Panama-Taiwan relations cool down

The political dispute between President, Ricardo Martinelli, and Vice President Juan Carlos Varela, has put a freeze on diplomatic relations between Panama and Taiwan.

When Martinelli took office, Taiwan donated a luxury Embraer Legacy 600 jet which was initially designated for search and rescue but became the presidential plane.The price listing in 2008 was $25.4 million. It was one of many donations from Taiwan totaling over $60 million.

The president refuses to give credentials to the Ambassador of Taiwan, Diego Chou, says La Prensa in retaliation for a meeting in Guatemala Varela and Taiwanese Foreign Minister of, Timothy Yang, according to diplomatic sources.

Taipei  has retaliated by doing the same with Jose Antonio Perez Iranzo [a naturalized SpanishPanamanian, the new ambassador of Panama in Taiwan, who waited at least three months for the Asian country to give him the nod. He received his credentials last week.