Fri, Jun 12, 2009 - Page 12 News List

MOU will not be delayed: Sean Chen


No timetable should be set for the signing of a memorandum of understanding (MOU) on cross-strait financial supervision with China, the Central News Agency quoted Financial Supervisory Commission (FSC) Chairman Sean Chen (陳冲) as saying yesterday.

The signing of an MOU could still be possible later this month or next month, which is still not too late, Chen was quoted as saying, rebutting reports that the MOU could be delayed.

But Chen said it would be unwise to pre-set a timetable for the signing of an MOU while negotiation are in progress.

Chen made the remarks during a question-and-answer session at a joint legislative meeting yesterday, where the Mainland Affairs Council, the Ministry of Economic Affairs and the FSC were asked to comment on the government’s plan to open Taiwan to Chinese investment soon and the possible impact of such a move.

Chen’s remarks came after the Chinese-language Economic Daily News reported yesterday that the council, which had initially planned to sign an MOU before the end of this month, would have to postpone it until at least next month.

As a result, state-run banks would have to postpone their plans to enter the Chinese market and Chinese qualified domestic institutional investors (QDII) would not be allowed to invest in Taiwan’s stock market anytime soon, the report said.

The report said legislators from the Finance Committee would leave for China on July 1 to visit the financial supervisory authority there and invited Taiwanese financial officials to join them.

The Finance Committee said the administrative department was very likely to sign a cross-strait MOU next month and would therefore visit China’s financial supervisory authority before the MOU is signed, the report said, citing an unidentified legislator.

Meanwhile, on the opening of Taiwan to Chinese investment and the signing of an economic cooperation framework agreement (ECFA), council Vice Chairman Fu Don-cheng (傅棟成) said yesterday that judging from the ministry’s current progress, both sides of the Taiwan Strait were likely to begin ECFA negotiations by the end of this year.

Lin Hui-yang (林惠陽), director of domestic intelligence at the National Security Bureau, said that as the high-speed rail was a monopoly in Taiwan, the bureau would not allow Chinese to invest in Taiwan High Speed Rail Corp (THSRC, 台灣高鐵).

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