TAIPEI (TVBS News) — Palau President Surangel Whipps Jr.'s letter to U.S. senators in early February was unveiled on Friday (Feb. 16), stating China's attempts to persuade Palau to cut diplomatic ties with Taiwan in exchange for hotel bookings.
The letter was made public via a social media platform by Cleo Paskal, a researcher from the Foundation for Defense of Democracies, a U.S. think tank.
Paskal indicated that the letter described China's proposal for Palau to sever its relations with the U.S. and Taiwan, including China's offer to "fill every hotel room" in our tourism-based private sector – "and more if more are built."
The letter also mentioned China's proposed plan to operate a "call center" covering two acres in Palau at an annual cost of US＄20 million.
Whipps Jr. further cautioned that without immediate approval for the Compact of Free Association (COFA) aid, pro-China elements within Palau may arise, with potential fallout on its diplomatic ties with Taiwan.
