Palau holds out as China squeezes Taiwan’s allies

Tiny tourism-reliant Pacific nation defies pressure from its biggest source of
visitors

Financial Times
Date: 12/30/2017
By: Edward White in Taipei and Nicolle Liu in Hong Kong

Palau, a tiny Pacific nation of just 21,500 people, has vowed to

Tommy Remengesau,
Palau’s president, and Tsai Ing-wen, leader of the Democratic Progressive party, which has replaced the more
China-friendly Nationalist party in power in Taiwan © EPA/Bloomberg

resist renewed pressure from Beijing to cut its diplomatic links
with Taiwan.

One of just 20 nations keeping formal diplomatic ties
with Taiwan, Palau was named in a notice issued by Chinese
officials last month warning travel agencies that it was illegal to
advertise group tours to destinations not on China’s approved
list.

But while a clampdown on Chinese visitors would hurt the Palau
economy, the nation said it had no plans to switch its allegianceaway from Taipei.
“Palau is a country of laws, it is a democracy and we make our own decisions,” said Olkeriil Kazuo, spokesperson for Palau’s president, Tommy Remengesau.    [FULL  STORY]

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