Thu, Aug 01, 2002 page1

• CAL urged to favor Boeing

  `THE FACTS OF LIFE' The secretary-general to the president said China Airlines should buy Boeing planes because the US is a better friend to Taiwan than France

  • By Lin Chieh-yu / STAFF REPORTER
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  China Airlines should consider purchasing aircraft from US-based Boeing Co because of America's strong support of Taiwan, the secretary-general to the president said yesterday.

  China Airlines, majority owned by a government-run foundation, has been mulling purchasing planes from Airbus as it modernizes its fleet of aging aircraft.

  

  Presidential Office Secretary-General Chen Shih-meng yesterday morning displays his collection of over 1,000 pig-themed decorations during a visit by local journalists.

  PHOTO: CNA

  But Chen Shih-meng (陳師孟) yesterday said political factors would be taken into consideration and the case was strong for China Airlines to buy its planes from Boeing instead.

  "There were indeed people from the US side ... writing letters to the Presidential Office and voicing their concern about this deal," Chen said, referring to the lobbying efforts of US officials seeking to close the sale on Boeing's behalf.

  "The letters made reference to ties with the US and Taiwan, which they described as never being better."

  Chen said there were no threats made in the letters or by US officials. "And there have been no trade-offs between the two governments whatsoever. The US would not be so rude," he said.

  Asked whether US lobbying efforts could be considered as "pressure" on Taiwan, Chen replied: "You may call it pressure, but you could also call it a statement of the facts of life."

  Chen said it wasn't unusual for politics to come into play in the management of China Airlines. The airline is responsible to a government foundation overseen by the Ministry of Transportation and Communications.

  "China Airlines bases its decision on commercial factors and professional considerations," Chen said. "But the ministry must also take into account other factors and make an overall evaluation. China Airlines must obey the government and ministry's decision."

  Chen's remarks yesterday was the first time that a government official has commented on US lobbying efforts.

  Chen official noted the help the US has offered Taiwan, while previous dealings with the French government have been unpleasant.

  For example, he noted the protracted dispute Taipei City had with the French engineering firm MATRA Transport, which threatened to halt work on the MRT in the early 1990s.

  "MATRA threatened to halt work on the capital's mass rapid transit system and then just left us nothing but a total mess," Chen said.

  He also cited the scandal involving the purchase of six French-made Lafayette warships in 1991 and France's refusal to issue President Chen Shui-bian (陳水扁) a transit visa.

  "The French government completely rejected outright even considering the possibility of President Chen stopping in France on his overseas visit," the official said.

  Chen said these factors would have to be considered when awarding the China Airlines contract. "The government's influence on the final decision cannot be rejected simply because China Airlines is a company," he said.

  Chen's comments came after opposition lawmakers accused the government on Monday of caving into US pressure and forcing China Airlines to buy at least 12 Boeing planes, worth an estimated NT$67.8 billion (US$2 billion).

  The lawmakers said China Airlines originally preferred 16 jets from Airbus, which was offering better terms than Boeing.

  Meanwhile, the US State Department defended efforts by US officials to persuade China Airlines to choose a Boeing jet over its European competition, calling it a "principal mission" for the government to help American businesses win overseas orders.

  "In this context, we have assisted representatives of the Boeing company to make their case to senior-level officials of the Taiwan government, as well as to China Airlines," the State Department said.

  The State Department believes that Boeing "provides a superior product with long-term advantages" to China Airlines.

  The comments came after highly visible efforts in recent days by US officials to persuade China Airlines to choose the Boeing 777 over the Airbus A-330.
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