China rejects claims its aid is affecting Pacific governance

Updated June 13, 2008 20:57:00

China's government has rejected a report from an Australian foreign policy think tank, which has found Beijing's aid program is affecting governance standards in the South Pacific.

Our Pacific Correspondent Campbell Cooney says while China keeps details of its aid program secret the Lowy Institute research found from public sources its aid spending in the Pacific went from 33 million US in 2005 to 293 million in 2007.

Research leader Fergus Hanson says the money is only provided to the eight Pacific Island nations with a One China policy to ensure they are not tempted to change allegiance to Taiwan.

But Mr Hanson says the Chinese aid also has a negative affect.

"A secretive aid program doesn't work in the interest of fostering good governance or accountability," he said.

The Chinese government has rejected the report and its findings.

Speaking in Beijing, Foreign Ministry spokesman Qin Gang says Chinese aid is only provided to safeguard peace and development momentum and there are no strings attached to its provision.

There is no public record of China providing aid, directly, to the six Pacific nations which recognise Taiwan.

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