Taipei  - Taiwan President Chen Shui-bian on Thursday congratulated Paraguay's president-elect Fernando Lugo on his election win amid speculation that Lugo is mulling dropping Taiwan to recognize China.

"Taiwan and Paraguay have established diplomatic ties for 51 years and our cooperation projects are proceeding smoothly.

"I hope Taiwan and Paraguay's new government can strengthen exchanges and discuss the framework for future cooperation," Chen said in a telephone call.

Chen invited Lugo to visit Taiwan, while Lugo thanked Taiwan's concern for and assistance to Paraguay.

"Although our two countries are far apart, our people's feelings are very close. I hope our two countries can consolidate ties and I give my blessing to the Taiwan people," he said.

Lugo, a 56-year-old former Catholic bishop, won Sunday's election, bringing an end to the 62-year reign of the Colorado Party, which maintained close ties with Taiwan.

On Tuesday, at his first post-election news conference, Lugo hinted that Paraguay should recognize China.

Lugo will be inaugurated on August 15 for a five-year term.

Paraguay is one of the 23 countries which recognize Taiwan and Taipei's only ally in South America. (dpa)