Deals inked with China signal normalisation of cross-strait ties but some worry about price Taiwan may have to pay
By
Ho Ai Li , Taiwan Correspondent
TAIPEI: The inking of landmark deals between Taiwan and China was largely welcomed by Taiwanese yesterday, even as some questioned what price the island might have to pay.
The four pacts signed on Tuesday signified the normalisation of cross-strait contacts by restoring the 'three links' - postal, transport and trade - cut nearly six decades ago.
Taiwan's top cross-strait envoy Chiang Pin-kung and his Chinese counterpart Chen Yunlin inked the agreements at the closing of the second round of cross-strait talks in Taipei.
Both sides agreed to expand passenger flights to seven days a week, instead of the current four days decided during the first round of talks in June.
Closer economic ties would benefit Taiwan's sluggish economy, especially amid the current financial turmoil, observers and business groups here noted yesterday. The restoration of the 'three links' would help Taiwan attract more foreign investment, said the Economic Affairs Ministry.
But the optimism was not shared by all.
Some ordinary Taiwanese and labour groups feared that they could lose out as businesses shift more jobs to the mainland in a bid to capitalise on closer cross-strait links.
'We are optimistic about the results the three links will bring. But we are worried there was no mention of the protection of labour rights in the discussions,' said Mr Chu Wei-li, head of the 9,000-strong Taiwan National Alliance Federation of Independent Trade Unions.
Some observers also warned that the benefits of closer cross-strait economic integration may fall short of expectations. For instance, Chinese tourist arrivals - agreed on during the last round of talks in Beijing - have failed to meet initial targets.
There were others who felt Taiwan did not get a fair deal. 'The milestone of the three links which the mainland had wanted since 1979 has been accomplished,' said Professor Lin Cheng-yi of the Academia Sinica, Taiwan's top research institute.
'But when it comes to Taiwan's (demand) of participation in global organisations and the dismantling of Chinese missiles aimed at us, these have not been dealt with yet.'
Despite reservations among some Taiwanese, the two sides proceeded yesterday to exchange views on how to work together to battle the global financial tsunami threatening the region.
In attendance were top bankers and finance officials from both sides, such as Taiwan's Financial Supervisory Commission vice-chairman Lee Jih-chu and Bank of China president Li Lihui.
At the closed-door forum, they discussed plans to set up a mechanism for financial supervision and currency clearance, said Ms Lee at a press conference after the meeting.
Taiwan expressed its wish to join a regional currency stabilisation system, such as the one which involves Asean, plus China, South Korea and Japan, she said. Taiwanese banks are also hoping for the green light to set up branches on the mainland, or to invest in banks there. Chinese banks in turn are hoping to set up representative offices in Taiwan.
The two sides are hoping that discussions on some of these issues can bear fruit by the time they meet again in the first half of next year.
There was a good chance that a financial memorandum of understanding can be signed by then, said Taiwanese officials.
Mr Chen continued his five-day visit in Taiwan yesterday, calling on Taiwanese politicians including ruling Kuomintang chairman Wu Poh-hsiung.
Pro-independence supporters who opposed his visit kept up their protest yesterday. Hundreds of them surrounded a hotel where Mr Chen was attending a dinner banquet and tried to block his car from leaving.
