ST GEORGE'S, Grenada (AP) - China has sent an ambassador to Grenada, the latest step in establishing diplomatic ties with the Caribbean island. Ambassador Shen Hongshun presented his credentials to Governor-General Sir Daniel Williams on Monday. Grenada established relations with China in January, prompting rival Taiwan to sever ties with the Caribbean island. The Asian rivals for decades have used dollar diplomacy to win over small Caribbean nations. China agreed last month to help rebuild Grenada's national stadium and offered it funds for scholarships and development. Williams thanked the Chinese government for helping the island recover from Hurricane Ivan, which wrecked Grenada in September. "Following the destruction by Hurricane Ivan we are very grateful to your government for assistance," Williams said. The Chinese ambassador promised "to enhance the friendly relations and co-operation between our countries". Taiwan, which had offered US$40 million to held rebuild the cricket stadium and US$10 to help Grenada recover from Ivan, has accused Grenada of exploiting the rivalry between Taipei and Beijing to get more financial aid. Grenadian Prime Minister Keith has been vague about his grievances with Taipei, but said relations have deteriorated since Taiwanese President Chen Shui-bian was elected in 2000. Though democratic Taiwan is self-governing, communist Beijing insists it's part of China and shouldn't have formal relations with other countries. The two sides split amid civil war in 1949. Grenada was one of 27 mainly African and Latin American nations that recognise Taiwan instead of China. The Taiwanese use such allies to shore up their claim of being a sovereign, independent nation. Taiwan lost Dominica to China last year after Beijing promised $112 million in aid to that Caribbean island. Reprinted from jamaicaobserver.com