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- The MAC authorizes the SEF to write the ARATS for commencement of negotiations on the three major issues after the Lunar New Year holidays; the government will form a negotiation task force composed of specialized personnel
- It is hoped that the SEF and the ARATS will reach a consensus on the compensation issue concerning the contaminated milk powder issue
- SEF and ARATS have made an initial exchange of views on the permanent stationing of media reporters on the other side and on the mutual establishment of representative offices
- It is hoped that mainland China will allow more tour operators to organize tour groups to Taiwan
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MAC Regular Press Briefing
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Briefer : Johnnason Liu, Deputy Minister
Date : January 22, 2009
Location : Taipei |
QUESTIONS & ANSWERS
The MAC authorizes the SEF to write the ARATS for commencement of negotiations on the three major issues after the Lunar New Year holidays; the government will form a negotiation task force composed of specialized personnel
QUESTION: Straits Exchange Foundation (SEF) Chairman Chiang Pin-kung indicated in the SEF’s year-end press conference on January 21, 2009 that the government has been tardy in its authorization of negotiations. What is the current situation regarding the preparation of the relevant issues for negotiation? When will negotiations with mainland China commence?
DEPUTY MINISTER LIU:
■ Chairman Chiang Pin-kung was very surprised at reading today’s news reports. He believes that the media reporters have misunderstood him. He has personally called MAC Minister Lai Shin-yuan to explain the matter.
■ The government has issued an authorization on the cross-strait joint crime-fighting even before the Second Chiang-Chen Talks, and the relevant proposals have been submitted to the Executive Yuan for approval and provided to the SEF for reference. One proposal was to immediately commence negotiations on this issue; if the Mainland side thinks that it needs more time to prepare for this issue, then a team of experts can be formed to carry out discussions with the Mainland side.
■ Both sides have fully communicated on subsequent issues after the Second Chiang-Chen Talks, and a concrete direction has been set. The Mainland Affairs Council (MAC) has officially authorized the SEF today to write the Association for Relations across the Taiwan Strait (ARATS) to convey the hope to activate negotiations on cross-strait financial cooperation, the regular cross-strait flights, and the deregulation of Mainland capital to invest in Taiwan. The financial cooperation issue includes the signing of a Memorandum of Understanding (MOU) on banking, securities, futures, and insurance supervision. Moreover, the issues to be negotiated also include the cross-strait joint crime-fighting, on which an authorization had been earlier released. We believe that both sides will carry out communication within the authorized scope after the Lunar New Year holidays.
■ As for the other issues, the recommendations are being collected by the relevant agencies through a team of experts. Once this has been completed, both sides will then communicate with each other through the SEF and the ARATS.
QUESTION: Does the scope of the authorization released by the MAC to the SEF include the contents and the names of the negotiators? Does the letter authorized to be sent by the SEF to the ARATS specify a deadline for the start of the negotiations?
DEPUTY MINISTER LIU:
■ Any “authorization” does not specially restrict the date. This matter shall be determined through further communications and confirmation between the SEF and the ARATS. The main reasons for this are that the issues are diverse and the length of time needed by the relevant agencies for preparations is variable. This was already observed even during the First Chiang-Chen Talks.
■ On a certain level, the release of an “authorization” means that there is already a platform for discussing the said issue between the relevant agencies of both sides. The complete contents of the issues would only be provided once the negotiations are about to start. For example, with regard to the cross-strait joint crime-fighting, I earlier mentioned that the MAC has authorized the SEF to conduct negotiations on this issue. If there was any interim conclusion on this matter, it should be submitted to the Executive Yuan for approval. The contents of these conclusions would form the important basis on which the SEF and the relevant government officials can negotiate with the Mainland side.
QUESTION: The MAC authorized the SEF earlier today to write the ARATS. Was this due to the media reports that “the SEF complained about the tardiness of the MAC in releasing an authorization?” What is the pace in the government’s organization of a negotiations team? What is the progress in the communication between both sides on the various issues?
DEPUTY MINISTER LIU:
■ The authorization on the three issues was only released after a confirmation has been received recently from the Mainland side. Based on the timing, the MAC released the authorization yesterday morning. The matter had nothing to do with the media reports.
■ As to the formation of a negotiation team, the government will form an appropriate team composed of officials from relevant agencies in accordance with the issues to be discussed. The list of members has not yet been confirmed. It will be determined only after both sides have made the final communication.
QUESTION: Aside from the three issues that have been authorized, will there be any agreement signed on other issues during the Third Chiang-Chen Talks?
DEPUTY MINISTER LIU: The objective of the authorization on these issues was to enable the SEF to make relevant arrangements and conduct discussions with the ARATS. Of course we hope that a consensus can be achieved and that agreements can be signed. But right now we cannot be certain that the results will be the same as expected. Nevertheless, we hope that we will progress in such a direction.
It is hoped that the SEF and the ARATS will reach a consensus on the compensation issue concerning the contaminated milk powder issue
QUESTION: It is expected that on January 16, 2009 the mainland Chinese court will make the first-instance judgment on the cases involving the contaminated Sanlu milk powder. What kind of compensation are the Taiwanese companies demanding? How are subsequent matters to be addressed? The government was hoping that the SEF and the ARATS could assist the Taiwanese companies in obtaining compensation, but the ARATS has not yet responded until now. Would this matter be addressed as a cross-strait dispute? What is the MAC’s stance?
DEPUTY MINISTER LIU:
■ The Department of Health (DOH) has already made a public explanation of the compensation issue involving the contaminated milk powder incident. Through the assistance of a team of lawyers commissioned by the DOH, a total of twelve Taiwanese companies that suffered losses due to the contamination incident demanded compensation totaling approximately over NT$700 million. Based on our understanding, the demands for compensation were mostly directed at Duqing Company of Shandong, and only a few were directed at the Sanlu Group. The DOH had submitted the list of companies demanding compensation to the MAC on December 26 last year. We then requested the SEF to write its Mainland counterpart; hence the SEF sent the documents to the ARATS on January 5, 2009. Assistance will be rendered continually through the mechanism between the SEF and the ARATS.
■ The Sanlu Group has been reported to go bankrupt, but mainland China has formulated a set of regulations pertaining to bankruptcy. The team of lawyers commissioned by the DOH has recommended that the concerned companies immediately file a proof of claim in accordance with mainland Chinese law. Based on the mainland Chinese law, if a company goes bankrupt, the debt and obligations must first be fully determined, which requires a report to be submitted by the creditor or the debtor. The subsequent matters shall then be handled by the bankruptcy manager. Therefore, how to guarantee the debt and obligations will be an issue involving the legal procedures. We will request the SEF to monitor the progress through their communication channel with the ARATS and we will notify the Taiwanese companies regarding the developments.
■ The basic stance of the MAC is to protect the interests of the Taiwanese companies. Such a principle has never changed. The lawyers commissioned by the DOH believe that the interests of the victims would be significantly uncertain due to the level and procedures in the course of litigation in mainland China; therefore, they have recommended the adoption of a more concise report or a compensation demand that would bring a heavier pressure on the mainland Chinese company. The lawyers hope that the three-tier court procedures in the mainland Chinese judicial system can be simplified to an arbitration or a mediation process. However, it was found that the number of victims was too many, so that the social costs in independent lawsuits were also deemed excessive.
■ Since the SEF and the ARATS had exchanged views on this matter through letters and mail, it was mentioned that assistance on a special case-by-case basis would be rendered. We hope that a more concrete conclusion concerning this issue under the mechanism between the SEF and the ARATS could be reached, which would provide the best protection for the interests of the parties concerned. Nevertheless, the matter must be jointly faced by both sides, and the Taiwan side is intent on doing so. As to what the final result will be, we have to wait for the SEF and the ARATS to make further communication. We also hope that they can speed up the process.
SEF and ARATS have made an initial exchange of views on the stationing of media reporters on the other side and on the mutual establishment of representative offices
QUESTION: Will the mutual establishment of representative offices by the media agencies of both sides of the Strait be included in the negotiation agenda of the Third Chiang-Chen Talks?
DEPUTY MINISTER LIU: With regard to the permanent stationing of media reporters and the mutual establishment of representative offices on the other side, both the SEF and the ARATS have initially exchanged views during the Second Chiang-Chen Talks, but both sides have not continued to communicate actively on this matter.
It is hoped that mainland China will allow more tour operators to organize tour groups to Taiwan
QUESTION: What information does the MAC have concerning the Mainland tourists visiting Taiwan during the Lunar New Year holidays? Mainland China has further announced that residents of another twelve provinces and municipalities will be allowed to visit Taiwan for sightseeing. What is the MAC’s opinion?
DEPUTY MINISTER LIU:
■ Right now we have learned that during some days of the Lunar New Year holidays, the number of Mainland tourists visiting Taiwan for sightseeing will exceed three thousand. But this figure only refers to the number of applications. As to how many of them can actually come will have to rely on other factors such as the availability of plane tickets. We have to wait to see whether the number will actually exceed three thousand.
■ The number of Mainland tourists applying to visit Taiwan for sightseeing has increased due to the following reasons. First, the length of visit in Taiwan has been extended from ten to fifteen days. Second, the minimum number of tourists per group has been reduced from ten to five, thus making it much easier to organize tour groups. Moreover, the mainland Chinese authorities have also further announced that residents of another twelve provinces and municipalities will be allowed to travel to Taiwan for sightseeing, thus increasing the total number of provinces and municipalities to 25. Although there is still a gap compared with the overall total of 31, the relaxation has already allowed room for an increase in the number of Mainland tourists visiting Taiwan for sightseeing.
■ Nevertheless, the MAC still hopes that the Mainland side will properly allow more tour operators to organize tour groups to Taiwan. We believe that once various factors are ripe, we can expect the number of Mainland tourists visiting Taiwan to rise.