AN EXPECTED agreement for diplomatic relations between Grenada and the Peoples Republic of China (PRC) has failed to materialise. And Prime Minister Keith Mitchell has returned from his official visit to Beijing without a deal to a break in relations with Taiwan and significant economic assistance and trade relations from China.

The breaking news late yesterday was that Mitchells demand for Chinese economic aid was too high and, therefore, had to return home empty-handed.

Chinas ambassdor to Barbados, Yang Zhikuan, who has been engaged in behind-the-scene negotiations with Mitchells government on possible China-Grenada diplomatic relations, confirmed yesterday (Thursday) that the Grenadian Prime Ministers just-concluded visit to Beijing had proven unsuccessful but was not prepared to go into details.

Mitchell, whose government had planned to sever its estimated 14 years diplomatic ties with Taiwan, which China officially treats as a renegade province of the mainland, is expected to make a statement today (Friday) as to why his mission to Beijing had turned out to be a failure and possibly indicate exactly what was the nature of his demand for assistance that had proven too high for the Chinese to oblige.

However, before leaving for Beijing last weekend with high hopes of securing Chinese help for Grenadas post-Hurricane Ivan reconstruction and redevelopment needs, Mitchell should have known that China does not, as a matter of policy, provide economic aid of any kind to a country that maintains diplomatic ties with Taiwan.

Therefore, though anxious to further reduce the comparatively handful of countries, approximately 26 of the 191 that are members of the United Nations, China would not have made an exception in the case of Grenada, although sympathetic to the consequences for the Grenadian people of the horrendous destrction by Hurricane Ivan.

Having led a mission to Beijing that included his Foreign Affiars and Foreign Trade Minister, Elvin Nimrod, and representatives of the business community, Prime Minister Mitchell now has the obligation to explain to the Grenadian people the extent of the price tag for the break in relations with Taiwan.

He would have known that when Dominica dramatically severed ties with Taiwan in March this year after some 21 years of relations between Roseau and Taipei, Chinas announced package of financial and economic assistance amounted to US$22 million, primarily as grants over a six-year period.

Grenadas post-hurricane needs are enormous, estimated by the Caribbean Development Bank at some US$815 million. Therefore, it would be expected that China would have been more generous to its aid allocation to Grenada. The question is how much was the demand from the Grenadian delegation and what was the limit placed by Beijing?

In our world of realpolitik there is no room for a long outdated two-China policy ever since the UN general assembly ousted Taiwan and admitted China as a member of the UN in 1971.

Whatever the factors that still bind just 26 countries  among them the CARICOM quartet of Grenada, Belize, St Kitts and Nevis and St Vincent and the Grenadines  to still hold on to Taiwan, it is becoming increasingly difficult to advance a moral argument in favour of such a policy.