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Chinese assets in Tonga threaten future of Pacific country. “The cash looks appealing and simple upfront, you better browse the small print,” Culvahouse told AP.

Chinese assets in Tonga threaten future of Pacific country. “The cash looks appealing and simple upfront, you better browse the small print,” Culvahouse told AP.

The offer of huge amount of money in low-interest loans to Tonga through the People’s Republic of China (PRC) could show difficult for the Pacific nation, state some analysts.

Tonga, a Polynesian kingdom greater than 170 Southern Pacific islands, currently owes U.S. $108 million to Asia’s Export-Import bank — comparable to about 25per cent of this gross product that is domestic according towards the Associated Press (AP). Now, the PRC has provided loans to greatly help reconstruct most of downtown Nuku’alofa, that has been damaged by rioters in 2006.

U.S. Ambassador to Australia Arthur Culvahouse Jr. is those types of issuing a caution by what he called “payday loan diplomacy.”

“The cash appears attractive and effortless upfront, you better browse the small print,” Culvahouse told AP. Read More