NOVEMBER 29 TAO PRESS BRIEFING: 1992 CONSENSUS,

UNCLAS SECTION 01 OF 02 BEIJING 024165

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PREL ETRD ECON CH TW
SUBJECT: NOVEMBER 29 TAO PRESS BRIEFING: 1992 CONSENSUS,
CROSS-STRAIT TRADE AND INVESTMENT, FLIGHTS, TOURISM, VISAS
FOR "228 INCIDENT" FILM ACTORS


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


1. Key points at the November 29 Taiwan Affairs
Office (TAO) press briefing were:

--The spokesman declined to comment on Taiwan's
internal politics and Ma Ying-jeou's 2008 candidacy,
noting that the "1992 consensus" should serve as the
basis for cross-Strait negotiations.

-- Cross-Strait trade will continue to grow over time,
despite obstructions from Taiwan authrities (in
response to a reporter's citation of a 20 percent
increase in the first ten moths of 2006).

-- The Mainland hopes to strengthen cross-Strait
financial exchange and cooperation and to normalize
cross-Strait charter flights for Spring Festival and
other holidays and weekends.

-- Some progress has been made in discussions on
expanding tourism for Mainland residents to Taiwan,
but further discussions are necessary.

-- Rejection of applications for Mainland actors to
travel to Taiwan for production of a film about the
"228 Incident" is inappropriate.

Taiwan Internal Developments: No Comment
--------------


2. Taiwan Affairs Office (TAO) spokesman Li Weiyi
deflected reporters' questions about Taiwan internal
politics during the November 29 press briefing. Asked
for an opinion on the "special funds" investigations
in Taiwan, Li said the TAO is paying attention to
relevant reports, but has no comment. In response to
a reporter's question about the possibility of a Ma
Ying-jeou victory in the 2008 "presidential" race and
Ma's concept of a "fifty-year peace agreement," Li
said that the Mainland is prepared to discuss and
promote the resolution of questions of mutual concern
following the resumption of talks based on the "1992
consensus."


3. Asked whether the importance of the Taiwan
question has subsided in the wake of China's economic
rise, Li stated that the Taiwan question is a core
interest of the Chinese nation and bears directly on
China's national security. The Mainland will continue
to promote stable cross-Strait relations, to oppose
and contain "Taiwan independence" moves and to promote
peaceful reunification on the basis of the One China
policy.

Taiwan Trade and Investment
--------------


4. Asked about the increase in cross-Strait trade in
2006 (up 20.4 percent in the first ten months of 2006
to more than USD 88 billion, according to the
reporter),Li said that cross-Strait trade would
continue to grow, despite obstacles and restrictions
imposed by the Taiwan authorities. Asked about cross-
Strait financial cooperation and Mainland opening to
Taiwan banks, Li said the Mainland is enthusiastic
about increased cooperation and is willing to promote
negotiations between non-governmental, cross-Strait
financial organizations on issues such as supervision
mechanisms and transaction methods.


5. Li dismissed assertions by the Mainland Affairs
Council in Taiwan that rejection of bids by Taiwan
insurers to operate on the Mainland were rejected for
political reasons. Contrary to the information cited
by the CCTV reporter, Li said only three Taiwan
insurance companies submitted applications and said
two were rejected for not complying with conditions
set by Mainland insurance regulators.

Tourism, Charter Flights Discussions Continue
--------------


6. Asked about cross-Strait charter flights, Li said
the TAO hopes to normalize cross-Strait charter
flights for the Spring Festival and other holidays and
weekends. The Mainland will continue to push for
realization of convenient, direct cross-Strait flights
for both Mainland and Taiwan compatriots.


BEIJING 00024165 002 OF 002



7. Although some technical aspects of the cross-
Strait tourism issue have been resolved through
discussions, further discussions are required to
resolve outstanding issues. Discussions between non-
governmental tourist industry organizations are
continuing, Li said.

Rejection of Film Actors' Visas
--------------


8. Recent rejections of Mainland actors and
actresses' applications to visit Taiwan not only are
inappropriate, but also harm cross-Strait cultural
exchange and cooperation, said Li. The actors and
actresses were reportedly involved in the production
of Yun Shui Yao, a movie about the "228 Incident" of
1947, in which an anti-Kuomintang uprising on Taiwan
was brutally suppressed.
Randt