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U.S. Refused $100 Million Offer From Taiwan, Newspaper Says

September 29, 1990

LOS ANGELES (AP) _ The Bush administration, not wanting to alienate China, refused Taiwan’s offer of about $100 million to help pay for the military buildup in the Persian Gulf, a newspaper reported today.

The United States wants to remain on good terms with China, which has one of five permanent seats on the United Nations Security Council, the Los Angeles Times reported in today’s editions.

The United States has depended on China in the Security Council to support sanctions against Iraq for its Aug. 2 invasion and subsequent annexation of Kuwait.

Taiwan made its $100 million offer through its Vice Foreign Minister C.J. Chen during his recent visit to Washington, the Times quoted unidentified diplomatic sources as saying.

U.S. officials have sought donations from other countries to pay for the deployment of thousands of American troops to Saudi Arabia and the Persian Gulf region.

But the administration refused the Taiwanese offer not wanting to upset Beijing, which has always opposed any official recognition of the Taipei government, the newspaper said. There was no immediate administration response to the report.

A spokesman at the Taiwanese Coordination Council for North American Affairs in Washington would neither confirm nor deny the offer.

″Speaking hypothetically, even if we did make an offer and it was turned down, we would be understanding,″ the unidentified spokesman said. ″If the sanctions fail to take effect, the Administration will still need the Communist regime’s cooperation.″

However, the Times said some sources indicated the Taiwanese government was angered by the rebuff.

U.S. officials apparently told Taiwan to give the money instead to Egypt, Jordan and Turkey, but Vice Foreign Minister Chen did not want to do this, the Times said.

Taiwan recently announced it would give $30 million to those countries.

President Bush and National Security Advisor Brent Scowcroft met with former Chinese ambassador to the United States Han Xu two weeks ago.

Han, a friend of Bush’s, came seeking a renewal of high-level contacts between the two countries that were broken after Chinese soldiers attacked pro-democracy demonstrators in Beijing’s Tiananmen Square in June 1989. Hundreds were left dead.

Update hourly