Panel clashes on China

Members of the cross-strait panel under the Economic Development Advisory Conference (經發會) yesterday were generally united on the need for lifting curbs on trade and investment in China, but were split on whether to hold bilateral talks with Beijing.

The 39-member group appeared divided on whether it should attempt to organize bilateral talks on cross-strait issues, with government representatives voicing concerns about opposition from China and lawmakers taking offense, branding the warning as a suggestion they might try to sell out Taiwan.

At the panel's second meeting yesterday morning, New Party lawmaker Lai Shih-bao (賴士葆) led the charge by saying that the government had been "all talk and no action" on promises to lift curbs on trade and investment in China.

"Foreign businessmen can see that Taiwan is dragging its feet on opening direct links and are considering locating their Asia-Pacific headquarters elsewhere in places like Hong Kong," Lai said.

"For this reason, I recommend quickly opening direct links ... if this doesn't happen then the high-tech and financial development of Shanghai and Guangdong will put Taiwan's economy in danger of being sidelined," Lai said.

Rock Hsu (許勝雄), chairman of the Taiwan Electrical and Electronics Manufacturers' Association (電電公會) and Compal Electronics Corp (仁寶電腦), urged a return to the 1992 consensus reached between Taiwan and China as a basis for talks in which each side was entitled to its own interpretation of the "one China" policy.

Hsu said that talks are needed so that both sides can yield cross-strait trade and investment guarantees, tax agreements and set a timetable for the opening of direct links.

Chang Hsian-yao (張顯耀), director of the People First Party's Policy Center, said that the "no haste, be patient," policy of investment in China has existed in name only for the last five years. He said in the face of pressure to lift the policy once Taiwan joins the WTO, the policy should be done away with now.

Chang likened Taiwan's hesitation to allow free trade and investment with China to the UK's early reluctance to join the EU, which, like China, boasted a favorable investment environment.

"In the 1960s and 1970s when the European Union was being enlarged, the United Kingdom was hesitant about joining up. But after it foresaw the economic strength of a united Europe, it realized that it couldn't afford to be left out," Chang said.

"Taiwan can't afford to be isolated from China's economy."

The panel was more divided on the suggestion that talks on cross-strait issues be held in China, with Mainland Affairs Council chairwoman Tsai Ing-wen (蔡英文) and Cabinet secretary-general Chiou I-jen (邱義仁) warning of the difficulties of such an undertaking.

While the suggestion of talks in China had been discussed during the panel's last meeting, the New Party's Lai took exception to the inclusion into the meeting's notes that cautioned any such endeavor should be mindful to Taiwan's "sovereignty and national interest."

"By inserting this clause it sounds like the council is afraid we are going to sell-out Taiwan," said Lai, adding that any member that went would honor the Republic of China.

"If any member did sell-out Taiwan, how could they bear the scrutiny they would face upon their return," he said.

It was eventually ruled that the clause be removed.