Taiwan president makes deals on Latin America trip

Taiwan President Chen Shui-bian, stung by his party's election rout and a diplomatic defection to rival China, met leaders around Latin America this week in a bid to avoid losing any more allies before he steps down in May.

Taiwan looks to its 23 diplomatic allies worldwide for political legitimacy as China, which has 171 allies, steps up pressure on those mostly small, impoverished nations to break ties.

The African nation of Malawi cut ties with Taiwan on Monday after 41 years of relations and established links with China.

China has claimed Taiwan as its territory since the end of the Chinese civil war in 1949 and pledged to bring the island back under its rule, by force if necessary.

Further shaking Chen, his Democratic Progressive Party suffered an overwhelming loss in a parliamentary election on Saturday, in part because voters believe the party has done too little to help Taiwan's economy.

To fortify relations in Latin America during his trip, Chen announced Taiwan would pay $40,000 to rebuild a hurricane-damaged school and hospital for its newest ally St. Lucia, a 170,000 population Caribbean nation.

Chen also agreed to be a spokesman for St. Lucia's tourism industry but said it was scenic enough to get by without his aid.

In Guatemala, for the inauguration of President Alvaro Colom Caballeros, he met the heads of state from five allied Central American countries and several non-allied nations, including Costa Rica, which broke tied with Taiwan in June.

"All (the allies) said in meetings they would not change their positions and would continue to support Taiwan," Presidential Office spokesman David Lee said.

Although Lee said no new aid had been pledged to Central America, local media quoted a Taiwan diplomat saying the island had donated $6 million to Panama for construction projects.

Riling China, which opposes official contact between Taiwan and the United States, Chen stopped in Alaska to refuel his plane en route to Latin America and on his return to Taipei. (Reporting by Ralph Jennings; Editing by Alex Richardson)