Nicaragua has denied plans to break diplomatic relations with Taiwan after rumours suggesting it would follow Costa Rica’s decision to favour the People’s Republic of China.

Below is an article published by DPA – (Deutsche Presse-Agentur)

Managua, Nicaragua - Nicaragua on Wednesday [13 June 2007] denied that it was planning to end relations with Taiwan in favour of China after media in Taiwan reported that a breakup was imminent.

'Nowadays we have diplomatic relations with' Taiwan, Nicaraguan Foreign Minister Samuel Santos told journalists.

Taiwanese daily Zhongguo Ribao reported Wednesday that Nicaragua and Saint Lucia would be next to drop ties with Taiwan and open relations with China, after Costa Rica did so on June 1.

The Taiwanese newspaper cited Nicaraguan Vice President Jaime Morales, who in a meeting last month with Taiwanese Foreign Minister Huang Chih-fang in Managua stressed the political and economic importance of China.

Santos attributed the report to an 'image struggle' between the ruling party and the opposition in Taiwan ahead of upcoming elections.

However, Santos admitted that the ruling party in Nicaragua, the leftist Sandinista Front, has 'magnificent relations' with the Communist Party of China.

Nicaraguan President Daniel Ortega said one year ago, when running for president, that he would establish full diplomatic relations with China if elected and limit ties with Taiwan to trade.

'We have always had a good political relationship with the People's Republic of China,' Santos said.

As to Costa Rica's recent breakup of diplomatic relations with Taipei, he said it would have no influence on the decisions of the Nicaraguan government.

'It is a sovereign jurisdiction of the government of Costa Rica which we totally respect,' Santos said.