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Philippines and New Zealand in talks for defense pact

The Philippines and New Zealand have begun negotiating an agreement that would allow them to deploy troops on each other’s soil, the two countries said yesterday, as concerns over maritime tensions with China grow.

Manila has been seeking to boost defense ties in the Asia-Pacific region and beyond in the face of China’s growing confidence in asserting its claims over the hot spot South China Sea.

A first round of talks was held in Manila on Thursday last week between the Philippines and New Zealand’s defense departments, they said in a joint statement.

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Pence backs strong US-Taiwan ties

Former US vice president Mike Pence yesterday vowed to continue to support US-Taiwan relations, and to defend the security and interests of both countries and the free world.

At a meeting with President William Lai (賴清德) at the Presidential Office in Taipei, Pence said that the US and Taiwan enjoy strong and continued friendship based on the shared values of freedom, the rule of law and respect for human rights.

Such foundations exceed limitations imposed by geography and culture, said Pence, who is visiting Taiwan for the first time.

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Newsflash

Chinese central bank Governor Zhou Xiaochuan (周小川) said that local-government financing vehicles using land as collateral may pose risks for the nation’s banks.

“When land prices rise, there may be over-valuation of land,” Zhou said at a press briefing in Beijing yesterday. “In the future, if land prices fall, there may be a difference in the assessment of the loan.”