Taipei Times: What ideas do you have about strengthening ties between Taiwan and Russia?
Chen Rong-jye: Over the past four decades, we witnessed a vacuum in ties between Russia and Taiwan. There was not only no government-to-government engagement, but also few exchanges at the private sector level. It's not until Taiwan set up a representative office in Moscow back in 1993 that both sides began formal exchanges.
PHOTO: LU CHUN-WEI, TAIPEI TIMES
Up until now, Russia has wanted to enhance bilateral ties by focusing on trade and investment, with relatively less focus on the side of education, culture and technology. The annual trade volume between the two sides amounted to over US$1 billion before the 1997 financial crisis, with a slight drop after the financial crisis hit the region. In 2000, trade picked up to US$1.56 billion, with Taiwan enjoying a trade deficit of around US$1.2 billion.
Since Russia began its march toward reform and transition, its policy has shifted to enhance economic cooperation with Asia-Pacific countries in order to speed up development in Siberia and the Far East region, which are rich in natural resources. This policy orientation, alongside various advantages Russia has enjoyed, such as its vast domestic market, enormous land and abundant natural resources, has made Russia rather enticing in the eyes of investors. Its comparative advantage in the aerospace, engineering and electronics industry can make Russia a potential partner for Taiwan in related joint research and development programs as some of these Russia-equipped technologies have yet to be commercialized.
Despite related laws and regulations in Russia as a transitional economy, it has yet to meet the standards of advanced nations in the West. I am sure there is vast room for us to expand bilateral ties.
What I want to emphasize is that we are aiming for deepening comprehensive relations between the two sides -- in the areas of culture, technology, tourism, trade and investment.
TT: How about the prospects of forging political ties between Taipei and Russia despite Moscow's `one China' policy?
Chen: Political ties and diplomatic ties are an instrumental part of comprehensive bilateral relations. But considering the short period of engagement between the two sides, we need to work on establishing mutual trust first. Some have argued that amiable political ties are preconditions for boosting economic links. But others have argued that the warming up of political ties is a natural consequence of stout economic relations. It will be highly difficult for us to pursue enhancement of political ties with Russia by skipping the improvement of cultural, educational and economic relations.
Russia remains tilted toward China by embracing Beijing's "one China" principle, opposing Taiwan's bid to become a UN member and refusing to sell us weapons. So China is the most obvious obstacle to bilateral ties between Taiwan and Russia.
It would be premature for us to initiate talks with Russia on the possibility of forging a military alliance or a diplomatic partnership. So we need to adopt a pragmatic approach to expand substantive ties on a mutually beneficiary basis.
It is imperative for me to establish mutual trust between the two sides as I work at the diplomatic frontline in Moscow. It's our hope to establish links, such as air links and sea links, between the two sides. For example, it'll be an extremely onerous task to expand tourism and trade links when air links between the two sides are lacking. In addition, it's my goal to foster a mutually beneficial environment for trade and investment by sealing various pacts with Russia such as the avoidance of double-taxation agreement, setting up related economic dispute settlement mechanisms, and kick-starting regular face-to-face economic consultation meetings.
TT: How about the latest development on the Taipei-Moscow aviation talks after the China Airlines (CAL) team returned from its negotiation with its Russian counterpart late last month? Have the two stumbling blocks to the talk, namely the move for the two sides to grant each other tax-free status and to extend the air route from Moscow and Taipei to other destinations, been overcome?
Chen: It is normally a customary practice in aviation agreements for related parties to grant each other exemption from income tax arising from related flights. But such an arrangement will require the legal backup of related domestic laws in the countries in question. This issue can be handled at a later stage. This is a side issue instead of a core issue in our negotiations with Russia, and CAL has been instructed to handle the negotiation following our decision.
The proper timing for mutual engagement between Taipei and Moscow usually falls in May and lasts until September or November, whereas commercial interest is largely reduced in the winter season. The minimum economic operation size is expected to be a minimum of three flights per week. The commercial interest in the eyes of related airline companies would be best served if they are able to extend the air routes farther from the two respective cities. But this issue can also be handled at a later stage.
TT: Some say the pact will be sealed either by the end of this year or the beginning of next year. Is such a timetable part of your plans?
Chen: Political obstacles have been removed, and we'll respect CAL's opinions on issues related to technical and commercial aspects of the planned direct air links.
Kick-starting direct flights between Taipei and Moscow is part of our agenda and it's our responsibility to work toward that goal.
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