Taipei - Taiwan's economy shrank a record 8.36 per cent in the fourth quarter and was expected to contract 2.97 per cent this year, reflecting the battering the island is taking in the global economic downturn, a government agency said Wednesday.

The declines in the gross domestic product (GDP) was due mainly to the hit Taiwan's exports and industrial production has taken in the global slump and a resulting shrinking of domestic investments, the Directorate General of Budget, Accounting and Statistics said.

Taipei- The prime minister of the Pacific island of Tuvalu on Tuesday urged world leaders to fight global warming to save his nation from disappearing under the sea.

Prime Minister Apisai Ielemia, who is on an official visit to Taiwan, made the call while visiting a Taipei primary school and telling the school children the importance of protecting the environment.

Ielemia said that when he was small, he used to play on the beach which was large and beautiful. But the beach is becoming smaller as the sea level keeps rising. Tuvalu children now have little chance of playing on the beach, he said.

Taipei - Taiwan's stocks ended 2.17 per cent lower Tuesday, despite a government-initiated bailout move to save a financially troubled dynamic random access memory (DRAM) maker, dealers said.

The TAIEX stock index opened lower and extended its downward trend to close at 4,491.78, down 99.48 points or 2.17 per cent from Monday's trade.

Market dealers said investors were not optimistic about the prospect of DRAM companies even after a banking consortium agreed to lend 3 billion Taiwan dollars (87 million US dollars) to help improve the financial condition of struggling DRAM maker ProMOS.

Taipei- Tuvalu Prime Minister Apisai Ielemia arrived in Taiwan Saturday for a five-day visit to further cement ties with the island. "Prime Minister Ielemia's visit will help promote further cooperation and understanding between our two countries," said Henry Chen, spokesman of Taiwan's Foreign Ministry.

Chen said while in Taiwan, Ielemia will meet with President Ma Ying-jeou, Premier Liu Chao-shiuan and Foreign Minister Francisco Ou and exchange with them issues of mutual concerns and cooperation.

Taipei  - An improvement in Taiwan's ties with China has resulted in the island considering sending its ancient Chinese treasures on exhibit in China, but Taiwan is first seeking assurances that the artworks would be returned.

The concern surrounding their return is so high that Taiwan, which holds the bulk of the imperial art collection of China after spiriting most of it to the island at the end of the Chinese Civil War, is demanding China sign a promise called the Law of Guaranteed Return to send the items back to Taiwan at the end of the exhibition.

Taipei - A Taiwan county is offering free coffee, a rose and a condom on Valentine's Day, a newspaper said on Saturday.

The Public Health Department of Ilan County in east Taiwan has announced that anyone who visits the 85 Degree Bakery Cafe in Ilan on Saturday, Valentine's Day, can get a free cup of coffee, a rose and a condom, the Liberty Times reported.

The 85 Degree Bakery Cafe, Taiwan's largest coffee chain, has seven outlets in Ilan County.