Taiwan and the Marshall Island governments are negotiating terms for Taiwanese funding to a trust fund that will replace aid from the US in 20 years.
Taiwan has committed to supporting the Marshalls new trust fund and details of the agreement are still to be finalised.
The Marshalls foreign affairs minister, Gerald Zackios has just returned from Taiwan when he met with government officials and the president Chen Shui-bian.
Both Mr Zackios and Taiwan's Ambassador to the Marshalls, Gary Lin, have refused to discuss the amount of the contribution.
However reports from the Marshalls say that a memorandum of understanding was signed in 1998 establishing diplomatic ties and included a Taiwanese commitment of up to 50-million US dollars towards a trust fund.
