■ Defense
Panel to study China threat
Premier Yu Shyi-kun has ordered the formation of a supraministerial planning and command panel to fight against possible military and other forms of attack by China, Cabinet sources said yesterday. The sources said Yu issued the instruction during a Friday meeting of officials from various ministries to discuss Taiwan's combat preparedness in the face of the global war on terrorism and the mounting military threat from China. Quoting President Chen Shui-bian's (陳水扁) remarks made at the Sanchih conference on national security last year, Yu said that China has developed terrorism-like unlimited warfare strategies. "Such developments could affect our national security and our people's well-being," Yu was quoted as saying at the meeting. Yu appointed Vice Premier Lin Hsin-yi (林信義) to head the panel that will plan and command operations against any possible terrorism-like attacks -- either military or non-military.
■ Economics
Currency trading studied
Taiwan is studying the possibility of trading Chinese yuan to make commerce easier between the political rivals, a local paper reported, citing Taiwan central bank officials. No timetable has been set for the plan because the central bank and the People's Bank of China would need to sign agreements for currency exchange, the report said, citing George Chou (周阿定), director general of the central bank's foreign-exchange department. Because the Chinese government only allows the yuan to be used in domestic transactions, Taiwan's central bank would need an agreement with China's central bank, the report said. Banks in Hong Kong and black- market dealers are the main intermediaries for exchanging yuan and New Taiwan dollars.
■ Diplomacy
Grenadian PM thanks Taiwan
Grenada Prime Minister Keith Mitchell expressed gratitude to Taiwan on Friday for its long-term assistance to his country. Mitchell made the remarks during a ceremony attended by government officials and foreign diplomats to mark the 29th anniversary of Grenada's independence. Mitchell's thanks, pronounced in a stadium built with money donated by Taiwan, received enthusiastic applause from the more than 3,000 people attending, including Taiwan's ambassador, Allan Jiang (姜禮尚). At a cocktail party following the ceremony, Mitchell promised Jiang that Taiwan-Grenada relations will remain firm.
■ Investment
TSMC presents China plans
Taiwan Semiconductor Manufacturing Co (TSMC,台積電), the world's largest supplier of made-to-order chips, has given the government information supporting its plan to invest in the country's first semiconductor plant in China, a local paper said, citing unidentified officials. The Ministry of Economic Affairs plans this month to examine the information, which if approved, would allow the company to start building a factory near Shanghai, the report said. Ministry officials would need to meet later to let the company move production equipment into the factory, the report said. The company plans to borrow US$418 million from banks in China to help finance the US$898 million factory in the Shanghai suburb of Songjiang. The ministry wants to know how TSMC will raise and use funds in China.
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