

"It's common knowledge here that the election of the Prime Minister was not a fair and free one," Joses Tuhanuku, an MP who lost his seat, said yesterday. "It's been corrupted by Taiwan and business houses owned by Solomon Islanders of Chinese origin."

The Solomon Islands is one of six South Pacific countries which recognise Taipei rather than Beijing in organisations such as the UN.

Both sides have been accused of using aid and development money as little more than outright bribes with which to buy allegiance from often corrupt Government elites.

When the protesters in Honiara were met with tear gas outside the Parliament building on Tuesday, they turned their anger on Honiara's ethnic Chinese population and torched up to 90 per cent of Chinatown.

The rioting which left parts of Honiara a smouldering wasteland was a grim reminder of the way in which interference by the two Chinas can taint politics and spark grass-roots anger in impoverished South Pacific countries.

"They compete to buy off politicians in these countries," said Clive Moore, an expert on the Solomons from Queensland University.

"Taiwanese officials are known to have briefcases full of dollars which they dish out to Government leaders. Everybody knows that Kemakeza's election slush fund came from the Taiwan Government."

For their part, Pacific countries have become adept at playing off the two Chinas against each other.

"In 2000 the Government of the Solomons asked Taiwan for US$150 million [$239 million] to preserve diplomatic relations," Professor Moore said. "That gives you an idea of how much money is involved. We're talking millions and millions of dollars."

Allegations of Mr Rini's cosy relationship with Taiwanese interests go back six years.

In 2000, when he was the Minister of Finance, he forgave A$40 million in import and export duties owed by mostly Asian-owned businesses operating in the Solomons.

Sir Allan was also involved in a financial scandal after he negotiated a A$30 million loan from Taipei and allegedly creamed off A$1.5 million for himself and his family.

An audit conducted last year by Australian officials found that at least A$18 million received from Taiwanese, Chinese and South Korean firms in return for forestry and fishing concessions had gone missing from the national coffers in just two years.

It is not just in the Solomon Islands where politicians have been seduced by Chinese or Taiwanese largesse.

The tussle between the two states has led to instability in Vanuatu, Papua New Guinea, Kiribati, Tuvalu and Nauru.

Vanuatu was mired in political chaos in 2004 when its Prime Minister, Serge Vohor, announced that he was switching diplomatic recognition from China to Taiwan.

His Cabinet rebelled, Mr Vohor was ousted, and Vanuatu eventually switched back to Beijing.