TAIPEI (Taiwan News) — President Tsai Ing-wen (蔡英文) on Sunday (March 26) refused to "engage in a meaningless contest of dollar diplomacy with China."
The Ministry of Foreign Affairs held a press conference announcing that Taiwan was officially terminating diplomatic ties with Honduras after 82 years of relations between the two countries. The ministry declared that "Taiwan remains unbowed & continues to work as a force for good in the world."
In the afternoon, Tsai issued an official statement via the Presidential Office website and her social media accounts announcing the severing of relations with Honduras. She expressed her conviction that Taiwan can foster the long-term development of its diplomatic allies through a "forward-looking and pragmatic approach."
However, she said that Taiwan "will not engage in a meaningless contest of dollar diplomacy with China." Tsai pointed out that Beijing has employed a variety of methods to "suppress Taiwan's international participation, intensify its military intimidation against Taiwan, and disrupt regional peace and stability."
Nevertheless, the president said that such tactics will not change the fact that Taiwan and China are not subordinate to each other. She said that Beijing cannot "erode the Taiwanese people's staunch commitment to freedom and democracy or our determination to engage wholeheartedly with the world."
Tsai argued that Taiwan's citizens have demonstrated to the world that "we do not give in to threats." She vowed that Taiwan's ties and coordination with diplomatic allies and like-minded countries and efforts to forward international security will "only expand and grow stronger."
She closed by saying Taiwan will continue to stand with its remaining diplomatic allies and like-minded global partners as we "work toward a better future for all."
Also on Sunday, Taiwan’s Minister of Foreign Affairs Joseph Wu (吳釗燮) revealed that Honduras had issued requests for financial aid for a hospital, a hydropower dam, and sovereign debt assistance that amounted to more than US$2.4 billion (NT$74.3 billion). Wu described the requests as unreasonable and possibly tied to talks with Beijing over a similar aid package.
Honduran Foreign Minister Eduardo Enrique Reina on March 15 said that his country severed ties with Taiwan because it refused to double aid and restructure debt. He said Honduras had asked Taiwan to double its annual aid package of US$50 million (NT$1.53 billion) and to consider "realigning" its US$600 million (NT$18.38 billion) in debt to Taipei, but failed to receive a satisfactory reaction.
In addition, Reina also said Honduras has needs that must be addressed in terms of energy, social policies, and refinancing of debt, which is "drowning the country." Regarding the debt, Reina pointed out that Honduras paid US$2.2 billion in 2022 and must expend an additional US$2.3 billion this year to service internal and external debt, which totals US$20 billion.
The people of #Taiwan have proven to the world that we do not give in to threats. We will continue to stand with our diplomatic allies and like-minded global partners as we work toward a better future for all. pic.twitter.com/cryJMRlRp3
— 蔡英文 Tsai Ing-wen (@iingwen) March 26, 2023