President Lee Teng-hui (
Heinrich von Pierer, chairman of Germany's Siemens AG, is in Taiwan trying to reverse the Taiwan High-Speed Rail Corporation's (THSRC, 台灣高鐵) decision to give the priority negotiating rights to the Japanese Shinkansen group.
Pierer lobbied Lee a day after Eurotrain announced that it has asked a Taipei court for an injunction to suspend the rail talks.
But Lee told Pierer the competitive bidding was a matter between businesses and he could not get involved, the Presidential Office said in a statement.
Eurotrain has been vying for the railway since 1997. The 345-kilometer system would link the cities of Taipei and Kaohsiung.
Despite lengthy negotiations with Eurotrain, the THSRC awarded priority negotiating rights to the Japanese group on Dec. 28.
There had been rumors that THSRC favored Shinkansen over Eurotrain because the Taiwan government wants to forge closer ties with Japan, but THSRC had denied there were political factors.
However, Eurotrain said it has a binding agreement with THSRC and the Taiwanese company violated that agreement by talking to the Japanese.
Eurotrain wants to provide the main hardware for the rail system, estimated to cost NT$430 billion (US$13.5 billion).
THSRC had reacted strongly to Eurotrain's legal action and vowed to continue negotiations with the Shinkansen group.
Edward Lin (
The Shinkansen group is led by Mistui & Company and comprises Mitsubishi, Marubeni, Sumitomo, Mitsubishi Heavy Industries, Toshiba, and Kawasaki Heavy Industries.
Construction of the high-speed rail system is set to start next spring and is scheduled to make its first run Oct. 31, 2005.
In related news, THSRC has hired Bank of America Corp to advise the company in its international negotiations to buy railway equipment.
The biggest US bank will assist the company in negotiations for the purchase of trains and control systems for the rail construction project.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01