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MAC News Briefing Jun 18, 2009

Subjects:
  • The Legislative Yuan did not pass the proposed amendments to Article 25-2 under the Act Governing Relations Between People of the Taiwan Area and the Mainland Area; the MAC will continue to communicate with the legislature
  • Effective dates for agreements signed during the third Chiang-Chen Talks await confirmation with relevant agencies regarding progress of accompanying legal measures
  • Issues for fourth Chiang-Chen Talks need to be confirmed through SEF-ARATS negotiations
  • Visa-on-arrival for Mainland tourists to Penghu awaits follow-up discussions
  • In response to WHO’s adjustments to overall epidemic prevention, CDC temporarily ceases to make a distinction between epidemic alert levels

MAC Regular Press Briefing

  Briefer : Johnnason Liu, Deputy Minister
Date : June 18, 2009
Location : Taipei

QUESTIONS & ANSWERS

The Legislative Yuan did not pass the proposed amendments to Article 25-2 under the Act Governing Relations Between People of the Taiwan Area and the Mainland Area; the MAC will continue to communicate with the legislature

QUESTION: The DDP believes that Article 25-2 of the Act Governing Relations Between People of the Taiwan Area and the Mainland Area regards the government of mainland China legislatively as a foreign government and that the MAC Minister must take responsibility for having yet to enable legislation to be completed. What is the MAC’s view on this?

DEPUTY MINISTER LIU:

■ The DDP’s misgivings about revising Article 25-2 are related to the issue of giving “carte blanche authority” and they raise questions by quoting Judicial Yuan Interpretation No. 620. According to this Interpretation, tax obligations of citizens must be established by law. This Interpretation repeatedly emphasizes that with regard to the essential structural factors of tax subjects, tax obligations, and tax rates, these must be regulated by law or administrative orders authorized by law. Thus according to the revision put forward by the MAC and the MOF for Article 25-2 of the Act Governing Relations Between People of the Taiwan Area and the Mainland Area, Paragraph 1 of Article 25-2 clearly stipulates that if in the future a mutual tax exemption is proposed by both sides across the Strait, it must be based on this law. Secondly, in the future during the implementation of this mutual tax exemption, the MOF can be authorized, on the basis of this revision, to formulate relevant secondary laws in accordance with relevant stipulations to establish regulations. Thus this revision is in full conformity with Interpretation No. 620 and uses a written proclamation or clearly worded regulations to formulate laws or legally authorized administrative orders to regulate the issue.

■ According to Article 5 of the Taxation Act, when our government engages in mutual tax exemption with a foreign country, the MOF and other relevant ministries are authorized to negotiate. After the MOF reports on the results of negotiations to the Executive Yuan and this is approved, the matter is handled through an exchange of diplomatic notes. In their explanations on this situation, the MAC and the MOF use the example of how the tax issue is handled between Taiwan and foreign governments. In giving the example and explaining the legislative basis for the amendments to Article 25-2 under the Act Governing Relations Between People of the Taiwan Area and the Mainland Area, this all conforms to standards used by the Legislative Yuan and the Executive Yuan in handling similar cases. None of this involves the question of a so-called foreign government or Mainland government.

■ The MAC hopes that all cross-strait negotiations can be conducted on a legal basis. With regard to the amendments to Article 25-2 of the Act Governing Relations Between People of the Taiwan Area and the Mainland Area, during the amendment process the MAC has constantly engaged in communication with the executive agencies and the legislature and made explanations regarding related matters. The MAC expects that the ruling and opposition parties can address this draft amendment squarely and rationally, and we hope the proposed amendments to Article 25-2 will be quickly passed without a hitch and that the legislative process will be completed. We believe the completion of this amendment to Article 25-2 will have a positive effect on the executive agencies and the legislature as well as on Taiwan society and the Taiwan economy.

Effective dates for agreements signed during the third Chiang-Chen Talks await confirmation with relevant agencies regarding progress of accompanying legal measures

QUESTION: The sixty-day deadline for the three agreements signed during the third Chiang-Chen Talks will occur next week; however, the Legislative Yuan will go into its summer recess. When can we announce that the three agreements have gone into effect?

DEPUTY MINISTER LIU: We will positively seek confirmation with relevant agencies regarding the progress on this. The signed agreements already made reference to “each side completing relevant preparation procedures.” As such, all that is necessary is for the various agencies to complete the relevant accompanying legal measures, and then, the effective date will be clear. At that time we will let you know.

Issues for fourth Chiang-Chen Talks need to be confirmed through SEF-ARATS negotiations

QUESTION: It is reported that the fourth Chiang-Chen Talks may be held earlier, in July or August. Can you tell us whether the ECFA issue will be included in negotiations during this fourth round of talks?

DEPUTY MINISTER LIU:

■ The third Chiang-Chen Talks included some brief explanations about the issues to be dealt with by the fourth round of talks but the relevant arrangements still await negotiation and confirmation by the SEF and the ARATS. The report regarding the timing is not accurate.

■ With regard to the ECFA issue, each side must first evaluate, study and make preparations. After both sides have done these, they will naturally engage in some preliminary communication on technical matters to achieve certain consensus.

■ The Mainland side has mentioned the second half of the year, the purpose of which was to express the hope for more opportunities to discuss this issue during that period. This is in line with the direction of discussions held during the third Chiang-Chen Talks. As long as both sides have completed their internal evaluation and preparations respectively, we also hope that during the second half of the year we will be able to engage in the necessary dialogue on this issue as soon as possible.

Visa-on-arrival for Mainland tourists to Penghu awaits follow-up discussions

QUESTION: Will Mainland tourists to Penghu enjoy visa-on-arrival treatment effective in July?

DEPUTY MINISTER LIU:

■ In accordance with Article 4 of the Act Governing Relations Between People of the Taiwan Area and the Mainland Area, Mainlanders currently visiting Taiwan are subject to a permit system. Based on our last year’s experience of promoting the normalization of the “Mini-Three-Links,” we hoped to make travel to Kinmen and Matsu faster and more convenient for Mainland tourists. At that time we permitted Mainland visitors to use the visa-on-entry system to visit the Kinmen and Matsu areas and we are now taking a look at and reviewing this pilot program.

■ The Penghu County government emphasizes that tourism in that area is seasonal and that it hopes the central government can help them increase flights and tourists, and facilitate travel during the high season. With regard to the opinion of the Penghu County government, the relevant government agencies are in the process of getting a better understanding of this situation, and after their review they will provide some assistance. As for visa-on-arrival, there will be some follow-up study and discussion after the results of the pilot program review come out. At the present time we have no concrete timetable for this.

In response to WHO’s adjustments to overall epidemic prevention, CDC temporarily ceases to make a distinction between epidemic alert levels

QUESTION: Is Hong Kong still under a yellow travel alert?

DEPUTY MINISTER LIU:

■ With regard to Hong Kong’s announcement yesterday of confirmed active cases of H1N1 swine flu, there is a total of fifty-three, of which forty are from Hong Kong and thirteen from elsewhere. In terms of total cases, Hong Kong has had over 200 and the flu is likely to break out in the Hong Kong community.

■ The Hong Kong Affairs Bureau of the MAC as well as the CDC will be paying close attention to epidemic prevention measures taken to deal with contacts between Hong Kong and Taiwan as well as the developing health situation in Hong Kong.

■ Responding to WHO’s adjustments to overall epidemic prevention, the CDC temporarily ceases to make a distinction between epidemic alert levels. The MAC is currently still listing Hong Kong as a yellow travel warning area and has not made any other adjustments.