Mon, Aug 27, 2001 page1

• Forum proposes easing of China policy

  NO SURPRISES On the third and final day of the economic conference, the cross-strait panel urged the replacement of the `no haste' policy with a more investor-friendly one

  • By Richard Dobson / STAFF REPORTER
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  As expected, the cross-strait panel of the Economic Development Advisory Conference urged the government yesterday to relax restrictions on investment in China.

  The proposal was just one of 322 that the 120-member conference approved by a full consensus.

  President Chen Shui-bian (陳水扁) praised the cooperation among the multi-party group and voiced greater hope for the success of his planned coalition government after the December elections.

  

  President Chen Shui-bian, far right, greets Premier Chang Chun-hsiung, second right, Straits Exchange Foundation Chairman Koo Chen-fu, second left, and Presidential Office Secretary-General Yu Shyi-kun at the closing ceremony of the three-day Economic Development Advisory Council at the Taipei World Trade Center yesterday.

  PHOTO: CHEN CHEN-CHANG, TAIPEI TIMES

  The cross-strait panel, which was the last of five subgroups to hold its closing meeting, unanimously proposed that the "no haste, be patient" cross-strait investment policy be replaced with "active opening, effective management."

  The measure would include scrapping the US$50 million cap on any single investment in China.

  "This is a key step and a comprehensive policy direction for cross-strait trade," said Tsai Ing-wen (蔡英文), one of the members of the subcommittee on cross-strait relations and chairwoman of the Mainland Affairs Council.

  Observers applauded the recommendation, saying easing investment restrictions is vital if Taiwan companies are to retain their competitiveness.

  "If Taiwan doesn't do it and everyone else does, most of the companies here -- especially the high-tech companies -- will probably risk losing their competitiveness," said Irmak Surenkok, an economist at Primasia Securities Co.

  Morris Chang (張忠謀), chairman of Taiwan Semiconductor Manufacturing Co (台積電) and a member of the conference, agreed, saying not going to China would risk TSMC losing its competitive edge to companies that do go.

  "Morris Chang -- who had always said TSMC would not invest in China -- has sent a very clear signal: the China factor cannot be ignored," said Chou Tien-Chen (周添城), a professor of economics at National Taipei University.

  Tsai also said that Taiwan would open direct trade links with China in line with requirements to enter the WTO, which both sides are expected to join later this year.

  Direct communications and postal services should also be opened in line with WTO entry, according to the panel. But direct transportation links will have to wait until both sides had discuss the issue and sign an agreement on the opening of the links, the panel said.

  "In the interim, the scope of the off-shore transshipment center will be broadened to facilitate greater cross-strait trade ties," Tsai said.

  Talks between China and Taiwan remain deadlocked as Beijing continues to insist on Taiwan recognizing the "one China" principle before both sides can sit down to talks -- a condition the president refuses to accept.

  In expediting talks, the panel recommended the government first resolve the dispute among all political parties over the so-called "1992 consensus" that allows "each side its own interpretation" of "one China."

  Koo Chen-fu (辜振甫), Taiwan's chief negotiator with China in his position as chairman of the Straits Exchange Foundation, was adamant that dialogue must be reopened and was hopeful that it was possible.

  "We must begin talks on this matter, we must establish a consensus and resolve the areas in which we have differences," Koo said.

  Of the 36 recommendations by the cross-strait panel, all were agreed upon by a consensus, meaning the Cabinet promptly will have to devise policy proposals and bills to match.

  During the three-day conference, the five panels reached consensus on 322 proposals, making what the president has described as a commendable effort.

  Indeed Chen, who attended all three days of the conference, was so impressed by the level of consensus reached that he said he now has much greater confidence that a coalition government could be successful.

  Chen has formerly suggested he would form a coalition government after the year-end elections to break the deadlock in the opposition-controlled legislature.

  "Regardless of the outcome of the elections, I am still resolved to form a coalition government and will not alter the conclusions or consensus reached by the conference," Chen said.

  He said that if Taiwan's political parties fail to fully support the conclusions reached by the conference, he would hold multi-party meetings or a multi-party summit to reach a consensus on the proposals.

  Each of the major parties said they were eager to participate in such a meeting.

  The proposals by the cross-strait panel bring to a close weeks of deliberations among the five panels over measures hoped to boost Taiwan's lagging economy.

  Significant recommendations turned in by other panels included proposing no decrease in the minimum wage while bringing the wages of foreign laborers up to local standards and requiring the Cabinet to form a body to balance the budget within 10 years.

  The proposals will now be sent to the Cabinet for review and then to the Legislative Yuan for the formulation of new laws or the revision of old ones.

  Chen has said the Cabinet must implement proposals that have been agreed upon by the conference with a clear consensus.Also See stories:
  

  MAC calls for trade with China
  

  Chen decides to shelve proposal to cut taxes
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