Identifier
Created
Classification
Origin
09AITTAIPEI362
2009-03-27 09:56:00
CONFIDENTIAL
American Institute Taiwan, Taipei
Cable title:
TAIWAN FINALIZING AGENDA FOR NEXT ROUND OF
how-toP 270956Z MAR 09 FM AIT TAIPEI TO SECSTATE WASHDC PRIORITY 1241 INFO CHINA POSTS COLLECTIVE AMEMBASSY WELLINGTON AMCONSUL CHIANG MAI AMCONSUL HO CHI MINH CITY NATIONAL SECURITY COUNCIL WASHINGTON DC DEPT OF TREASURY WASHDC DEPT OF COMMERCE WASHDC CIA WASHDC DIA WASHINGTON DC USPACOM HONOLULU HI
C O N F I D E N T I A L AIT TAIPEI 000362
STATE FOR EAP/TC
STATE PASS USTR FOR STRATFORD AND ALTBACH, TREASURY FOR
OASIA/WINSHIP AND PISA, NSC FOR LOI, COMMERCE FOR
4431/ITA/MAC/AP/OPB/TAIWAN
E.O. 12958: DECL: 03/28/2018
TAGS: ECON EFIN ETRD PGOV PREL TW CH
SUBJECT: TAIWAN FINALIZING AGENDA FOR NEXT ROUND OF
CROSS-STRAIT TALKS
Classified By: AIT Director Stephen M. Young for reasons 1.4 (b) and (d).
C O N F I D E N T I A L AIT TAIPEI 000362
STATE FOR EAP/TC
STATE PASS USTR FOR STRATFORD AND ALTBACH, TREASURY FOR
OASIA/WINSHIP AND PISA, NSC FOR LOI, COMMERCE FOR
4431/ITA/MAC/AP/OPB/TAIWAN
E.O. 12958: DECL: 03/28/2018
TAGS: ECON EFIN ETRD PGOV PREL TW CH
SUBJECT: TAIWAN FINALIZING AGENDA FOR NEXT ROUND OF
CROSS-STRAIT TALKS
Classified By: AIT Director Stephen M. Young for reasons 1.4 (b) and (d).
1. (SBU) Summary. Taiwan hopes to schedule the next round of
talks between the Straits Exchange Foundation and China's
Association for Relations Across the Taiwan Strait for
mid-May, although the actual date has yet to be confirmed
with Beijing. The agenda for the talks will encompass
cross-Strait law enforcement cooperation, regularly scheduled
passenger flights, financial sector opening, and PRC
investment in Taiwan. End Summary.
2. (C) On March 24, Mainland Affairs Council (MAC) Vice
Chairman Fu Don-cheng told us the agenda for the next round
of talks between Taiwan's Straits Exchange Foundation (SEF)
and the PRC's Association for Relations Across the Taiwan
Strait (ARATS) has largely been worked out with officials in
Beijing. Fu said Taiwan will seek to hold the SEF-ARATS
talks in mid-May, in order to allow time for the Legislative
Yuan to review any agreements signed during the talks before
the current legislative session ends in June. Fu added that
the PRC has yet to agree officially on the actual dates for
the SEF-ARATS talks. (Note: We have heard from other sources
that the talks could take place any time between late April
and early June. End Note.) In addition, the location the PRC
authorities have yet to decide where the talks will be held,
although Fu opined it would not likely be in Beijing.
3. (C) According to Fu, the agenda for the talks will include
cross-Strait law enforcement cooperation, establishing
regularly-scheduled passenger flights, reciprocal opening of
banking and financial services markets, and PRC investment in
Taiwan. Fu said Taiwan authorities anticipate signing
framework agreements on financial oversight, extradition of
criminals, and cross-Strait flights. He added Taiwan expects
that memoranda of understanding covering the details of
opening markets in banking, securities and insurance would be
subsequently negotiated and signed by technical experts from
both sides.
4. (C) Regarding cross-Strait passenger flights, Fu said
Taiwan is still waiting for Beijing's response to the Ma
administration's proposal to transform the present regime of
daily charter flights to a system of regularly-scheduled
passenger and cargo flights. The talks will also encompass
the number of flights each side will operate. Fu said the
PRC has indicated clearly it is not willing to discuss
granting Fifth Freedom rights to allow Taiwan airlines to
operate onward flights from Mainland airports.
5. (C) According to Fu, Taiwan officials do not anticipate
signing an agreement on allowing Mainland investment in
Taiwan, but will likely issue a joint statement endorsing
investment liberalization. Fu said PRC investors are
primarily interested in Taiwan's banking sector, but because
of the relatively small size of the island's banks in
relation to the Mainland's, the Ma administration plans to
move slowly on allowing PRC investors access. Fu said other
sectors of interest to PRC investors are high technology
manufacturing, tourism, real estate, public transportation
and logistics, and the "Ai Taiwan" infrastructure projects.
According to Fu, Taiwan's construction industry opposes
allowing Mainland investment in construction at the island's
harbors or airports, although the administration is open to
possible build-operate-transfer (BOT) arrangements as with
Taiwan's toll highways and high speed railway. Fu said
Taiwan's industry associations oppose Mainland investment in
industrial manufacturing.
6. (C) Regarding joint cooperation on crime fighting, Fu said
in addition to extradition of suspects, Taiwan will seek to
establish a mechanism to verify the authenticity of legal
documents, as well as information sharing between law
enforcement agencies.
Comment
--------------
7. (C) Taiwan appears confident that the PRC will agree to
the agenda outlined by MAC's Fu, although it seems likely
that some of the agreements signed during the next round of
SEF-ARATS talks will be general frameworks to guide
subsequent negotiation of the details of implementation. End
Comment.
YOUNG
STATE FOR EAP/TC
STATE PASS USTR FOR STRATFORD AND ALTBACH, TREASURY FOR
OASIA/WINSHIP AND PISA, NSC FOR LOI, COMMERCE FOR
4431/ITA/MAC/AP/OPB/TAIWAN
E.O. 12958: DECL: 03/28/2018
TAGS: ECON EFIN ETRD PGOV PREL TW CH
SUBJECT: TAIWAN FINALIZING AGENDA FOR NEXT ROUND OF
CROSS-STRAIT TALKS
Classified By: AIT Director Stephen M. Young for reasons 1.4 (b) and (d).
1. (SBU) Summary. Taiwan hopes to schedule the next round of
talks between the Straits Exchange Foundation and China's
Association for Relations Across the Taiwan Strait for
mid-May, although the actual date has yet to be confirmed
with Beijing. The agenda for the talks will encompass
cross-Strait law enforcement cooperation, regularly scheduled
passenger flights, financial sector opening, and PRC
investment in Taiwan. End Summary.
2. (C) On March 24, Mainland Affairs Council (MAC) Vice
Chairman Fu Don-cheng told us the agenda for the next round
of talks between Taiwan's Straits Exchange Foundation (SEF)
and the PRC's Association for Relations Across the Taiwan
Strait (ARATS) has largely been worked out with officials in
Beijing. Fu said Taiwan will seek to hold the SEF-ARATS
talks in mid-May, in order to allow time for the Legislative
Yuan to review any agreements signed during the talks before
the current legislative session ends in June. Fu added that
the PRC has yet to agree officially on the actual dates for
the SEF-ARATS talks. (Note: We have heard from other sources
that the talks could take place any time between late April
and early June. End Note.) In addition, the location the PRC
authorities have yet to decide where the talks will be held,
although Fu opined it would not likely be in Beijing.
3. (C) According to Fu, the agenda for the talks will include
cross-Strait law enforcement cooperation, establishing
regularly-scheduled passenger flights, reciprocal opening of
banking and financial services markets, and PRC investment in
Taiwan. Fu said Taiwan authorities anticipate signing
framework agreements on financial oversight, extradition of
criminals, and cross-Strait flights. He added Taiwan expects
that memoranda of understanding covering the details of
opening markets in banking, securities and insurance would be
subsequently negotiated and signed by technical experts from
both sides.
4. (C) Regarding cross-Strait passenger flights, Fu said
Taiwan is still waiting for Beijing's response to the Ma
administration's proposal to transform the present regime of
daily charter flights to a system of regularly-scheduled
passenger and cargo flights. The talks will also encompass
the number of flights each side will operate. Fu said the
PRC has indicated clearly it is not willing to discuss
granting Fifth Freedom rights to allow Taiwan airlines to
operate onward flights from Mainland airports.
5. (C) According to Fu, Taiwan officials do not anticipate
signing an agreement on allowing Mainland investment in
Taiwan, but will likely issue a joint statement endorsing
investment liberalization. Fu said PRC investors are
primarily interested in Taiwan's banking sector, but because
of the relatively small size of the island's banks in
relation to the Mainland's, the Ma administration plans to
move slowly on allowing PRC investors access. Fu said other
sectors of interest to PRC investors are high technology
manufacturing, tourism, real estate, public transportation
and logistics, and the "Ai Taiwan" infrastructure projects.
According to Fu, Taiwan's construction industry opposes
allowing Mainland investment in construction at the island's
harbors or airports, although the administration is open to
possible build-operate-transfer (BOT) arrangements as with
Taiwan's toll highways and high speed railway. Fu said
Taiwan's industry associations oppose Mainland investment in
industrial manufacturing.
6. (C) Regarding joint cooperation on crime fighting, Fu said
in addition to extradition of suspects, Taiwan will seek to
establish a mechanism to verify the authenticity of legal
documents, as well as information sharing between law
enforcement agencies.
Comment
--------------
7. (C) Taiwan appears confident that the PRC will agree to
the agenda outlined by MAC's Fu, although it seems likely
that some of the agreements signed during the next round of
SEF-ARATS talks will be general frameworks to guide
subsequent negotiation of the details of implementation. End
Comment.
YOUNG