The Legislative Yuan would be notified if a memorandum of understanding (MOU) on cooperation in financial supervision were signed by Taiwan and China, a financial official confirmed yesterday.
Speaking at a meeting of the legislature’s Finance Committee, Financial Supervisory Commission Chairman Sean Chen (陳冲) said a cross-strait financial supervision agreement would be considered a treaty under international law and the legislature would therefore have to be notified.
Democratic Progressive Party Legislator Huang Wei-cher (黃偉哲), however, asked whether submitting an MOU to the legislature for reference was sufficient, given the sensitive nature of Taiwan’s ties with China.
Huang said that any MOU on financial cooperation signed with China should be submitted for legislative review, which would require the lawmaking body to vote on the measure, rather than simple notification, which would not require any further legislative action.
Chen said that under international law, the legislature would only have to be notified of such a deal.
The MOU, which is expected to be signed next month, is expected to cover cooperation in supervising cross-strait banking, securities, futures and insurance services, as well as the establishment of a currency settlement mechanism.
Two other agreements are expected to be signed during a third meeting between negotiators from the two countries, sources said.