The Federated States of Micronesia (FSM) held talks with Taiwan in February about switching diplomatic ties for $50 million (¥6.8 billion) in assistance after frustrations with China, the outgoing president of the Pacific island nation has said in a letter.
Tensions between the United States and China for security influence in the Pacific islands are rising, and FSM President David Panuelo was a prominent critic of China's attempt to strike a 10-nation security and trade pact.
Panuelo lost his seat in Tuesday's national poll, election officials confirmed.
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