MercoPress. South Atlantic News Agency

Paraguay plans to open trade office in Shanghai

One of the few countries left that has full diplomatic relations with Taiwan.

A Paraguayan delegation of government officials and private sector representatives will be travelling to China in the near future to begin conversations for the formal establishment of trade relations with Beijing, announced the country’s Foreign Affairs minister Hector Lacognata.

A Paraguayan trade office will be established in Shanghai and a similar one from China in Asuncion, said the minister who anticipated they should be operational at the latest in 2010. The trip of the delegation has two tentative dates, end of 2009 or early 2010.

Paraguay is one of the few countries in the world which still retains full diplomatic relations with the regime of Taiwan or Republic of China, considered a “rebel” territory by Beijing, or the Peoples Republic of China.

Taiwan’s influence in Paraguay and several Central American countries is based on strong financial support for those countries’ development. Precisely this last week Taiwan delivered the second 8 million US dollars instalment of a full award of 71 million US dollars.

The check was formally presented last week by Ambassador David Hu to Paraguay’s Finance minister Dionisio Borda in the presence of Foreign Affairs minister Lacognata.

“The Republic of China is pleased to collaborate with Paraguay in priority socially oriented programs”, said Ambassador David Hu. Minister Borda underlined that the funds will help “reactivate the Paraguayan economy”.

Another 8.8 million US dollars check will be handed next January, and again in July 2010, until the total sum of 71 million is delivered by 2013. The first major check for 24 million US dollars was granted in 2008.