Honduras Diplomatic Relations Severed: Impact on CABEI Membership and International Status

2023-07-24 06:30:26
2023-07-24 14:30 Economic Daily reporter Chen Meijun/Taipei real-time report Chen Chong, former president of the Executive Yuan.File photo of the United Daily News / Photo by reporter Zeng Yuanxin

Chen Chong, former president of the Executive Yuan, pointed out today (24th) that my country’s diplomatic ties in Central America have been lost one following another. Although due to diplomatic wrestling, the situation is not as good as others, but the impact of the severance of diplomatic relations by other countries is far less than that of Honduras. Because the Republic of China is a member of CABEI (Development Bank of Central America), CABEI is headquartered in the capital of Honduras. After severing diplomatic relations with Hongguo, the only official member of CABEI with diplomatic relations is Guatemala. Will it maintain its membership in the future? Does it affect loans, bond recovery or shake the status of international legal persons? Currently unknown.

Chen Chong said that the Economist magazine, which has always been serious, had a short article “Dress to impress” (“clothes” made a big splash) some time ago, talking regarding diplomacy and clothing in a relaxed tone. The article started with Honduran female president Castro’s visit to Beijing. During the military parade and meeting with Xi Jinping, she wore red trousers, shirts, and scarves. Foreign media believed that the distinguished guests intended to use the landlord’s “national color” to highlight goodwill and win favor. In fact, there are many examples of female guests wearing red in history. For example, Mrs. Nixon (1972), Mrs. Obama (2014), and Mrs. Trump (2017) all wore red suits when they visited mainland China. Even Indian Prime Minister Narendra Modi wears a red kerchief on Nehnu’s outfit, not to mention the red ties of countless leaders.

During the visit to Beijing, while President Hongguo smiled brightly, President Tsai on the other side of the strait might not help feeling sad, because Kastrue’s ambitions and even his luggage were full, which was just an extension of the severance of diplomatic relations with the ROC in March when the flag was lowered. For Taiwan, not only will it lose one diplomatic relationship, but it will also lose one free trade agreement and one tax agreement among the already single-digit free trade agreements. Fortunately, the bilateral trade between the two countries is less than 200 million U.S. dollars, so the actual economic and trade losses should not be large.

Chen Chong pointed out that the Republic of China and Honduras established diplomatic relations very early (1941). 50 years ago, the Republic of China began to assist Hongguo in power construction, agricultural cultivation, processing and production. In the early days, there were even rumors that Dai Hongguo built a government office for the Ministry. It is said that because of the high quality, there were still discord among government agencies. In 2020, there was a shortage of vaccines. Hongguo went to Beijing to set up a business office to get it. After the United States and Taiwan successively donated vaccines, it began to ease. In short, there have been many disturbances along the way.

According to Chen Chong’s analysis, my country’s Central American diplomatic relations have been lost one following another. Although due to diplomatic wrestling, the situation is not as good as others, but the impact of the severance of diplomatic relations by other countries is far less than that of Honduras (this should be the reason why the government sent Vice President Lai to visit last year). Because the Republic of China is a member of CABEI (the Development Bank of Central America), the headquarters of CABEI is located in the capital of Honduras. The Republic of China joined in 1992. It is not only the member with the largest investment outside the region, but following eight capital increases, its shareholding has reached 11.37%. After Hongguo broke off diplomatic relations, the only official member of CABEI with diplomatic relations is Guatemala. Can it maintain its membership in the future? Will it affect the recovery of loans and bonds? Even shake the status of international legal person? Not yet known.

Chen Chong said that in March 2020, the U.S. Congress passed the Taiwan Allies International Protection and Enhancement Initiative Act (referred to as the Taipei Act) because it realized the importance of maintaining a certain number of diplomatic relations with Taiwan and the safety of its huge foreign exchange reserves. Just looking at the capital TAIPEI deliberately embedded in the name of the law, it is clear that the two parties in Congress sincerely support Taiwan’s foreign relations. However, three years following the passage of the law, Nicaragua and Honduras successively took measures to sever diplomatic relations. It seems that the intimidation effect does not seem to be great. However, the third paragraph of Article 5 of the law clearly stipulates that “For countries that seriously damage Taiwan’s security or prosperity, they should consider ways that are appropriate and in line with the foreign policy interests of the United States, and following consultation with Congress, change the economic, security, and diplomatic relations between the United States and these countries.” However, Nicaragua has always been at odds with the United States, and Washington’s inaction is predictable. However, if there is no action once morest Hongguo, the outside world will inevitably have paper tiger discussions.

Chen Chong said that Central America is located at the back door of the United States. The member states of CABEI have long had a good relationship with Taipei, but subtle changes have taken place this year. Will the government be careless if it will endanger the rights and capabilities of international law?

Honduras Chen Chong

further reading

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