TAIPEI (Taiwan News) — The president of Palau has reportedly sent a letter to a U.S. senator alleging that China is offering to fill the country's hotel rooms with Chinese tourists and pay US$20 million a year for a "call center" in exchange for dropping diplomatic relations with Taiwan.

Cleo Paskal, a senior fellow at the Foundation for Defense of Democracies (FDD), on Thursday (Feb. 15) posted a photo to X of a letter reportedly written by Palau President Surangel S. Whipps Jr. to a U.S. senator whose name has been redacted. The letter, signed on Feb. 9, sought the senator's support in passing an amendment to provide funding for renewed Compacts of Free Association (COFA) treaties between the U.S., Palau, Micronesia, and the Marshall Islands that could be used as a counterbalance to China.

In the letter, Whipps pointed out that Palau allows the U.S. military to operate bases housing missiles and early warning radar systems. He cited a senior U.S. commander as saying that Palau is "part of the homeland" and has "never been more vital strategically."

A 20-year renewal of COFA was signed last year, but US$7 billion in funding has since been delayed. Whipps warned each day that this funding is not approved "plays into the hand of the CCP," and some leaders in Palau see Beijing's economic offers in exchange for cutting ties with Taiwan as attractive.

According to Whipps, China has already offered to "fill every hotel room" in the country's tourism-reliant economy "and more if more are built." He added that US$20 million in aid per year is also being offered in exchange for a two-acre "call center."

The Palau embassy in Taiwan has yet to respond to a request for comment from Taiwan News on Whipps' letter to the U.S. senator.

Letter reportedly written by Whipps to a U.S. senator. (X, Cleo Paskal image)