China's central bank figure snubs dinner in Singapore

Asian Economic News, July 19, 2004

SINGAPORE, July 16 Kyodo

China's representative at a meeting of Asia-Pacific central bank governors boycotted a dinner Thursday hosted by Singaporean Deputy Prime Minister Lee Hsien Loong apparently in protest over Lee's recent visit to Taiwan, an official said Friday.

A spokeswoman for the Monetary Authority of Singapore confirmed that Su Ning, deputy governor of the People's Bank of China, and his delegation did not attend the dinner.

The Chinese delegation took part earlier Thursday in the annual seminar of the Executives' Meeting of East Asia-Pacific Central Banks, which groups 11 central banks and monetary authorities in the region.

The Straits Times daily said Su had earlier turned down an invitation to attend the dinner function arranged by the Monetary Authority of Singapore.

Su came to Singapore in place of Zhou Xiaochuan, the governor of the Chinese central bank, who canceled his visit in a show of protest at Lee's visit to Taiwan earlier in the week.

Singapore's Foreign Ministry said Sunday that Lee's visit to Taiwan was ''private and informal.'' He last visited Taiwan in 1992.

The Foreign Ministry said ''Singapore has consistently maintained a 'One China' policy'' and ''does not support independence for Taiwan.''

Analysts said even though Singapore leaders, including Lee's father, Senior Minister Lee Kuan Yew, visit Taiwan from time to time, China was especially upset about the recent trip because Lee is going to succeed Goh Chok Tong as prime minister in the next few months. Goh has said he plans to announce within the next few days the date for the transfer of power.

Another factor is that Lee's visit comes at a time of worsening cross-straits ties, and China has been provoked by media reports in Taiwan about the visit.

Singapore, which has an ethnic Chinese majority in its population, has been enjoying close economic and political ties with both China and Taiwan. China is one of Singapore's biggest trade partners and sources of tourists.