Taipei- Taiwan's incoming President Ma Ying-jeou will visit Guatemala and Paraguay in autumn to strengthen bilateral ties, a newspaper said Friday.

The United Daily News said Ma, who will be inaugurated on May 20, would visit both countries and maybe Taiwan's other Latin American allies in July or August.

Ma hopes to attend the inauguration of Paraguay's president-elect Fernando Lugo, who won the April 20 presidential election, and will be sworn in on May 15 for a five-year term, the daily said.

Preserving diplomatic ties with Taiwan's 23 allies will be one of Ma's top tasks, who seeks peace with China over Taiwan's unresolved status.

Latin America and the Caribbeans pose a diplomatic battlefield for Taiwan and China as 12 of its diplomatic allies are in this region.

But Taiwan's ties with Latin American allies are shaky after Costa Rica - Taiwan's ally of 60 years - dropped Taipei to recognize Beijing on June 1, 2007.

To this end, China agreed to give Costa Rica a 60-million-dollar loan, buy 300 million dollars in bonds issued by the Costa Rican government and build a 35,000-seat stadium for the Central American nation.

On Monday, Chinese Vice Premier Hui Liangyu led a delegation to Costa Rica to celebrate the first anniversary of the two countries' launch of ties, promising new aid to consolidate ties.

The new aid includes a 40-million-dollar loan to Costa Rica's small-and-medium-sized enterprises, 10 million dollars to the Ministry of Finance and Economic Planning and
200 police cars to Costa Rican police.

Costa Rica's change of sides has caused other Taiwanese allies to consider embracing China in order to benefit from the country's rising political influence and economic boom.

After winning the April 20 election, Lugo said Paraguay was the only nation in South America which did not have diplomatic ties with China which he felt was not right.

Taiwan told Lugo that Taipei did not object to Paraguay's developing ties with China as long as Taiwan's interests are not sacrificed.

Taiwan accepts foreign countries' dual recognition of both Taipei and Beijing, but China - which sees Taiwan as its breakaway province - demands foreign countries sever ties with Taipei before they can launch ties with Beijing. (dpa)