■Economics
S Korea's economy shrinks
South Korea's economy shrank for the first time in two years and the central bank said the spread of SARS in Asia may cause a second quarter of contra-ction. GDP fell a seasonally adjusted 0.4 percent in the first quarter from the previous three months, as consumer spending slumped, curbing sales for companies such as Kia Motors Corp, the Bank of Korea said. That compares with the fourth quarter's 2 percent growth. The reversal in an economy that grew 6.3 percent last year highlights the impact of SARS, even on countries that contained the disease. While South Korea has reported only three SARS cases, Hong Kong and China, the worst-affected countries, buy about a fifth of the cars, computers and cell phones that South Korea exports.
■ Free trade
New Zealand loses out
US Trade Representative Robert Zoellick on Wednesday dashed New Zealand's hope for a free trade agreement with the US because it would raise too many objections from US farmers. New Zealand had been hoping to begin talks on a free trade agreement with the US, its second-largest trading partner, following negotiations underway on a US accord with Australia. "A lot of [New Zealand's] agricultural exports are ones that are very sensitive here," Zoellick told the US House of Representatives Agriculture Committee, referring specifically to lamb and dairy products. The opposition of farm groups would make it very difficult to win congressional approval, he said. Without offering specifics, Zoellick also said the US was disappointed with recent actions by New Zealand, which opposed the US-led invasion of Iraq.
■ Counterfeiting
Security firm gives warning
Desktop inkjet printers are now so good and so cheap that they are a fast-growing lure to money counter-feiters, the world's leader in security printing, De La Rue, has told banks and govern-ments. "There appears to be little appreciation of the nature of the problem -- and even less sense of urgency," De La Rue's warning document says, according to next Saturday's issue of New Scientist. "The world's central banks are now having to deal with an increasing number of counterfeit banknotes, generated by color inkjet printers." Big, commercial color copiers, which have been around for a quarter of a century, are not the problem, the British weekly says. This is because since the mid-1980s, their makers have voluntarily built in software that detects the fine details of banknote security marks and stops them from being copied.
■ Electronics
Toshiba, Samsung ally
Japan's Toshiba has tied up with rival Samsung Electronics in the washing machine business while Mitsubishi Electric is quadrupling purchases from the South Korean firm, officials said yesterday. "As we expand our product line-up, it is impossible to manufacture all of them by ourselves," a Toshiba Corp spokesman said. Samsung Electronics Co is supplying the Japanese technology giant with small washing machines under the Toshiba brand, marking the firm's first procurement from South Korea in the "white goods" home appliance division. Toshiba aims to sell 10,000 of the washing machines in Japan in the first year. Mitsubishi Electric Corp said it would increase the range of washing machines it buys from Samsung, boosting pro-curement to 120,000 units in the year to March of next year.
Agencies
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft