Taiwan dithered over bid to join AIIB because it worried ‘how US would react’
Government prevaricated for two weeks before submitting AIIB application after Washington had no objections, says leaked document
A leaked document shows that official advisers strongly recommended that Taiwan join a Beijing-led international development bank, but the government prevaricated for two weeks and submitted its application at the last minute because it feared upsetting the United States, its main defence ally.
The government received an assessment report recommending the island join the Asian Infrastructure Investment Bank (AIIB) on March 18, the document reveals, but it submitted its application to join only on the deadline's final day, March 31, after it checked with Washington that it would have no objections.
The US is the main arms supplier to Taiwan, an island governed separately from the mainland since Nationalist forces fled there after losing the civil war to the communists in 1949.
Washington has expressed concerns about the future governance of the AIIB, saying that it should be open and accountable and enforce rigorous lending criteria. Analysts said the AIIB would increase Beijing's international influence and act as a counterweight to the US-dominated World Bank.
Taiwan began to assess whether or not to join the AIIB in November.
A 15-page report obtained by the South China Morning Post said joining the institution would be of great benefit to the island's economy. It would avoid Taiwan becoming isolated and marginalised and the island could "benefit from new investment opportunities in the areas of trade, medicine, information and environmental industries arising from helping Asian developing countries in promoting infrastructure projects", the report said.
The island could also use the bank as a way of helping to join other trading blocs in Asia. The only concern was the attitude of the US, the report said.