NOVEMBER 15 TAO PRESS BRIEFING: ARRESTS ON

UNCLAS SECTION 01 OF 02 BEIJING 023789

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PGOV PREL PINR ETRD CH TW
SUBJECT: NOVEMBER 15 TAO PRESS BRIEFING: ARRESTS ON
MAINLAND FOR SPYING, RESOLVING POLITICAL TURMOIL DEPENDS
ON TAIWAN PEOPLE, CHEN SHUI-BIAN AGENT IS FREE,
FUJIAN-PENGHU SHIPPING LINK

Summary
--------------


1. Key points made at the November 15 Taiwan Affairs
Office (TAO) press briefing were:

-- Two Taiwan businesspeople have been detained in
Hunan Province for spying.

-- The spokesman deflected questions about China's
view of the indictment of Chen Shui-bian's wife, Wu
Shu-chen, and the questioning of Taipei Mayor Ma Ying-
jeou.

-- Mainland-based Taiwan businessman, Kung chin-yuan,
who was accused by a Taiwan legislator of being Chen
Shui-bian's agent on the Mainland, is "free."

-- The spokesman noted hopes for establishment of a
direct shipping link between Fujian Province and
Penghu County. End summary.

Two Taiwan Businesspeople Detained for Spying
--------------


2. Taiwan Affairs Office (TAO) spokesperson Li Weiyi
confirmed during the November 15 press briefing that
two businesspeople from Taiwan were detained in
China's Hunan Province for spying activities and
stated that their families have been notified. (Note:
The online transcript of the briefing deleted the
reporter's mention of spying as the reason for the
arrest. End note.)

End Of Political Turmoil Depends on Taiwan People
-------------- --------------


3. Asked to comment on the indictment of Chen Shui-
bian's wife Wu Shu-chen on charges of document forgery
and embezzling, Li said Beijing is paying attention to
relevant Taiwan media reports and that the issue must
be resolved by the Taiwan people themselves. Asked
for comment on the questioning of KMT leader and Mayor
of Taipei Ma Ying-jeou, Li reiterated the attention
being paid to relevant Taiwan media reports. China
will continue to encourage and strengthen cross-Strait
exchange and cooperation and promote the development
of peace and stability in Cross-strait relations. At
the same time, China will remain alert, will firmly
oppose and contain "independence" activities, will not
allow any person to separate Taiwan from China and
will protect China's sovereignty and territorial
integrity, the people's interests and the peace and
stability of the Taiwan Strait and Asia-Pacific
regions.

Purported "Agent" Kung Chin-yuan is Free
--------------


4. Kung Chin-yuan, a Mainland-based businessman who
was accused by a Taiwan legislator of being Chen Shui-
bian's "agent" in the Mainland, "is free," Li
confirmed when asked by a Taiwan reporter if Mr. Kung
was under the supervision or control of Mainland
authorities. The TAO has not had any contact with Mr.
Kung, Li stated.

"One Country, Two Systems" Zone in Kinmen
--------------


5. China welcomes exchanging ideas on peaceful
unification and the development of cross-Strait
relations with relevant parties, groups and
individuals, said Li when asked by a Mainland reporter
for comment on a suggestion for an experimental "One
country, Two Systems" zone to be set up in Kinmen.

Taiwan Customs Workers Take Mainland Exams
--------------

6. Taiwan residents are now eligible to take China's
customs clearance specialist exam, as announced by TAO
Director Chen Yunlin on April 15 at the Cross-Strait
Trade Forum. Of the 551 Taiwan residents who
registered for the exam, 421 did so on site in
Shanghai, Nanjing, Guangzhou and Shenzhen, said Li.
The exam was held on November 5, and grading work is
currently underway.

China Values Views of Taiwan Business
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7. Asked for comment on a National Taiwan Business
Federation to be founded at the end of this month, Li
said that China greatly values the views of Taiwan
businesspeople. The TAO will work to strengthen
services for Taiwan businesses and protect their
rights and interests, Li said. Li noted that since
1990, ninety-nine Taiwan investment and enterprise
associations have been established, with a total of
more than 20,000 enterprise members, about one third
of all Taiwan enterprises on the mainland.

"Three Links" Depends on Taiwan Authorities
--------------


8. China hopes that a direct shipping link between
Fujian Province on the mainland and Penghu County in
Taiwan can be soon realized to fulfill the wishes of
the people of Penghu County and all Taiwan
compatriots, said Li when asked to comment on the
"blocking" of the link by the Taiwan authorities.
Successful boat trips in June prove that the
transportation route is technically sound and can be
fully implemented, Li said.

Mainland Tourists Illegally Traveling to Taiwan
-------------- --


9. Some mainland tourists traveling illegally to
Taiwan via third party territories or countries have
been victims of fraud, Li stated. Cross-Strait
professional organizations will continue their
communication on the issue of Mainland tourists in
Taiwan.

Scholarships for Taiwan students on mainland
--------------


10. This year 1,705 scholarships were awarded to
Taiwan students for study on the mainland. The
recipients included 405 doctorate students, 407
graduate students and 893 undergraduates. According
to the "Provisional Method for Taiwan Student
Scholarship Management" regulations, Mainland
scholarships of First, Second and Third Class
distinctions are offered for up to 2,000 students at
the undergraduate, graduate and doctorate degree
levels.
Randt