TAIPEI (Taiwan News) — The Swiss newspaper, Neue Zercher Zeitung (NZZ), interviewed Palau President Surangel Whipps Jr., who discussed the importance of diplomatic relations with Taiwan. 

In the interview published on Friday (June 14), Whipps confirmed that China has used tactics of economic coercion to try and sway the government of Ngerulmud to sever ties with Taiwan. Whipps explained that breaking off ties with Taiwan was not an option for Palau. 

Whipps, a guest of honor at Taiwan President Lai Ching-te's (賴清德) inauguration, said Taiwan and Palau have shared values of freedom and democracy. Taiwan has been a staunch ally of Palau for 25 years, out of the 30 years that Palau has been an independent country. 

“It is more important than ever that we stand by Taiwan,” Whipps said. “We want peace and stability; as a small country, we must join forces with countries that share these values.” 

Another major reason Palau will not abandon Taiwan is the special agreement Palau has with the U.S., known as the Compact of Free Association (COFA), said Whipps. Under this agreement, Palau has access to U.S. social services in exchange for funding and stationing of American troops in the country.  

Whipps said the U.S. military is refurbishing an airfield on the island of Peleliu and building a large radar system to monitor naval activity across the region. 

Over the decades, Taiwan has been a crucial partner, especially in agriculture and tourism. In contrast, Whipps says that the country’s experiences dealing with China have shown that Beijing is not a reliable partner. 

He noted how Beijing drastically reduced the number of tourists coming from China to use tourism as a bargaining chip. He also mentioned instances of many Chinese investors who fail to meet their obligations, often leaving projects unfinished and leaving local communities at a loss. 

Whipps added that peace in the Taiwan Strait must be maintained and that Beijing must stop its “saber-rattling” and threats toward Taipei. 

Peace in the Taiwan Strait is not only good for the world, but also for China, he said. He also stressed that peace can only be maintained by ensuring Taiwan and its allies present a credible military deterrent in the region.