TAIWAN SUPPORTS U.S. POSITION ON FOOD AID IN WTO

UNCLAS TAIPEI 002910

SIPDIS

STATE FOR EAP/RSP/TC AND EB/TPP/ATB, STATE PASS AIT/W,
USAID AND USTR, USTR FOR HAFEMEISTER, USAID FOR SKORIC,
USDA FOR FAS/MANIS AND AUTRY

E.O. 12958: N/A
TAGS: ECON ETRD TW
SUBJECT: TAIWAN SUPPORTS U.S. POSITION ON FOOD AID IN WTO

REF: STATE 119974


1. AIT Econ and Agriculture officers presented reftel
talking points to Taiwan's Ministry of Foreign Affairs,
Department of Economic and Trade Affairs Section Chief, Hsueh
Hsiu-mei and Council of Agriculture International Cooperation
Division/WTO Affairs Director Shiou Dong-chong. Hsueh and
Shiou agreed that Taiwan would support the U.S. position on
food aid in the WTO.


2. Taiwan shared U.S. objections, though perhaps with
somewhat different priorities. Shiou expressed concern over
draft language that would require food aid to go through
organizations such as the United Nations and the Red Cross,
in which Taiwan is not a member. Shiou also agreed with the
U.S. position that replacing food aid with cash grants would
result in less food aid for those countries in need. She
said bluntly that Taiwan has rice to donate but no money.
Ms. Hsueh agreed that the WTO should limit its consideration
of food aid to preventing commercial displacement and offered
that it was important that food aid donors retain flexibility
to respond to the needs of individual crises. Restricting
food aid to cash assistance would limit donor countries
ability to respond in a timely fashion when needed.


3. COA's Shiou asked for U.S. assistance to eliminate draft
language that would require donors to coordinate aid through
international organizations such as the UN or Red Cross. COA
also asked for U.S. support to get additional information on
usual marketing requirements (UMR) and the Food Aid
Convention from the FAO. Shiou remarked that if Taiwan needs
to live by these rules, it should be given full access to
needed information.


4. Hsueh showed AIT a copy of the Mongolian submission,
circulated June 30, and said that it appeared to support the
U.S. position. She said MOFA felt that it could support what
it had seen in the Mongolian paper and asked if the U.S.
would submit its own paper in the July 6 meeting. Although
the COA staff in Geneva will take the lead on this issue,
Hsueh volunteered that she would fax a copy of the reftel
provided U.S. talking points/non-paper to the Chinese Taipei
Permanent Mission in Geneva. Shiou told AIT that COA would
send instructions to the delegation in Geneva to support the
U.S. position. Shiou said she may also attend the food
aid-related meetings to personally support the U.S. position.
KEEGAN