Threat or Conspiracy

As United States is on economical crisis, so it is hurting the world of his allies too. As China is rising as super economical power now and Taiwan is in the conspiracy. The officials of Kingdom of Saudi Arabia have threatened to halt oil exports to Taiwan over Taipei's reluctance to invest in Saudi Arabia's power and water desalination plant. The kingdom supplies 100 million barrels of oil to Taiwan annually. If Saudi Arabia stops oil import to Taiwan for two weeks, Taiwan will, not only face an oil crisis but also economically it will be down too. The kingdom feels cheating by Taiwan in delaying invest in the Independent Water & Power Provider Project (IWPP). It is shocking to know that Saudi officials threaten to the alley of United States of America.

The state oil monopoly Chinese Petroleum Corp (CPC) denied knowledge of Saudi Arabia's threat to stop oil exports and believed it was unlikely to happen. ‘CPC's deals with Saudi Arabia are carried out according to the terms and obligations of the contract, and will be not obstructed by other investment deals or be unilaterally terminated,' CPC said in a statement. CPC signed the purchase contract with Saudi Arabian state oil firm ARAMCO. It is an international enterprise with good international reputation. Over the past dozens of years, CPC has enjoyed good interaction with ARAMCO. Unilateral termination of the contract has never happened and will not happen according to the Chinese officials. How they are so confident?

As precaution, CPC has asked Taiwan's representative office in Saudi Arabia to check the press report, and hopes the public will not panic,' the statement said. Saudi Arabia switched diplomatic recognition from Taiwan to China in 1990, but Riyadh and Taipei have maintained close trade ties due to interference of United States and Jew lobby. According to United Daily newspaper of Taiwan, the Taiwan government in 2006 instructed the Taiwan Power Co, Taiwan Water Works Corporation, and Taiwan Cogeneration Corp to invest in IWPP, a power and water desalination plant in south-west Saudi Arabia. The 190-billion-dollar project is scheduled to start in 2010.

The Taiwan firms have teamed up with Saudi Arabia's Al Raihi and Al Khorayef companies to form a joint venture to bid for the project, and have passed the first-phase qualification screening. Of the 38 companies that took part in the first-phase, 11 have moved into the second-phase qualification screening. However, Taiwan's enthusiasm for the IWPP project has waned because of the presidential election in March and the upcoming change of government on May 20.

Taiwan's Economics Ministry has been reluctant to approve the investment plan and wanted to leave it to incoming President Ma Yinh- jeou's government to handle. In 2008, Taiwan twice requested a delay for submitting bids - from February to May and the deadline for submitting tender is now June 2. If Taiwan withdraws from the project, the daily said, the two Saudi Arabian firms may sue the country for damages and the Saudi Arabian government could suspend oil exports. The office of incoming president Ma Ying-jeou, who will be inaugurated on May 20, has not commented on the news report yet.

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