Red carpet treatment

The ambassador lives in a little bungalow by the beach, the Taiwanese flag flapping wanly in the tropical breeze from a white pole. It must be one of the loneliest postings in the world. China, of course, is not to be outdone in the cheque-book diplomacy stakes. It, too, has lavished money on its loyal South Pacific allies, paying for everything from sports stadiums to health schemes. Beijing frequently rolls out the red carpet for the leaders of countries like Tonga and Samoa. What makes its aid attractive is that it is bestowed with no strings attached, unlike the assistance received from the European Union or Australia and New Zealand, which rather awkwardly harp on about good governance and other tricky issues. As one Pacific analyst puts it: "Chinese aid is quite different from other countries, it goes straight for the jugular." But with China's increasing presence come tensions. Flinging money around among the political elite can exacerbate already high levels of official corruption. The business acumen of Chinese entrepreneurs stirs intense resentment in the famously laid-back Pacific, where initiative is often stifled by the custom of having to share profits with your extended family.