A Ministry of Transportation and Communications report suggested yesterday that the government should not only promote more links between China and Taiwan but also work toward completely opening links between the two sides.
"Direct links between the two sides will have great influence on the growth of transferring business at Taiwan's international ports because China is a significant hinterland for the ports," the report said.
Apart from effectively boosting the tonnage of cargo transferred at Taiwan's international ports, direct links would create enormous external economies for the entire nation, according to the report.
"The direct links will greatly facilitate the development of cargo transferring centers on the island," the study predicted.
The report also suggested that the government should encourage privatization of Taiwan's international ports to improve efficiency.
"To boost the competitiveness of Taiwan's international ports, the government should focus primarily on the efficiency of the ports," the report said.
"The government should positively prepare for the launch of direct links between the two sides through negotiations. Before the formal launch of the links, the government should plan transition measures to reduce possible inconveniences," the report said.
Some of the transition measures suggsted include expanding the function and scope of offshore shipping centers, as well as loosening the restrictions on imported cargo.
The report also encouraged the government to prepare for the establishment of free-trade harbor zones. In addition, factories in the zones should be allowed to carry out export processing.
"Goods should be allowed to circulate in the zones without charges of tariffs, excise tax and business tax. Custom administration procedures and goods declaration should also be canceled in these zones," the report said.
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