Identifier
Created
Classification
Origin
07TAIPEI308
2007-02-08 05:51:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
American Institute Taiwan, Taipei
Cable title:  

Two State-Owned Enterprises to Drop "China" from Name

Tags:  ECON ENRG EWWT PREL CH TW 
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VZCZCXRO1409
RR RUEHCN RUEHGH RUEHVC
DE RUEHIN #0308 0390551
ZNR UUUUU ZZH
R 080551Z FEB 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 4042
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHOO/CHINA POSTS COLLECTIVE
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC
UNCLAS TAIPEI 000308 

SIPDIS

SENSITIVE
SIPDIS

STATE PASS USTR
STATE FOR EAP/ TC, EAP/EP
COMMERCE FOR 3132/USFCS/OIO/EAP/WZARIT
TREASURY FOR OASIA/LMOGHTADER
USTR FOR STRATFORD, ALTBACH

E.O. 12958: N/A
TAGS: ECON ENRG EWWT PREL CH TW
SUBJECT: Two State-Owned Enterprises to Drop "China" from Name


UNCLAS TAIPEI 000308

SIPDIS

SENSITIVE
SIPDIS

STATE PASS USTR
STATE FOR EAP/ TC, EAP/EP
COMMERCE FOR 3132/USFCS/OIO/EAP/WZARIT
TREASURY FOR OASIA/LMOGHTADER
USTR FOR STRATFORD, ALTBACH

E.O. 12958: N/A
TAGS: ECON ENRG EWWT PREL CH TW
SUBJECT: Two State-Owned Enterprises to Drop "China" from Name



1. (U) Summary: Chinese Petroleum Corporation (CPC) and China
Shipbuilding Corporation (CSBC) announced on February 1 that they
would change their names to "CPC, Taiwan" and CSBC, Taiwan." CPC
and CSBC have estimated the cost of the change at US$2 million and
US$600,000, respectively. They are the first state-owned
enterprises to change their names under the Chen administration's
"name rectification" campaign. Opposition politicians have
criticized the changes as a waste of money with purely political
motives. End summary.


2. (U) Chinese Petroleum Corporation (CPC) and China Shipbuilding
Corporation (CSBC),both majority owned by the Taiwan authorities
(i.e., state-owned),announced on February 1, 2007 that they would
change their names to replace references to "China" with "Taiwan."
They are the first state-owned enterprises (SOEs) to announce such a
change. Their new English names will be "CPC, Taiwan" and "CSBC,
Taiwan." CPC's and CSBC's Chinese names (in standard pinyin) will
change from "Zhongguo Shiyou" to "Taiwan Zhongyou" and "Zhongguo
Zaochuan" to "Taiwan Guoji Zaochuan," respectively. The name
changes still require approval by the two company's respective
boards of directors, but few expect the boards to reject the
proposed changes.


3. (U) To preserve brand identity and minimize costs associated with
the name change, CPC and CSBC have both indicated that company
trademarks and logos in English will not change. Domestically,
signs and Chinese-language documentation will be changed gradually.
Because CPC will preserve the Chinese short-hand designation of
"Zhongyou" in its name, it may be able to further limit costs. CPC
and CSBC estimate expenses for the name changes to total NT$70
million (US$2 million) and NT$20 million (US$600,000),respectively.



4. (U) The Chen administration first publicly called on Taiwan
state-owned enterprises (SOEs) to "rectify" their names in December

2004. At the time, there was no mandatory order, but SOEs were
asked to change their names within a two-year period (2005-2006).
President Chen also called for the names of Taiwan's representative
offices overseas to be changed. Taiwan's semi-official trade
promotion agency changed its name in January 2004 from "China
External Trade Development Council (CETRA)" to "Taiwan External
Trade Development Council (TAITRA)." More recently, Taiwan
authorities changed the name of Chiang Kai-Shek (CKS) International
Airport to Taiwan Taoyuan International Airport in September 2006.



5. (SBU) The Chen administration has argued that changing the names
of SOEs will eliminate confusion with PRC entities as well as
promote the "Taiwan" name internationally. Opposition pan-Blue
legislators have criticized the decisions as a waste of money for
purely political motives. A CPC executive once characterized the
name change campaign to AIT as driven by ideology, dismissing any
economic justification for the change.


6. (U) CPC and CSBC are among six state-owned enterprises targeted
by the Taiwan authorities for name changes. The other four firms
are the Export-Import Bank of the Republic of China, Chunghwa Post
Co., Chunghwa Telecom Co. (CHT),and Central Trust of China (a
state-owned bank). China Airlines has also been identified as a
possible candidate. The airline is reportedly considering changing
its name to "Taiwan Airlines" or "Formosa Airlines" but has
expressed concern that renaming itself "Taiwan Airlines" could
affect its landing rights in Hong Kong, one of its most profitable
routes.

YOUNG