THE NEW YORK TIMES "International"

Nov. 27, 1996

SOUTH AFRICA TO END TAIWAN DIPLOMATIC TIES

Johannesburg, Nov. 27 (Reuters) - Abandoning an attempt to have diplomatic relations with both Taiwan and China, the Government

said today that it would sever diplomatic ties with Taiwan. "We

have now granted diplomatic recognition to the Peoples Republic

of China." President Nelson Mandela said at a news conference

today. Diplomatic relations with Taiwan are to end in December

1997. Taiwan, which thus lost the biggest of the 30 countries

that recognized it, expressed regret for what Peter Cheng, a

spokesman for its Foreign Ministry, described as an "extremely

unfriendly decision." Asked what had happened to his goal of

ties both countries, Mr. Mandela said: "Beijing made it clear

they would not tolerate that."

Taiwan forecast recently that bilateral trade, at $1.9 billion

in 1995, would grow by 10 percent a year. It also offered the

prospect of a $3.5 billion petrochemical complex for South Africa.