Costa Rica scores big bucks in Beijing

Cozying up to China is paying off big for Costa Rica. President Oscar Arias has been in Beijing this week collecting millions in handouts from communist officials grateful for Costa Rica’s jilting of Taiwan earlier this year.

It’s Arias’ first visit since his Central American nation in June ended a 58-year diplomatic relationship with Taipei and switched its allegiance to Beijing, which views democratic Taiwan as a renegade province that it wants back in the fold. Chinese officials demand that countries with which it has diplomatic relations sever official ties with Taiwan and subscribe to its One-China policy -– that there is but one China and Taiwan is part of China.

(U.S. policy is as convoluted as chow mein noodles. The U.S. recognizes China’s claims on Taiwan. But it continues to sell arms to Taiwan and maintains quasi-diplomatic ties with it through the 1979 Taiwan Relations Act, much to the consternation of China, which does not recognize the legitimacy of this legislation.)

Costa Rica’s new buddies in Beijing reflect China’s growing economic clout in Latin America. Arias admits that Costa Rica dumped Taiwan to attract more Chinese investment and to gain access to China’s vast consumer markets.

It’s working. This week Costa Rica scored $20 million from China for disaster relief from recent flooding, another $27 million for “technical and economic cooperation” and at least $140 million in export contracts for Costa Rican businesses.

China National Petroleum Corp. announced plans to invest millions to help Costa Rica’s state-owned energy company RECOPE boost refining capacity. And the two nations said they are looking into prospects for a bilateral free-trade agreement.

Now that’s checkbook diplomacy.

Posted by Marla Dickerson in Mexico City