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Opposition wants wider yuan trade

In the face of pan-blue pressure to allow the exchange of Chinese yuan nationwide, Mainland Affairs Council Chairman Joseph Wu (吳釗燮) yesterday said it would be too risky to do so without signing a formal agreement between the governments of the two countries.

The government's decision to allow the yuan to be converted to New Taiwan dollars in Kinmen and Matsu aroused great discussion in the legislature's Home and Nations Committee yesterday.

Opposition lawmakers called on the government to expand the program to the entire nation.

Article 38 of the Statute Governing the Relations Between the People of the Taiwan Area and the Mainland Area (兩岸人民關係條例) states that there must be a monetary-clearing agreement with Beijing before the government can permit yuan to be exchanged for NT dollars.

"The government has not allowed free conversion as the Chinese side has been reluctant to negotiate a monetary-clearing agreement with Taiwan," Wu said.

Opposition lawmakers proposed eliminating the government's role in order to allow for such transactions.

People First Party (PFP) Legislator Christina Liu (劉憶如) said the term "monetary-clearing agreement" should be dropped in favor of the term "monetary-clearing mechanism."

Chinese Nationalist Party (KMT) Legislator Lee Jih-chu (李紀珠) proposed that "cross-strait currency transactions should be able to be conducted through private banks without the intervention of the government."

Lee said the Chinese yuan should be treated just like any other foreign currency, which would eliminate the need for the council to be involved in the negotiation of a cross-strait "monetary clearing mechanism."

Wu told the committee that the government does not have a timetable for expanding yuan conversions to Taiwan proper, given the lack of cross-strait negotiations and the need for a monetary clearing agreement.

No matter how legislators amend the statute, it is not feasible to allow direct yuan conversion nationwide without government-to-government negotiation, Wu said.

Meanwhile, the Taiwan Solidarity Union (TSU) legislative caucus spoke out against the plan to allow the yuan to be exchanged on Kinmen and Matsu.

"We strongly oppose the measure because both sides are still in a hostile situation," said TSU caucus whip Mark Ho (何敏豪).

"The policy is bound to cause harm to the nation and create a major crisis," he said.

Ho said that he was baffled by the government's decision to help the pan-blue camp make good on promises made by its leaders during their visits to China earlier this year.

"Apparently what the Democratic Progressive Party [DPP] government says about safeguarding the nation's sovereignty is a hoax," he said. "They are actually inching toward the `one country, two systems' model."

DPP caucus whip William Lai (賴清德) defended the policy shift, saying that the government is duty bound to respond to people's needs.

Wu also told the committee yesterday that the government plans to fingerprint all Chinese nationals entering the country and is preparing to revise the regulations accordingly.
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