The outgoing president of the Federated States of Micronesia (FSM), David Panuelo, in a letter has accused China of "political warfare" in the Pacific nation and of bribing Palikir officials.

In the 13-page letter, obtained by CNN, David Panuelo alleges China is preparing to invade the self-ruled island of Taiwan, and has engaged in bribery, political interference and even "direct threats" to ensure the Federated States of Micronesia (FSM) remains neutral in the event of war.

"China is seeking to ensure that, in the event of a war in our Blue Pacific continent between themselves and Taiwan, that the FSM is, at best, aligned with the PRC (China) instead of the United States, and, at worst, that the FSM chooses to 'abstain' altogether," he wrote. 

Panuelo also accused China of "political warfare" in his country, which he claimed included overt activities -- such as political alliances, economic measures and public propaganda -- and clandestine acts such as "bribery, psychological warfare, and blackmail".

"One of the reasons that China's political warfare is successful in so many arenas is that we are bribed to be complicit, and bribed to be silent. That's a heavy word, but it is an accurate description regardless," he wrote in the letter.

China dismissed the letter's contents as "smears and accusations."

"I would like to emphasize that China has always upheld the equality of all countries -- no matter their size -- and has always respected how Micronesia chooses its own development, based on its own circumstances," Chinese Foreign Ministry spokesperson Mao Ning said on Friday in a press briefing.

Panuelo, whose term as president of Micronesia is set to end in two months after losing his seat in the recent general election, has been a vocal critic of China's expanding influence in the South Pacific. 

Last May, in a separate letter to 22 Pacific leaders seen by CNN, Panuelo said the draft proposal was intended to shift Pacific Island nations with diplomatic ties to China "very close into Beijing's orbit."

He argued that in addition to impacting the sovereignty of Pacific Island nations, signing such an agreement could bring about a new "Cold War" amid tensions between China and the West. 
 

Image courtesy: AFP