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International Relations
4.
Taiwan's reaction to the developments in the Soviet Union was rather confused. The first reaction was that the coup should mean no change in the policy of gradual improvement in relations, and the Vice Minister of Foreign Affairs said that the latest political changes in the USSR would not affect current relations with Taiwan. Shortly afterwards the tone had changed somewhat and the Executive Yuan's task force on the Soviet Union decided to suspend exchanges and review an earlier decision to provide aid through the Overseas Economic Cooperation and Development Fund. But following the defeat of the coup, attitudes were back to normal and the Vice Foreign Minister said that Taiwan welcomed democratic reforms in any communist country and would strengthen relations with them by every possible means, and the Soviet Union would be eligible for aid. The failure of the coup was obviously very welcome in Taiwan and Premier Hau was quick to point out that it proved that communism is doomed to failure and that freedom and democracy have become the prevailing mainstream. Director General of the Board of Foreign Trade said that Taiwan would be actively trying to expand trade with the Soviet Union. Taiwan was also pleased to have achieved a fishery cooperation memorandum which was signed by the Deputy chief of the Fishing Production Company of the Soviet Fishery Department and a Vice Chairman of Taiwan's Council of Agriculture.
5.
The
Following a visit to France, the Minister of Transport and Communications suggested that Taiwan should use the attraction of the business opportunities of its development plan to pressurise foreign governments into establishing air links and easing visa restrictions on Taiwan. This prompted the United States to reply that there should be no predetermined bottom line nor should there be any political or diplomatic criteria in determining bidding qualifications. The proposal does not seem to have been taken up by the rest of the Taiwan establishment. Taiwan is engaged on consideration of its overall aid policy and practice with a view to drafting a new foreign aid bill. On 20 August, it was reported that Taiwan would join the European bank for Reconstruction and Development and donate $10 million to the fund. The name proposed under which Taiwan would participate was "Taipei China Europe Cooperation Fund". Taiwan's Vice President visited Costa Rica, Nicaragua and Honduras form 18 august and brought with him offers of substantial loans of $30 million to each country as well as further $15 million for Costa Rica.
6.
The Prime Minister of Fiji visited Taiwan in early August and signed a technical cooperation agreement on the development of the sugar industry. This was the highest level official document signed with Fiji which has diplomatic relations with China. Taiwan's agreement with the Philippines on fisheries continued to cause trouble. Under Chinese pressure, the Philippine government tried to back away from it and have it described as merely a record of discussion. Taiwan then threatened to cut off aid to the Philippines unless the Philippine government endorsed the
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