Identifier
Created
Classification
Origin
06TAIPEI1873
2006-06-02 04:49:00
CONFIDENTIAL
American Institute Taiwan, Taipei
how-toVZCZCXRO5444 PP RUEHCHI RUEHCN RUEHFK RUEHGH RUEHHM RUEHKSO RUEHPB DE RUEHIN #1873/01 1530449 ZNY CCCCC ZZH P 020449Z JUN 06 FM AIT TAIPEI TO RUEHC/SECSTATE WASHDC PRIORITY 0460 INFO RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION COLLECTIVE PRIORITY RUEHOO/CHINA POSTS COLLECTIVE PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 001873
SIPDIS
SIPDIS
STATE FOR EAP/RSP/TC, STATE PASS USTR FOR DEPUTY USTR
BHATIA FROM DIRECTOR YOUNG
E.O. 12958: DECL: 05/26/2031
TAGS: ECON TW
SUBJECT: TAIWAN TIFA: SESSION 8: TEXTILES
REF: TAIPEI 1727
Classified By: AIT Deputy Director David J. Keegan, Reason 1.4 b
Summary
-------
C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 001873
SIPDIS
SIPDIS
STATE FOR EAP/RSP/TC, STATE PASS USTR FOR DEPUTY USTR
BHATIA FROM DIRECTOR YOUNG
E.O. 12958: DECL: 05/26/2031
TAGS: ECON TW
SUBJECT: TAIWAN TIFA: SESSION 8: TEXTILES
REF: TAIPEI 1727
Classified By: AIT Deputy Director David J. Keegan, Reason 1.4 b
Summary
--------------
1. (C) During Taiwan TIFA talks session 8, the U.S. and
Taiwan agreed to work together to complete a textile
transshipment MOU. The U.S. and Taiwan also discussed using
the AIT/TECRO mechanism to develop economic development
assistance programs in AGOA countries. The U.S. noted
Taiwan's concerns on insurance supervision and proposed that
AIT serve as liaison between the Taiwan side and the various
entities in the U.S. responsible for regulating the insurance
industry. Finally, the U.S. re-affirmed its support for
Taiwan's participation in international organizations where
statehood is not required and that it would carefully
consider Taiwan's application for OECD committee membership
on a committee-by-committee basis. End summary.
Textile Transshipment
--------------
2. (C) Yuh-liang Ho, Chief Secretariat of the Bureau of
Foreign Trade, led off the substantive discussion of the U.S.
proposal for a MOU addressing illegal textile transshipment
issues. Ho noted that AIT provided Taiwan with a draft MOU
in 2004. According to Ho, Taiwan provided input back to AIT,
but the U.S. side has not provided any response since that
time.
3. (C) AUSTR Stratford stated that there is now renewed
interest in the U.S. in signing a transshipment MOU. Since
the U.S. and the PRC signed a textile agreement in 2005, the
USG has observed an increase in the illegal transshipment of
textiles to the U.S. He emphasized that this illegal
activity has damaged the interests of legitimate companies
and has also been harmful for major trading partners,
including, Taiwan.
4. (C) AUSTR Stratford offered to provide a working draft
textile transshipment MOU to the Taiwan side as a basis for
discussion. He added that the AIT would shortly provide a
formal draft MOU to TECRO. He proposed that AIT and TECRO
discuss this formal MOU within one month after AIT provides
this formal draft. The BOFT's Director General Huang agreed
in principle to further discussions and stated that the
one-month time frame would most likely give the Taiwan side
sufficient time to respond.
Taiwan Wants to Help AGOA Countries
--------------
5. (C) Bill (Shih-chao) Cho, Director General of the MOFA's
Department of Economic and Trade Affairs, briefed AUSTR
Stratford on Taiwan's efforts to increase economic
development in Taiwan's African allies. He noted that six of
the 37 countries participating in the African Growth and
Opportunity Act (AGOA) have diplomatic relations with Taiwan.
Taiwan would like to work with the U.S. to assist economic
development in the textile and apparel sectors in these six
countries. For example, Cho noted that Taiwan investors are
responsible for 90% of Lesotho's FDI as well as employing
more than 40,000 people there. Cho said that Taiwan would
like to expand these activities to its other diplomatic
allies and is currently is working with the government in
Burkina Faso on several bilateral projects. Cho proposed
that Taiwan and the U.S. begin a pilot program in Burkina
Faso focusing on the textile and apparel sectors under the
AGOA framework.
6. (C) AUSTR Stratford responded that the U.S. shares
Taiwan's goal of promoting economic development in
sub-Saharan Africa. He stated that the AIT-TECRO mechanism
is the best way to determine the proper channels to initiate
further cooperation and exchange information.
Beefing up Insurance Supervision
--------------
7. (C) Mr. Andrea Lee, Deputy Director-General of the
Department of International Affairs, Financial Supervisory
Commission, proposed that the U.S. and Taiwan sign a
cross-border insurance supervision MOU. He stated that law
enforcement agencies in Taiwan have noted an increase in the
amount of illegal sales and solicitations from individuals
representing foreign insurance companies, including from the
U.S. He noted that Taiwan is unable to curb these illegal
TAIPEI 00001873 002 OF 002
sales or sanction responsible individuals because they are
not located in Taiwan. Further complicating this issue is
the fact that insurance regulation in the U.S. is handled by
each state.
8. (C) AUSTR Stratford responded that the National
Association of Insurance Commissioners (NAIC) has expressed a
willingness to help coordinate the international relations
activities of state insurance regulatory agencies. He said
AIT is in position to act as a liaison with the NAIC to relay
Taiwan's concerns and otherwise coordinate efforts with the
NAIC to address these issues.
9. (C) Following the discussion about the insurance MOU, Lee
asked if the U.S. side had any additional information about
two other proposed MOUs that TECRO had submitted some time
earlier (reported ref b). AIT/W's Francis Ruzicka
acknowledged that both MOUs were still pending. With respect
to the Commodity Futures MOU, Ruzicka stated that the draft
MOU was currently with the State Department's legal advisors,
who were in the process of making the draft fit the approved
AIT/TECRO mechanism. As for the other MOU on financial
regulatory information exchange, Ruzicka noted that the FDIC
is reluctant to permit confidential information to be passed
though any agency but itself and the foreign agency on the
other side. As a result, the U.S. side is trying to seek a
solution that allays these concerns while still utilizing the
AIT/TECRO format.
Taiwan asks for US Support in OECD
--------------
10. (C) Director General Huang expressed his appreciation
for the USG's support of Taiwan's efforts to obtain observer
status on OECD committees. AUSTR Stratford responded that
the U.S. continues to support Taiwan's participation in
international organizations where statehood is not a
requisite. The U.S. as well as other OECD members will
carefully consider Taiwan's applications for observer status
on a committee-by-committee basis. He added that the OECD is
presently trying to limit observer status on some committees
as a means of making these committees less unwieldy and more
efficient.
11. (U) This cable was cleared by USTR.
YOUNG
SIPDIS
SIPDIS
STATE FOR EAP/RSP/TC, STATE PASS USTR FOR DEPUTY USTR
BHATIA FROM DIRECTOR YOUNG
E.O. 12958: DECL: 05/26/2031
TAGS: ECON TW
SUBJECT: TAIWAN TIFA: SESSION 8: TEXTILES
REF: TAIPEI 1727
Classified By: AIT Deputy Director David J. Keegan, Reason 1.4 b
Summary
--------------
1. (C) During Taiwan TIFA talks session 8, the U.S. and
Taiwan agreed to work together to complete a textile
transshipment MOU. The U.S. and Taiwan also discussed using
the AIT/TECRO mechanism to develop economic development
assistance programs in AGOA countries. The U.S. noted
Taiwan's concerns on insurance supervision and proposed that
AIT serve as liaison between the Taiwan side and the various
entities in the U.S. responsible for regulating the insurance
industry. Finally, the U.S. re-affirmed its support for
Taiwan's participation in international organizations where
statehood is not required and that it would carefully
consider Taiwan's application for OECD committee membership
on a committee-by-committee basis. End summary.
Textile Transshipment
--------------
2. (C) Yuh-liang Ho, Chief Secretariat of the Bureau of
Foreign Trade, led off the substantive discussion of the U.S.
proposal for a MOU addressing illegal textile transshipment
issues. Ho noted that AIT provided Taiwan with a draft MOU
in 2004. According to Ho, Taiwan provided input back to AIT,
but the U.S. side has not provided any response since that
time.
3. (C) AUSTR Stratford stated that there is now renewed
interest in the U.S. in signing a transshipment MOU. Since
the U.S. and the PRC signed a textile agreement in 2005, the
USG has observed an increase in the illegal transshipment of
textiles to the U.S. He emphasized that this illegal
activity has damaged the interests of legitimate companies
and has also been harmful for major trading partners,
including, Taiwan.
4. (C) AUSTR Stratford offered to provide a working draft
textile transshipment MOU to the Taiwan side as a basis for
discussion. He added that the AIT would shortly provide a
formal draft MOU to TECRO. He proposed that AIT and TECRO
discuss this formal MOU within one month after AIT provides
this formal draft. The BOFT's Director General Huang agreed
in principle to further discussions and stated that the
one-month time frame would most likely give the Taiwan side
sufficient time to respond.
Taiwan Wants to Help AGOA Countries
--------------
5. (C) Bill (Shih-chao) Cho, Director General of the MOFA's
Department of Economic and Trade Affairs, briefed AUSTR
Stratford on Taiwan's efforts to increase economic
development in Taiwan's African allies. He noted that six of
the 37 countries participating in the African Growth and
Opportunity Act (AGOA) have diplomatic relations with Taiwan.
Taiwan would like to work with the U.S. to assist economic
development in the textile and apparel sectors in these six
countries. For example, Cho noted that Taiwan investors are
responsible for 90% of Lesotho's FDI as well as employing
more than 40,000 people there. Cho said that Taiwan would
like to expand these activities to its other diplomatic
allies and is currently is working with the government in
Burkina Faso on several bilateral projects. Cho proposed
that Taiwan and the U.S. begin a pilot program in Burkina
Faso focusing on the textile and apparel sectors under the
AGOA framework.
6. (C) AUSTR Stratford responded that the U.S. shares
Taiwan's goal of promoting economic development in
sub-Saharan Africa. He stated that the AIT-TECRO mechanism
is the best way to determine the proper channels to initiate
further cooperation and exchange information.
Beefing up Insurance Supervision
--------------
7. (C) Mr. Andrea Lee, Deputy Director-General of the
Department of International Affairs, Financial Supervisory
Commission, proposed that the U.S. and Taiwan sign a
cross-border insurance supervision MOU. He stated that law
enforcement agencies in Taiwan have noted an increase in the
amount of illegal sales and solicitations from individuals
representing foreign insurance companies, including from the
U.S. He noted that Taiwan is unable to curb these illegal
TAIPEI 00001873 002 OF 002
sales or sanction responsible individuals because they are
not located in Taiwan. Further complicating this issue is
the fact that insurance regulation in the U.S. is handled by
each state.
8. (C) AUSTR Stratford responded that the National
Association of Insurance Commissioners (NAIC) has expressed a
willingness to help coordinate the international relations
activities of state insurance regulatory agencies. He said
AIT is in position to act as a liaison with the NAIC to relay
Taiwan's concerns and otherwise coordinate efforts with the
NAIC to address these issues.
9. (C) Following the discussion about the insurance MOU, Lee
asked if the U.S. side had any additional information about
two other proposed MOUs that TECRO had submitted some time
earlier (reported ref b). AIT/W's Francis Ruzicka
acknowledged that both MOUs were still pending. With respect
to the Commodity Futures MOU, Ruzicka stated that the draft
MOU was currently with the State Department's legal advisors,
who were in the process of making the draft fit the approved
AIT/TECRO mechanism. As for the other MOU on financial
regulatory information exchange, Ruzicka noted that the FDIC
is reluctant to permit confidential information to be passed
though any agency but itself and the foreign agency on the
other side. As a result, the U.S. side is trying to seek a
solution that allays these concerns while still utilizing the
AIT/TECRO format.
Taiwan asks for US Support in OECD
--------------
10. (C) Director General Huang expressed his appreciation
for the USG's support of Taiwan's efforts to obtain observer
status on OECD committees. AUSTR Stratford responded that
the U.S. continues to support Taiwan's participation in
international organizations where statehood is not a
requisite. The U.S. as well as other OECD members will
carefully consider Taiwan's applications for observer status
on a committee-by-committee basis. He added that the OECD is
presently trying to limit observer status on some committees
as a means of making these committees less unwieldy and more
efficient.
11. (U) This cable was cleared by USTR.
YOUNG