Taipei- Taiwan, which has spent lavishly on aid to maintain diplomatic ties with foreign countries, said Thursday it will now use funds more effectively and transparently to help foreign nations economically. The Foreign Ministry unveiled the new policies in Taiwan's first-ever White Paper on Foreign Aid Policy, a 52-page document which details the history of Taiwan's foreign aid, trends in international foreign aid, and changes in Taiwan's foreign aid policies.

Foreign Minister Fancisco Ou said the white paper reviews Taiwan's foreign aid policies in line with President Ma Ying-jeou's "flexible diplomacy" and Ma's instructions on foreign aid.

Ma took office in May 2008. He urged Taiwan and China to launch a diplomatic truce, to stop trying to win over other's diplomatic allies with cash and aid so that Beijing and Taipei can improve bilateral ties and seek reconciliation.

If the truce works, Taiwan does not rule out sending aid to countries which do not have diplomatic ties with Taiwan.

According to the new policy, Taiwan's foreign aid will be carried out in line with the Paris Declaration on Aid Effectiveness, with Progressive Partnership and Sustainable Development as the key note.

Taiwan will provide aid to needy countries through its foreign aid agencies, non-governmental organizations (NGOs) and international aid agencies.

The targets for foreign aid include developing resources, protecting the environment, combating infectious diseases, promoting education and eliminate poverty, the white paper said.

According to the document, Taiwan's 2008 official development aid (ODA) to its diplomatic allies totalled 430 million US dollars, accounting for 0.11 per cent of Taiwan's gross national income.

Taiwan, seat of the Republic of China government since the end of the Chinese Civil War in 1949, is currently recognized by 23 countries. More than 170 countries recognize China.

In the past, some small and poor countries benefited from the Taiwan-China diplomatic tug of war by switching recognition between Taiwan and China, depending on who offered more aid.(dpa)