TAIPEI - TAIWAN on Friday denied a media report it routinely offers extra aid to allies in exchange for their support in its campaign to join the United Nations.

'We have maintained friendly ties and cooperation programmes with our allies and have never provided additional aid to promote our UN bid,' the foreign ministry said in a statement.

'We respect and understand that some allies cannot openly support our bid this year due to domestic or international concerns and this will not affect our ties,' it said.

The statement came after Taiwan's China Times reported that ally Panama declined to back Taipei's recent bid to become a UN affiliate, rather than a member, apparently due to a lack of financial incentives.

The report cited unnamed diplomatic sources as saying that Taipei used to 'spend money' to get its allies to voice their support and some countries were still waiting for its offer this year.

However, Taiwan was not prepared to pay up for this month's attempt to join the 16 UN Specialised Agencies, it said.

In what is seen as an olive branch to Beijing, Taiwan this month launched a bid to join the 16 UN Specialised Agencies instead of seeking full membership of the world body.

Beijing said it would not accept the compromise. Taipei has played down China's refusal, saying warming relations should not be affected by the 'isolated event.' Taiwan lost its UN seat to China in 1971, and Beijing has blocked its past 15 attempts to return to the body.

The two sides split in 1949 after a civil war, but China still claims the island as part of its territory and sees any move towards UN membership as tantamount to seeking independence.

Only 23 nations formally recognise Taiwan rather than China. Both sides are accused of using generous financial packages to woo allies away from each other.

The newspaper report added that several of Taiwan's allies wanted to forge ties with China but Beijing ignored them for fear of damaging cross-strait ties. -- AFP