TAIPEI, Taiwan (AFP): Taiwan on Thursday severed diplomatic relations with Grenada after receiving formal notification from the Caribbean state that it had opened official ties with China, the foreign ministry said.
"We condemn China for applying tactics to lure away our allies. We refuse to play the 'dollar diplomacy' game with Beijing and we also refuse to accept blackmailing from Grenada," foreign ministry spokesman Michel Lu told AFP.
This latest setback means Taiwan is now recognized by just 25 countries, mostly small states in Africa, Latin America and the Pacific.
The announcement came a week after Grenada dumped Taipei to recognize Beijing, signing a communiqué to establish diplomatic ties with the mainland.
Only hours beforehand, Taiwan President Chen Shui-bian left for visits to the South Pacific islands of Palau and the Solomon Islands, pledging to boost Taiwan's international profile.
Grenada was the fourth country defecting to China since pro-independence President Chen took office in May 2000, following Macedonia, Nauru and the Commonwealth of Dominica.
The spokesman said China and Grenada had "hurt and embarrassed" Taiwan by opening diplomatic relations ahead of Chen's visits.
"We lodge the strongest protest to China and we are also disappointed at Grenada Prime Minister Keith Mitchell," Lu said.
Lu also attacked Grenada for trying to use China as a bargaining chip to demand more financial aid from Taiwan.
Taipei and Beijing, separated in 1949 after a civil war, have engaged in a diplomatic tug-of-war, luring away each other's allies with generous financial packages.
The spokesman attacked Grenada for cashing in on the cross-strait confrontation, saying the Caribbean state had requested 245 million US dollars from Taipei for a five-year cooperation plan.
Taiwan has extended 28 million dollars in loans to Grenada since the opening of official relations in 1989.
Taiwan already summoned its ambassador to Grenada home last December in protest after Mitchell paid a visit to Beijing.
Beijing scored last month when the tiny Pacific island of Vanuatu withdrew a communiqué recognizing Taipei and sacked prime minister Serge Vohor who inked the pact in Taipei despite his country's existing ties with Beijing.
But Lu said Taiwan still considered its diplomatic ties with Vanuatu "valid" until it received formal notification from the country.