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Mainland Affairs Council

II. Cross-Strait Talks and Interactions

2006

January 2, 2006
MAC Chairman Jaushieh Joseph Wu notes at the Legislative Yuan that cross-strait economic and trade policy cannot be explained in two simple terms of "retrenchment" and "liberalization." Cross-strait policy in the future will continue to follow the original main course. However, the controllable part of westward investment must be managed more closely. Executive Yuan units and companies should mutually address detailed plans. The Ministry of Economic Affairs will also draft enforcing management proposals for these plans. "With proper management, there will be a lot of room for liberalization."

January 3, 2006
Direct cross-strait links from Kinmen and Matsu mark their fifth anniversary. According to statistics compiled by the Kinmen Service Branch of the Immigration Office, National Police Agency and the Kinmen Harbor Service Office, a total of 264,088 passenger trips were made from Kinmen to Xiamen in 2005, while the number of passengers traveling from Xiamen to Kinmen was 258,231, for a total of 518,719 trips both ways.

January 4, 2006
Public security officials in Guangdong Province, China, acting on the basis of the "Kinmen Accord," extradite major wanted criminals Lin Chen-hsing and Wu Chao-hsun to Taiwan.

January 6, 2006
MAC Chairman Jaushieh Joseph Wu states that following successive trials of renminbi (RMB) currency exchange services carried out by the government in the Kinmen and Matsu areas last March, it was found that many people purchased RMB in anticipation of currency appreciation, resulting in RMB purchases nine-fold the level of RMB sales. This result was not fully consistent with the government's policy objectives, and the program will therefore remain in the observation phase.

January 6, 2006
In response to a Taiwan Affairs Office announcement that two pandas would be selected as gifts to Taiwan, MAC Chairman Jaushieh Joseph Wu expresses at a Council news briefing that the authorities in China have not discussed the matter in advance with the government of Taiwan. They have instead disrespected Taiwan through the use of media to engage in persistent propaganda campaigns aimed at manipulating the panda issue and its united front tactic. The Council of Agriculture also notes that China cannot unilaterally announce that it will send the pandas without an import permit issued by Taiwan. A decision on whether or not the pandas will be allowed into Taiwan will be made by March 23, 2006.

January 6, 2006
The most recent issue of Canada's Kanwa Defence Review reports that over the past 10 years, China's navy, air force and army have worked steadfastly to develop all-weather reconnaissance ability aimed mainly at monitoring Taiwan.

January 6, 2006
Taiwan Affairs Office Spokesperson Li Weiyi explains that representatives of the Straits Exchange Foundation were unable to attend the funeral ceremony for Wang Daohan because Wang had specified his wish for a simple ceremony. On a separate affair, Dai Xiaofeng, head of the Exchange Bureau of the Taiwan Affairs Office, expresses hope that the Taiwan side will respect public opinion and actively cooperate with the relevant agencies so that China's gift of pandas can arrive in Taiwan at an early time.

January 6, 2006
The Legislative Yuan approves draft revisions to sections of the Offshore Banking Act during the third reading. The revisions will achieve the policy objective of assisting Taiwanese businesses in making greater use of offshore banking units (OBUs) as financial deployment centers for their overseas and China operations. The revised act also stipulates that domestic banking units liberalize and assist in the handling of such operations, so that the functions of OBUs can be carried out more completely and efficiently.

January 7, 2006
MAC Chairman Jaushieh Joseph Wu states that the current policies on cross-strait cargo charter flights and opening Taiwan to Chinese tourists will not affect the government's resolve and progress in moving forward. Cross-strait consultations need to be held on such issues as soon as possible in order to implement various management measures and achieve a win-win outcome of liberalization in a managed way.

January 7, 2006
In an interview with the Central News Agency, MAC Chairman Jaushieh Joseph Wu states that in light of China's repeated declarations that it will not abandon the "one China" and "one country, two systems" principles, the opportunity for cross-strait relations to achieve positive breakthroughs on highly political issues within the next two years, including the establishment of a mechanism of military mutual trust, the building of an interaction framework for peace and stability, and the opening up of political dialogue, seems unlikely. Based on observations, the variable most likely to change in cross-strait relations will be "within China itself."

January 9, 2006
Taiwan Thinktank releases its latest public opinion survey results. A total of 66% of the respondents agreed that the government should adopt more proactive management in cross-strait exchanges, and 65% responded that the government should not accept the one China principle as a prerequisite for the holding of cross-strait consultations.

January 17, 2006
The International Pledging Conference on Avian and Human Pandemic is held by the government of China along with the European Commission and World Bank. The conference brings together officials from over 90 countries and representatives of more than 20 international organizations to discuss the pledging of funds for the prevention of avian influenza. China refuses to invite Taiwan to send delegates to attend the event, ignoring the health rights and interests of the people of Taiwan. The refusal also hurts the feelings of the people of the two sides of the Taiwan Strait and is uncondusive to the healthy development of mutual trust between the two sides.

January 18, 2006
In an interview with Germany's Die Welt, MAC Chairman Jaushieh Joseph Wu states Taiwan's wish to have the importation pandas be handled in accordance to the international conventions of endangered species importation and exportation. Beijing has politically manipulated the panda gift issue by labeling it a "domestic shipment." With regard to China's refusal to allow Taiwan to gain observer status at the World Health Organization, Chairman Wu believes that Taiwan wants to take on responsibilities in regional disease prevention work. When avian influenza breaks out in neighboring countries, Taiwan will become a dead corner in the global disease prevention network.

January 19, 2006
The MAC states that in conjunction with the special project to expand the "mini-three-links" during the 2006 Lunar New Year holiday, natives of Kinmen and Matsu will not be required to join a group in order to use the links for travel to and from China between January 20 and February 13. On January 17, 2006, the Immigration Office of the National Police Agency announced an application notice for the full program. The office and its related service branches began accepting applications from that day.

January 19, 2006
MAC Chairman Jaushieh Joseph Wu states that the Lunar New Year charter flight program has been implemented for two consecutive years, and it is likely to continue for next year barring any unforeseen circumstances. The government also will not be content with just annual Lunar New Year charter flights, but rather will be satisfied if cross-strait consultations on passenger and cargo charter flights can be realized.

January 19, 2006
It has been discovered that people in China have registered the names of Taiwan's tea producing areas as trademarks. The MAC states that it will recommend representatives from the Taiwan Tea Merchants' Association to go to China and submit an application for an administrative relief to revoke the trademarks. If necessary, the matter will be resolved by legal means or through the World Trade Organization.

January 19, 2006
The Straits Exchange Foundation (SEF) states in a press release that the names of seven major tea-producing areas in Taiwan have been registered by certain persons in China. The foundation sends a special letter to the Association for Relations Across the Taiwan Strait expressing serious concerns. The SEF said it would ask the relevant agencies in China to confront this issue and promptly revoke all trademarks making unauthorized use of Taiwan place names.

January 19, 2006
The results of the "2005 Multinational Survey on Image of Taiwan" conducted by the U.S.-based Gallup Organization indicate that respondents in the U.S., Japan, the United Kingdom, France and Germany generally consider Taiwan and China to be two separate sovereign countries. Moreover, the majority said that China would incur a global punitive response if it used non-peaceful means to encroach on Taiwan's sovereignty.

January 24, 2006
MAC Chairman Jaushieh Joseph Wu states that China continues to intentionally avoid interactions with the government of Taiwan in attempt to exclude the involvement of the Taiwanese government's authority. China has also used breakthroughs in consultations on specific cross-strait exchange topics to conduct an offensive aimed at "de-governmentalizing" and stripped the involvement of public authority in talks with Taiwan. China further hopes to achieve the tactical objective of "internalizing cross-strait issues" and "placing Taiwan on equal standing with Hong Kong and Macao."

January 24, 2006
A MAC news release indicates that China's approval of the "anti-separation law" last March in attempt to legalize the use of force against Taiwan and unilaterally change the status quo in the Taiwan Strait has heightened cross-strait tension. This is the main reason that cross-strait relations have been unable to develop smoothly over the past year. In practice, China continues to intentionally avoid interactions with the Taiwanese government in attempt to exclude the involvement of the Taiwanese government's authority. China has also used breakthroughs in consultations on specific cross-strait exchange topics to conduct an offensive aimed at "de-governmentalizing" and stripped the involvement of public authority in talks with Taiwan. China further hopes to achieve the tactical objective of "internalizing cross-strait issues" and "placing Taiwan on equal standing with Hong Kong and Macao."

January 25, 2006
The first cross-strait fishermen shuttle boat approved by the Council of Agriculture, the Wang Tai Sheng, transports 50 Chinese fishermen back to Fujian for the Lunar Year Year holiday.

January 27, 2006
The MAC states that treasury funds of NT$36.102 million have been eliminated from the Council's Chinese Development Fund's (CDF) 2006 budget, therefore severely affecting cross-strait exchanges this year.

January 28, 2006
Taiwan's bid for a seat at the World Health Assembly is blocked by China. The Secretariat of the World Health Organization entered the proposal into the agenda of the Executive Committee in contravention of the committee's procedural rules.

February 3, 2006
The police forces on both sides of the Taiwan Strait cooperate to seize nearly 60 kilograms of heroine and uncover a major drug smuggling operation.

February 7, 2006
The 2006 cross-strait Lunar New Year charter flight concludes with six participating cross-strait airlines transporting a total of 27,397 passengers, an average passenger occupancy rate of 81%. Taiwan-based airlines carried 14,856 passengers, representing a 90% occupancy rate. China-based airlines carried 12,541 passengers, representing a 73% occupancy rate.

February 8, 2006
Vice Chairman Pu Zhaozhou of the China-based Straits Aviation Exchange Commission expresses the hope that cross-strait private industry organizations can immediately engage in discussions on holiday, weekend and routine passenger charter flights and cargo charter flights, reach a consensus, and arrange for their simultaneous implementation.

February 12, 2006
In a televised interview, MAC Chairman Jaushieh Joseph Wu expresses that certain people in China have stolen Taiwan's globally unique agricultural technologies. Moreover, Chinese President Hu Jintao recently demanded that Taiwanese businesspeople introduce one new type of agricultural product and technology to Fujian Province monthly. It is a move that would devastate Taiwan's agriculture. As a result, the Taiwanese government's engagement in proactive management is truly a practical approach to upholding the rights and interests of the Taiwanese agricultural sector and farmers.

February 13, 2006
China's Ministry of Commerce announces a decision to eliminate anti-dumping duties on unbleached kraft paper imported from the U.S., Thailand, Korea, and Taiwan.

February 15, 2006
According to statistics compiled by the Kinmen and Matsu harbor bureaus, 48,937 passenger trips were made between Kinmen and Xiamen during the 2006 Lunar New Year period, an increase of over 11,000 passengers, or 31%, over the same period in 2005.

February 15, 2006
China's Association for Relations Across the Taiwan Strait sends a letter to Taiwan's Straits Exchange Foundation expressing deep condolences over the death of Sun Yun-suan.

February 15, 2006
Chen Yunlin, director of the CCP Taiwan Affairs Office and the director-general of the State Council Taiwan Affairs Office, sends a telegram to Yu Hui-hsuan expressing deep condolences over the death of her husband Sun Yun-suan.

February 15, 2006
Statistics compiled by China's National Tourism Administration indicate that China received 4.11 million Taiwanese visitors in 2005 and that Taiwan has steadily become an important tourism destination for China. During the same period, 160,000 people visited Taiwan from China.

February 15, 2006
At the opening ceremony of the Cross-Strait Travel Industry Social, China's National Tourism Administration Director Shao Qiwei appeals for the two sides to work together on building a new cross-strait travel cooperation framework with "two-way interaction, smooth channels, sound mechanisms, orderly development, mutual support, and win-win cooperation."

February 15, 2006
Dai Xiaofeng, director-general of the Exchange Bureau under the State Council's Taiwan Affairs Office, welcomes private travel industry organizations in Taiwan to exchange views with their Chinese counterparts on technical issues to facilitate holding initial formal discussions between representatives of cross-strait private travel organizations.

February 21, 2006
MAC Vice Chairman Johnnason Liu receives Kuomintang legislative caucus whip Tseng Yung-chuan and legislator Chu Feng-chih. Vice Chairman Liu stresses that in 2002, the government began allowing Type 2 and Type 3 Chinese tourists to visit Taiwan and it promulgated related policy plans and approval measures. China, in contrast, has announced 81 countries that its citizens are allowed to visit. However, Taiwan has not been included on this list to date. China also has not announced related measures, which indicates that the Chinese authorities have not made any necessary preparations regarding the legal application procedures or other technical aspects.

February 22, 2006
The MAC states in a news release that it is the Taiwanese government's established policy to implement passenger and cargo charter flights and allow Chinese tourists to visit Taiwan through cross-strait negotiations. Two years ago, the government not only completed relevant plans to allow Chinese tourists to visit Taiwan, but it also promulgated related approval regulations. Moreover, Taiwan has repeatedly urged China to engage in immediate negotiation with Taiwan. All these gestures have clearly highlighted Taiwan's consistent and basic position. However, China has never made a positive response to Taiwan's appeals and demands. A Taiwan Affairs Office official has declared that China will "soon" announce its management regulations governing the visits to Taiwan by Chinese tourists. But in reality, China has consistently delayed progress on this issue. We will continue to monitor whether China will act on its words and see if it is sincere about negotiating with Taiwan.

February 22, 2006
In a meeting with a delegation led by Kuomintang legislative caucus whip Tseng Yung-chuan, Director Chen Yunlin of China's Taiwan Affairs Office expresses the hope that cross-strait private airline carriers can hold immediate discussions on the implementation of holiday and routine cross-strait passenger and cargo charter flight service based on the existing model. China is willing to meet and exchange views with members of the Democratic Progressive Party (DPP) who support the development of cross-strait relations. He hopes that they can jointly promote passenger and cargo charter flights across the Taiwan Strait and visits to Taiwan by Chinese tourists. The draft of "Regulations on the Management of Tourism from the Mainland Area to the Taiwan Area" by the National Tourism Administration and other related departments will be released soon.

February 24, 2006
The Bureau of Foreign Trade under the MOEA states that the two-way trade across the Taiwan Strait in 2005 totaled US$71.1 billion, netting Taiwan a surplus of nearly US$31.85 billion.

February 27, 2006
The MAC announces that according to its integrated analysis of public opinion surveys on cross-strait relations conducted last year by the Council and other institutions, an overwhelming majority of the people in Taiwan hopes that cross-strait relations will develop toward stability and peace. The majority also approves of the government's promotion of cross-strait exchanges in various fields under the principle that the security and interests of the nation are upheld. On the issue of domestic political parties or private organizations conducting exchanges with China, the vast majority of people believe that such exchanges should abide government laws and regulations and place priority on protecting the overall interests of Taiwan.

February 27, 2006
The Coast Guard Administration, Executive Yuan, announces the results of the joint investigation conducted by various agencies on the arrest of Chinese illegal immigrants in Taiwan from January to December 2005. During this period, the authorities tracked down a total of 744 cases of illegal immigration involving a total of 1,069 persons from China (887 males and 182 females) and 347 accomplices in Taiwan. Among them were six cases involving the breakup of planned illegal immigration and three cases involving organized smuggling intermediaries and sex trafficking rings.

February 27, 2006
The National Police Agency, Ministry of the Interior issues a report on the investigation and prosecution of Chinese residents for illegal actions in Taiwan between July 1 and December 31, 2005. The report states that 6,831 persons were arrested in this period, including 4,951 persons from China (531 for illegal immigration, 860 for visa overstays, 2,205 for working illegally or engaging in other illegal activities, and 478 for fake marriages). There were also 1,880 persons from Taiwan involved in the cases. There were 52 cases of arrests involving illegal immigration through intermediaries, intermediary arrangement of fake marriages for immigration purposes, and organized sex trafficking rings.

March 2, 2006
The International Trade Commission, Ministry of Economic Affairs, holds the first hearing on special defensive measures against low-priced towel imports from China under the WTO framework. Seven representatives from China, including officials of China's Ministry of Commerce, attend the hearing in Taiwan.

March 5, 2006
The Directorate General of Budget, Accounting and Statistics, Executive Yuan, releases the latest statistics on cross-strait trade. Last year, trade between Taiwan and China (excluding Hong Kong) amounted to US$71.7 billion. The total included US$51.8 billion in exports from Taiwan to China, and US$19.9 billion in imports from China to Taiwan, netting Taiwan a favorable trade balance of US$31.9 billion, an increase of US$3.5 billion from 2004.

March 6, 2006
The Institute for National Policy Research announces the results of its public opinion survey on the "First Anniversary of the Anti-separation Law." The survey shows that 87.1% of the public believes that Taiwan's future should be determined by the 23 million people of Taiwan.

March 8, 2006
Officials of the Bureau of Fair Trade for Imports and Exports under China's Ministry of Commerce state that China has noticed that following Taiwan's announcement in September 26, 2005 that special protection investigations would be launched against towel imports from China, the Taiwanese authorities again announced on March 1, 2006
that anti-dumping investigations would be carried out against towel imports from China. China believes that with the constant development of cross-strait economic and trade relations, it is normal to expect trade frictions to emerge. It is possible to resolve these frictions through negotiations.

March 8, 2006
The Straits Exchange Foundation announces the results of a public opinion survey showing that 33.1% of the public is in favor of Taiwan independence, a higher ratio than the 26.8% that supports maintaining the status quo.

March 9, 2006
While presiding over the "Third High-Level Conference on Prevention of Possible Avian Flu Invasion," President Chen Shui-bian states that the government should not only strengthen its efforts in information gathering and close monitoring of epidemics in China, but re-appeal to the international community to urge the Chinese government to make disease-related information fully transparent and readily available, in order to prevent epidemics from evolving into an human-to-human spread disaster of unprecedented scale. Taiwan should be more alert in its cross-border control, particularly in preventing the smuggling of birds from China, blocking China's fishing boats from entering Taiwan's territory, cracking down on human trafficking, and strengthening quarantine work for the "Mini-Three-Links" in Kinmen and Matsu. These efforts are the focus of Taiwan's current disease prevention work, and all relevant authorities should strictly adhere to their duties.

March 9, 2006
MAC spokesperson Johnnason Liu notes that a Joint Review Meeting convened by the Immigration Office of the National Police Agency, Ministry of the Interior has turned down an application requesting permission to film scenes at sites of the 228 Incident in Taiwan for the major motion picture "Cloud and Water Ballad" financed by China's Central Cinema Group. The application was turned down because the original setting of the incident no longer exists in Taiwan and the relevant scenes have already been shot in China.

March 9, 2006
It is discovered that the official WHO website has erroneously listed Taiwan as a part of China as an area affected by avian influenza. After a strong protest lodged by Taiwanese officials, the WHO updated its website information on March 13, 2006.

March 10, 2006
While attending the "Conference on Sustainable Economic Development in Taiwan" organized by the Government Information Office, Executive Yuan, MAC Chairman Jaushieh Joseph Wu states that the MAC will promptly propose a mechanism for proactive management and establish order in cross-strait economic and trade relations. It is hoped that under the current framework, cross-strait capital, personnel, and technical exchanges can be carried out with more order. With regards to direct cross-strait transportation links, the most important issue is to initiate negotiations. Without the resumption of negotiations, it will be difficult to for the direct transportation links to move forward.

March 10, 2006
The MAC issues a press release indicating that the controversial issue regarding the recent applications of China's film and television industry figures seeking entry into Taiwan, it is evident that the current laws and regulations are unable to fully meet the new exchange needs emerging from increasing cross-strait exchanges. Therefore, there is a need to review the relevant laws and regulations and adjust to new trends in cross-strait exchanges accordingly.

March 11, 2006
Over 300 followers of the Sanshan Guowang Temple in Changhua County board a Kinmen-based high-speed passenger ship at Taichung Harbor to travel to Guangdong via the "Mini-Three-Links" for religious activities. The voyage was the first "Mini-Three-Links" trip to depart from Taichung Harbor.

March 12, 2006
In an interview with the Central News Agency, MAC Chairman Jaushieh Joseph Wu responds to China's announcement about "contacting hard-line pan-green." Chairman Wu expresses his willingness to accept an invitation to visit China under no preconditions and hopes that China can make a quick response. He believes that the "hard-line strategy" has two objectives: to internally divide the pan-green camp and to make a soft appeal to the international community. Offering insincere goodwill to Taiwan is the start of China's next wave of international propaganda.

March 13, 2006
MAC Chairman Jaushieh Joseph Wu notes that the trial implementation of RMB-NTD exchange services in Kinmen and Matsu has resulted in serious imbalances that are markedly at odds with the situation initially anticipated by the Central Bank. The two sides of the Taiwan Strait should sign a currency settlement accord and continue to monitor the trial program in Kinmen and Matsu as a reference in extending RMB currency exchange operations to the main island of Taiwan.

March 14, 2006
Premier Su Tseng-chang states that promotion activities by Chinese entertainers can be treated as commercial activities, and that the government can study the possibility of relaxing related regulations. The MAC held an interagency conference to address the matter of easing restrictions on Chinese entertainers' visits to Taiwan. Government Information Office Minister Cheng Wen-tsan indicates that the rules can be relaxed accordingly to allow Chinese entertainers to visit Taiwan for activities that fall within a reasonable scope based on the needs of related programs or movie showings, with the aim of facilitating cross-strait exchanges.

March 16, 2006
MAC Chairman Jaushieh Joseph Wu states that any person from Taiwan that accepts citizenship status in China will lose their citizenship status in Taiwan immediately. The Statute Governing Relations between Peoples of the Taiwan Area and Mainland Area further stipulates that the "the responsibilities and obligations resulted from [their] status as the people of the Taiwan Area (such as military service and payment of taxes) are not excused or exempted."

March 16, 2006
The MAC issues a press release indicating that interview mechanisms for immigrants will be implemented more comprehensively after the establishment of the Immigration Office. At present, the government also has interview measures for foreign spouses. It will not lower the scope of administration specifically for Chinese spouses or shift to a sample-based inspection management system. At the same time, if more effective border controls are not adopted and post-entry sample inspection measures are followed, it will require a large commitment of human and material resources to carry out inspections. In the end, the operational costs may exceed the expected results.

March 16, 2006
The Coast Guard Administration seizes 58 Chinese residents posing as fishermen in an attempt to enter Taiwan illegally with forged Taiwanese passports.

March 17, 2006
The International Trade Commission, Ministry of Economic Affairs, decides to implement relief measures against towels imports from China and also investigate the damages to the domestic towel industry caused by dumping. It was found that imported towels from China have indeed caused market disorder and substantive damages to Taiwan's towel industry.

March 17, 2006
In response to an EU accusation of dumping of shoes from China, shoe manufacturers on the both sides of the Taiwan Strait submitted a counterplea. Seven China-based Taiwanese shoemakers established a federation to respond to the EU action. The Taiwan Footwear Manufacturers Association also took concrete actions in support of the counterplea.

March 18, 2006
The MAC notes that the revised Statute Governing Relations between Peoples of the Taiwan Area and Mainland Area, promulgated by the government on March 1, 2004, clearly stipulates in Article 9-1 that any persons of the Taiwan area who have a household registration in the mainland area or hold a passport issued by the PRC shall be deprived of their status as a person of the Taiwan area and any rights derived thereof, and their household registration in the Taiwan area shall be annulled by the household registration authorities.

March 18, 2006
The Economic Daily News reports that the secretariat of the World Trade Organization has released its review report on China's trade policy. The report indicates that Taiwan had a US$58 billion trade surplus with China last year, making Taiwan the largest source of trade deficit for China.

March 22, 2006
At a provisional press conference, the MAC and the Ministry of the Interior, Ministry of Transportation and Communications, Ministry of Economic Affairs, Council of Agriculture, Financial Supervisory Commission and other related authorities issue a joint statement on "Mechanisms for the 'Proactive Management and Effective Liberalization' of Cross-Strait Economic and Trade Relations," noting that a more comprehensive set of measures would be completed by the end of June.

March 22, 2006
China's Ministry of Commerce announces an initial ruling that Japan and Taiwan are dumping PBT resin and decides to start anti-dumping investigations.

March 23, 2006
In the latest issue of his "President A-Bian E-Newsletter," President Chen Shui-bian makes a sincere appeal to the leadership of China to let the giant pandas remain in their natural habitat and grant them the same basic inalienable right of existence that is granted to people.

March 23, 2006
During an inspection tour of the Hsinchu Coastal Patrol Command at Nanliao Fishing Harbor, President Chen Shui-bian states that several of the major public security problems currently facing Taiwan are unavoidably connected to China, including the problems of drug and gun smuggling, human trafficking, telephone fraud, illegal immigration and the stowing of wanted criminals.

March 24, 2006
Premier Su Tseng-chang states that pandas are an internationally protected species and the decision on whether or not to allow for their importation to Taiwan must be handled in accordance with Taiwan's Wild Animal Protection Act, examined by the Cabinet-level Council of Agriculture, and treated in accordance with the Washington Accord.

March 28, 2006
MAC Chairman Jaushieh Joseph Wu recommends and introduces a series of books titled the "Practical Guide for Taiwan Investors." The series include four volumes on investment, business management, financial and tax affairs, and financial and economic laws and regulations in China to assist Taiwanese businesses with operations in China.

March 28, 2006
At the conclusion of its third meeting, the Giant Panda Examination Committee under the Council of Agriculture, Executive Yuan determines that under Paragraph 2 of Article 26 of the Enforcement Rules of the Wildlife Conservation Law, a document cannot be issued to applicants to use for the application of an export permit from China at the present time.

March 31, 2006
During a policy interpellation at the Legislative Yuan, Premier Su Tseng-chang states his approval of signing a mutual accord between the police authorities on both sides of the Taiwan Strait in order to facilitate a good management channel for joint crime fighting and achieve public security objectives.

April 4, 2006
The Ministry of Transportation and Communications states that the Kinmen County Government has established the passenger wharf, facilities, and passenger customs building at the Shueitou Port after a period of planning and construction. The port officially began operations on November 7, 2005. The Executive Yuan has agreed to designate Shueitou as an offshore island passenger transportation port.

April 4, 2006
China News Service reports that China, Hong Kong and Taiwan customs authorities joined hands to carry out a bust netting NT$32 million in illegal drugs.

April 6, 2006
Taiwan job search website 1111 releases the results of a job survey of students of major higher education institutions in Shanghai, Zhejiang and, Jiangsu, showing that nearly 90% respondents want to find work or undergo professional training in Taiwan.

April 7, 2006
At a press briefing, MAC Vice Chairman Johnnason Liu states that the Taiwanese government has already allowed Category-1 Chinese tourists to visit Taiwan. However, issues such as the issuance of visas and travel documents have to be resolved through cross-strait negotiations. China has always conducted negotiations first before allowing its people to travel to other countries. However, it has delayed allowing its people to visit Taiwan for sightseeing and has even restricted them through regulating administrative orders. He also notes that China's implementation of zero-tariff measures on 15 Taiwanese fruits has not resulted in significant benefits to Taiwanese farmers. Taiwan hopes that China will improve its "internal mechanism" and revert to the "regular mechanism" to manage cross-strait agricultural exchanges, so that we can expect to achieve better results under the "market mechanism."

April 11, 2006
At its 52nd meeting, the International Trade Commission under the Ministry of Economic Affairs reaches a resolution on proposing temporary relief measure to raise the tariff on towel products imported from China. It is a response to an application submitted by the Yunlin Towel Industrial Technology and Development Association.

April 12, 2006
In response to the Chinese government's denial of an application by Taiwan media to cover KMT Honorary Chairman Lien Chan's visit to China, the Association of Taiwan Journalists issues a statement sternly condemning China for its long-term undemocratic behavior of restricting the freedom of news reporting.

April 12, 2006
Premier Su Chen-chang states at an Executive Yuan meeting that with regard to cross-strait cargo charter flights and institutionalized holiday or weekend charter flights, Taiwan can maintain an open approach and not exclude any possibilities as long as bilateral negotiations are conducted.

April 13, 2006
The China Times reports that President Chen Shui-bian disclosed that the International Crisis Group will change Taiwan's membership name and title in order to invite China to join the group and enable the group to set up an office in Beijing.

April 14, 2006
The first economic conference between the CPC and the KMT is held in Beijing, with over 50 Taiwanese enterprises attending. MAC Chairman Jaushieh Joseph Wu states that the government will monitor the conference but is not concerned about it. He believes that Taiwanese enterprises can play a positive role in cross-strait interactions.

April 14, 2006
The MAC issues the results of a public opinion survey indicating that 76.6% of the public in Taiwan agrees that, "Taiwan is a sovereign and independent country." As much as 84.3% of the public also supports the view that the future of Taiwan should "be determined by the people of Taiwan."

April 14, 2006
In response to the reports that high-precision machineries exported by Taiwan to China could be used for military purposes, the Bureau of Foreign Trade, Ministry of Economic Affairs states that relevant agencies are inspecting information on specific export products and cases that could be involved. The Bureau is inspecting all machine centers, metal cutting lathes, and turning centers exported to China since 2005. Within the next several days it will further verify whether or not these machines have been illegally used based on post-export control data provided by exporters of high-precision machineries.

April 14, 2006
The International Trade Commission, Ministry of Economic Affairs reaches a conclusion, which determined that a quantity-based tariff will replace the current ad valorem tariff on towel products imported from China. The tariff rate will be set at NT$42 per kilo (about 60% tariff rate) in the first year, with the rate to be steadily lowered in subsequent years.

April 15, 2006
In response to seven measures announced by China's Taiwan Affairs Office on the sale of agricultural products from Taiwan, the Council of Agriculture states that it welcomes measures that are beneficial to the Taiwanese farmers as long as they do not violate related regulations or threaten Taiwan's national security. However, if China is sincere in assisting the Taiwanese farmers, it should be more than willing to help resolve the matters of falsely labeled Chinese agricultural products as Taiwan imports, the registration of Taiwan agricultural production area names as trademarks, and the infringement on agricultural-related intellectual property rights, such stealing plant species and farming technology.

April 17, 2006
MAC Chairman Jaushieh Joseph Wu states that among the 15 policy measures proposed at the CPC and the KMT economic forum, many of the agricultural and fishing-related measures have limited substantive benefits. The government needs to inform the public that many of the measures are simply a formal announcement of preexisting practices and therefore represent a repackaging of the same old thing.

April 19, 2006
At an Executive Yuan meeting, Premier Su Chen-chang states that the consensus reached at the CPC-KMT Forum can fully considered for promotion if they are beneficial to Taiwan. There is no need to reject the proposals simply because of their source. However, the promotion of the measures must be in accordance with the principle of Taiwan's identity. The government views the forum as a private inter-party exchange without any legally binding effect on government policy. However, government agencies will continue to carry out their administrative tasks and plan promotional measures in accordance to the law.

April 19, 2006
China underwent a WTO trade policy review from April 19 to 21, 2006
in Geneva, Switzerland, its first review since joining the organization four years ago. The review also looked in detail at the cross-strait economic and trade relations.

April 19, 2006
Deputy Minister Lee Jen-chyuan of the Council of Agriculture states that the council will soon release a "place of origin mark" for Taiwan fruit. It will also coordinate with the Taiwan Farmers' Association within the next month and commission the association to register the mark in China.

April 19, 2006
China accepts 153 repatriated Chinese stowaways in Matsu, witnessed by the Red Cross Society of the Republic of China.

April 20, 2006
While attending a Taiwan Economy and Industry Association members meeting, Premier Su Chen-chang states that the government of Taiwan announced four years ago that it would allow Chinese tourists to visit Taiwan. These visits have been obstructed by the threshold established by the Chinese authorities, which have not yet listed Taiwan as a tourism destination for its residents. Taiwan has long adopted a flexible approach to this issue and welcomes Type 2 and Type 3 Chinese tourists to visit Taiwan. However, China has not yet allowed Type 1 tourists to travel without restriction to Taiwan.

April 24, 2006
The Ministry of Justice (MOJ) delivers a report on "Strengthening Investigation and Prosecution of Illegal Activity by Persons of the Mainland Area in the Taiwan Area," at the 169th MAC council meeting. The report indicates that according to MOJ statistical data, between 2001 and the end of 2005, 18 types of illegal action, mainly criminal in nature, were perpetrated by Chinese people in Taiwan. These include crimes of posing public danger, offenses of forging instruments or seals, offenses against sexual autonomy, offenses against sexual morality, gambling, murder, offenses against personal liberty, larceny, punishment of Smuggling Act, violations of the Narcotics Endangerment Prevention Act, Fishery Law, Employment Services Law, National Security Law, Statute Governing Relations between the People of the Taiwan Area and the People of the Mainland Area, Personal Information Protection Act, Immigration Law, and other cases.

April 24, 2006
The MAC issues a report on "Strengthening Quarantine and Prevention of the Spread of Avian Influenza to Taiwan via the Mini-Three-Links in Kinmen and Matsu" at a Council meeting. The report emphasizes that in order to bolster quarantine inspection and passenger transfers to the main island of Taiwan via Kinmen and Matsu under the Mini-Three-Links, relevant agencies have established a "Six-line Defense Quarantine Mechanism." Moreover, the Council of Agriculture will use dogs at Shueitou Port in Kinmen to sniff out passenger luggage for Chinese animals and plants. The relevant agencies have also set up stations to monitor travelers and migratory birds with signs of irregular health. Additionally, the Coast Guard Administration is implementing a "Clear Sky Program" calling for enhanced patrols of the seas off Kinmen and Matsu to stop smugglers, stowaways and other illegal activity.

April 24, 2006
While attending a KMT legislative caucus, MAC Chief Secretary Jan Jyr-horng states that under current laws and regulations, the governments on both sides need to sign a currency settlement agreement before financial institutions can be allowed to offer full-scale RMB exchange services. The MAC hopes that an agreement can be reached within six months. If this cannot be completely within the time frame, the MAC and other agencies will study and draft a set of measures to establish, within the limits of the law, designated currency exchange points to facilitate future direct visits to Taiwan by Chinese tourists.

April 25, 2006
MAC Vice Chairman Johnnason Liu states that the Mini-Three-Links were implemented to provide a convenient cross-strait channel for the Kinmen and Matsu residents of Taiwan. The addition of a direct link between Kinmen and Quanzhou is indicative of the government's consistent pragmatic attitude in managing affairs related to the Mini-Three-Links. In the future, the government will continue to promote the implementation of the Mini-Three-Links policy under the principles of upholding Taiwan's identity and policy initiative.

April 25, 2006
In response to recent accusations by Taiwanese residents of China operating underground concentration camps in Sujiatun and other labor camps, and prisons where the organs of Falun Gong practitioners are sold for profit and the victims' bodies subsequently incinerated on site, the Straits Exchange Foundation (SEF) sends a letter to the Association for Relations Across the Taiwan Strait asking that it contact the relevant agencies in China to thoroughly investigate the case, strictly punish those involved, and uphold basic human rights.

April 25, 2006
A tour group organized by Sun Star Travel Service Co. in Kaohsiung City's is involved in a bus accident during a tour of Wuyi Mountain in Fujian Province, resulting in serious injuries to five tour members and light injuries to 22. Upon learning about the incident, the SEF promptly requested the Zhangzhou chapter of the Taiwanese Businessmen's Association to visit and look after the injured and assist them in transferring to Zhongshan Hospital in Xiamen for further treatment.

April 26, 2006
With regard to the matter of four Taiwanese travelers seriously injured in a bus accident in Zhangzhou city, Fujian Province, the Straits Exchange Foundation (SEF) sends a letter to the Association for Relations Across the Taiwan Strait (ARATS) requesting consent for SEF personnel to accompany the families of the injured and assist in the arrangement of related medical matters. However, after contacting various parties, no positive responses were given by the ARATS regarding the matter by the time the families were due to depart from Kinmen for China.

April 26, 2006
The Bureau of Foreign Trade, Ministry of Economic Affairs convenes a meeting to review the lifting of restrictions on imports from China. It invites the Council of Agriculture, Environmental Protection Administration, Directorate General of Customs, other customs authorities, Industrial Development Bureau and related industry associations to jointly review the relaxing of restrictions on Chinese import items proposed by businesses and business associations. The meeting initially agreed to lift restrictions on five import items from China: iron-titanium powder (anti-rust pigment), bromomethane (methyl bromide), automotive safety airbag controllers, and computer flat/ribbon cables (for 150 watt systems).

April 27, 2006
The MAC and the Ministry of Economic Affairs (MOEA) jointly announce that Taiwanese enterprises will be allowed to invest in low-level semiconductor packaging and testing services and small panel production in China. MAC Chairman Jaushieh Joseph Wu states that the policy is the product of deliberation by the Executive Yuan and National Security Council, consensus among relevant agency heads, and prior extensive negotiation with related parties. MOEA states that from April 28, cross-strait investment in "low-level semiconductor packaging and testing services" and "mid-level processing of under-four-inch panels" would be reclassified from restricted to general (allowed) investment.

April 28, 2006
The Center for Disease Control under the Department of Health, Executive Yuan states that it was notified by the Chinese Center for Disease Control and Prevention on April 27, 2006
that one person in China's Sichuan Province has been diagnosed with the avian influenza virus.

April 28, 2006
The Bureau of Foreign Trade, Ministry of Economic Affairs, announces that in the first two months of 2006, Taiwan's total trade with China's amounted to US$12.39 billion, up 18.8% from the previous year. The figure represents 19.7% of Taiwan's total foreign trade during the period, an increase of 0.7 percentage points over the same period in 2004.

April 28, 2006
Public security authorities in Guangdong Province arrest Tang Jung-hung, a member of the gang of Chang Hsi-ming, and repatriate him to Taiwan in accordance with the Kinmen Accord.

April 29, 2006
China again uses the threat of withholding UN peacekeepers from Haiti and enlisting the international community to pressure Haiti in an unreasonable attempt to prevent Premier Su Chen-chang from attending the inauguration of Haiti's new president on May 14, 2006. The Ministry of Foreign Affairs sternly expresses its strong dissatisfaction with China's repeated suppression of Taiwan in the international arena.

April 30, 2006
In a media interview during an inspection tour of the Taiwan Orchid Plantation, Premier Su Chen-chang strongly criticizes China for stopping at nothing to pressure Taiwan, even going as far as obstructing the premier's attendance at the presidential inauguration in Haiti.

May 1, 2006
The National Police Agency under the Ministry of the Interior announces revisions to the "Notice on the Submission of Documentation by Mainland Area People Applying for Entry into Kinmen and Matsu."

May 1, 2006
The National Police Agency under the Ministry of the Interior revises the "Regulations Governing the Trial Operation of the Entry and Exit of Persons Traveling between Kinmen and Matsu and the Mainland Area." From May 1, 2006, natives of Kinmen and Matsu who reside in Taiwan can freely travel across the Strait via the "Mini-Three-Links" route without the need to travel in groups. They may also be accompanied by their spouse, lineal blood relatives, and second-degree relatives, such as collateral blood relatives, spouse and minor children. The Regulations are not applicable to persons with civil servant status.

May 1, 2006
China's General Administration of Quality Supervision, Inspection and Quarantine announces that from May 1, 2006
the number of Taiwan fruit types approved for import to the Chinese market after inspection and quarantine will be officially increased from 18 to 22. At the same time, it will allow import of 11 major types of Taiwan produce after inspection and quarantine and at a zero tariff rate. Additionally, China officially permits Taiwan fishing vessels to export their catch to Fujian in accordance with the methods of China's self-catch fishing vessels, by directly presenting their license to fish on the high seas along with trade contract and invoice documents to China's inspection and quarantine authorities for examination. China no longer requires Taiwanese fishing vessels to have a health certificate issued by Taiwan's responsible authorities.

May 3, 2006
Ministry of Foreign Affairs Spokesman Michel Lu states at a press conference that China has constantly exerted pressure on even nongovernmental organizations (NGOs) in Taiwan, such as Red Cross and others, to prevent their participation in international bodies. This is fundamentally unhelpful to the improvement of cross-strait relations.

May 3, 2006
The Ministry of Economic Affairs announces that five items will be added to the list of products that can be imported from China to Taiwan, including CCC2903.30.90.21-4 bromoform (tribromomethane).

May 4, 2006
Director Yang Chia-chun of the Department of Legal Affairs at the MAC indicates in an interview that over the past two months, five batches of repatriation of Chinese stowaways have been conducted-the highest frequency recorded in the past ten years. Moreover, there are still 689 illegal Chinese stowaways held at the Detention Center for People of the Mainland Area awaiting repatriation.

May 5, 2006
After Gambia and other allied countries issue a letter to the president of the U.N. General Assembly and U.N. secretary-general to convey Taiwan's position on ceasing the functioning of the National Unification Council (NUC) and the application of the National Unification Guidelines (NUG), China's ambassador to the U.N. Wang Guangya sends a letter to the U.N. secretary-general reiterating China's old cliche about the so-called "one China." The letter criticizes Taiwan for ceasing the functioning of the NUC and the application of the NUG, saying it is aimed at promoting Taiwan independence, provoking peace in the Taiwan Strait, and creating tensions in cross-strait relations. The Ministry of Foreign Affairs believes that Wang's remarks run counter to the facts, and therefore issued a stern explanation.

May 5, 2006
Sun Yafu, deputy director of China's Taiwan Affairs Office and vice chairman of the Association for Relations across the Taiwan Strait (ARATS), states that former Vice Minister of Commerce Zhang Anmin has been appointed as ARATS vice chairman.

May 9, 2006
The Bureau of Food and Drug Analysis under the Department of Health (DOH) recently completed testing of a batch of Chinese drugs. It found that among 34 drugs seized by police from people entering Taiwan via the "Mini-Three-Links" route, all of them were aphrodisiacs, sedatives, local anesthetics, and other types of western medicine. The DOH earnestly urged that the people planning to visit China not buy China's pharmaceuticals that are not properly marked or intended for inappropriate uses.

May 9, 2006
Vice Minister Jiang Yaoping of China's Ministry of Information Industry led a Chinese delegation composed of representatives from information industries across the Strait to attend the "Second Cross-strait Forum on Technical Standards for the Information Industry."

May 10, 2006
The Eighth Cross-Straits Fair for Economy and Trade will be held on May 18, 2006. The first "Penghu Day" activity will be held during the Fair. The event will include a Penghu exhibition pavilion and a "Fuzhou-Penghu Cooperation Seminar."

May 11, 2006
Taiwan's Nantou County Council and the Standing Committee of the Nanjing Municipal People's Congress sign an "Agreement on the Establishment of Exchange and Cooperation Relations" in Nanjing, officially creating a normalized exchange and liaison channel. This is the second such agreement signed by the Jiangsu Standing Committee of the People's Congress following a similar agreement inked between Wuxi City and the Taitung County Council in Taiwan.

May 17, 2006
The MAC issues a press release indicating that Taiwan has commissioned relevant organizations to conduct communication and liaison with their Chinese counterparts on the issues of the promotion of cross-strait cargo and passenger charter flights, the opening up of tourism in Taiwan for Chinese tourists, and China's intention to import Taiwan's agricultural products. Certain results have been reached in this regard. However, China has only paid lip-service to these matters and has not actively followed up by holding negotiations. The MAC appeals to China to show its sincerity by respecting and promptly making a concrete reply to Taiwan's proposal through the windows designated by both sides, and by actively arranging for the holding of cross-strait negotiations on related issues.

May 17, 2006
Deputy Director Liu Junchuan of the Economic Affairs Bureau under the Taiwan Affairs Office (TAO) of China's State Council indicates during a press conference at TAO that it is inappropriate for personnel of Taiwan's Mainland Affairs Council (MAC) and Straits Exchange Foundation (SEF) to participate in the negotiations between civilian organizations of both sides across the Strait on technical issues pertaining to tariff-free treatment for Taiwan's agricultural and fishery product exports to China.

May 20, 2006
Director General Tsai Lien-sheng of the Intellectual Property Office under the Ministry of Economic Affairs will visit Beijing on May 23, 2006
to discuss with officials of China's Trademark Office and other related agencies regarding the impact on commercial opportunities of Taiwanese companies due to the fact that many Taiwan's place names have been illegally registered as trademarks in China.

May 23, 2006
Vice Minister Jiang Yaoping of China's Ministry of Information Industry states that nearly two billion minutes were spent in making cross-strait phone calls last year, equally about 5.4 million minutes a day.

May 23, 2006
China officially begins using the new double-hulled vessel "Haixia" for cross-strait repatriation work. Deputy Director-general Li Bingcai of China's Taiwan Affairs Office states that he is pleased to see further strengthening in cross-strait cooperation to jointly combat "snakeheads" (people smugglers), effectively resolve the problem of smuggling for criminal purposes, and jointly create a benign atmosphere across the Strait.

May 25, 2006
Straits Exchange Foundation (SEF) Secretary-General You Ying-lung states that the SEF will organize the 2006 Dragon Boat Festival Forum and Gathering for the Taiwanese Businessmen's Associations (TBA)" on June 1, 2006
at the Grand Hyatt Taipei. The event will be attended by over 150 presidents and top officials of TBA chapters, Taiwanese business representatives, and the work personnel of financial, economic and legal consulting teams. The total number of participants will be over 200.

June 6, 2006
Tsai Lien-sheng, director general of the Intellectual Property Office under the Ministry of Economic Affairs, states that trademark registration of the name "Alishan Tea" by a China-based producer will be cancelled. In eight similar trademark registration cases involving the names of well-known tea-producing regions in Taiwan, the legitimate trademark owners are requested to provide ample evidence and reason for demanding cancellation of the China-registered names. The Chinese authorities have promised to complete their review within a year and in most cases the disputed trademarks will be cancelled without problem.

June 6, 2006
China's All-China Federation of Returned Overseas Chinese and Taiwan's Overseas Chinese Association jointly held a "Peace and Development Forum," marking the first official contact between overseas Chinese organizations on both sides of the Taiwan Strait.

June 9, 2006
Hong Kong's Immigration Department announces that from June 12, 2006
holders of "Mainland Travel Permit for Taiwan Residents" bearing a valid entry/exit endorsement issued by China may also visit Hong Kong and stay for up to seven days, provided they meet the normal immigration requirements.

June 14, 2006
The Taiwan External Trade Development Council (TAITRA) invites 18 heads of local farmers' associations in Taiwan and other agricultural industry representatives to meet with China's farm product wholesalers and trading companies at the TAITRA's Beijing representative office to discuss details of procurement of Taiwan fruit and vegetables.

June 17, 2006
The Cross-Strait Young Leaders Roundtable Conference and signing ceremony for the "Cross-strait Youth Exchange and Cooperation Outlook" were held in Fuzhou. Participants discussed the development direction of the cross-strait forum and the outlook for cross-strait youth cooperation and exchanges.

June 18, 2006
Cargo shipping routes are inaugurated between Shijing Harbor in Quanzhou, Fujian Provinces and Magong Harbor in Penghu. A ceremony for the maiden voyage marked the first direct transportation of cross-strait cargo to Penghu from China.

June 20, 2006
The MAC raises NT$2.2 million from civilian organizations to continue a subsidy program for Chinese graduate students intending to conduct research in Taiwan. A total of 32 graduate students will be selected to receive the subsidies in 2006.

June 22, 2006
Taiwan and China held bilateral negotiations on the special defensive (import relief) measures imposed by Taiwan on toweling products from China. It was the first official negotiation between both sides under the WTO framework since the end of 2002.

June 23, 2006
The heads of 12 airlines across the Strait reached a consensus on two items during a gathering held in Beijing. These were: 1) to make structural arrangements for facilitating the speedy implementation of holiday and specialized charter flights in the present stage; and 2) to further promote weekend and normalized charter flights and facilitation measures for cargo charter flights, and to make continued efforts to promote comprehensive, direct and two-way direct air transportation links across the Strait.

June 23, 2006
The WTO announces the results of its first Trade Policy Review Report of the "Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu" since Taiwan's entry to the trade body. The report underscores the increased importance of cross-strait trade for Taiwan's economy, and notes that the Taiwanese authorities must further relax restrictions on cross-strait transportation to facilitate the growth of cross-strait trade.

June 24, 2006
China holds its first commercial product promotion fair in Penghu-the Fujian Outstanding Home Goods and Gifts Fair. The fair is held from June 24 to June 26, 2006.

June 25, 2006
A shipment of 110 tons of Taiwan-grown bananas arrives at Haitian Wharf in Xiamen.

June 26, 2006
The MAC indicates that the Taiwanese government should make use of the favorable conditions of Kinmen and Matsu due to their intermediary position in the Taiwan Strait and special legal provisions granted to them to further improve the educational environment, encourage the children of China-based Taiwanese businesspeople to study on the two islands, and provide a new model of educational options for them. The MAC also suggests that the Taiwanese government study the possibility of allowing the Chinese cadres of Taiwanese companies in Fujian Province to study the continuing education courses in Kinmen to facilitate the development of such companies.

June 26, 2006
The Cross-Strait Industrial Common Market Forum is held from June 26 to 29 in Nanning, Guangxi Province. The forum is aimed at summing up the latest achievements of cross-strait economic and trade cooperation, deepening cross-strait economic and trade exchange and cooperation mechanisms, exploring the conditions for creating a cross-strait industrial common market, enhancing the social functions and economic benefits of cross-strait economic and trade cooperation, as well as further advancing the depth and scale of economic and trade exchange cooperation.

June 27, 2006
Airline operators International SOS and the Deer Jet Co., Ltd., make a joint announcement that the direct cross-strait charter flights for emergency medical rescue services will be implemented.

June 29, 2006
The Bureau of Foreign Trade releases cross-strait trade statistics showing that Taiwan's accumulated trade surplus with China in the first four months of 2006 broke through the US$10 billion mark to reach US$12 billion, a historic high compared to the same period in previous years.

July 1, 2006
China's Taiwan Affairs Office and the All-China Journalists Association jointly hold a cross-strait journalist joint news coverage activity for the launch of trial operation of the Qinghai-Tibet Railway. The event is joined by 14 journalists from China and Taiwan.

July 7, 2006
MAC Vice Chairman Johnnason Liu states that it is the responsibility of the investment host country to resolve the financing problems of Taiwanese companies. The Chinese authorities should resolve such matters by regular mechanisms and not by selective means. Nor should such mechanisms be suspended due to the activities of any politician in Taiwan.

July 7, 2006
The Ministry of Transportation and Communications announced six operational procedures for applications to operate cross-strait cargo and passenger charter flights, effective immediately. They include procedures for the application of airline operators in Taiwan and China to operate specialized cross-strait cargo charter flights, holiday passenger charter flights, "charter flights for emergency medical treatment," and "special humanitarian charter flights."

July 19, 2006
The first specialized cross-strait charter plane flies from Taipei to Shanghai on the evening of July 19, 2006.

July 31, 2006
A Council Meeting of the MAC issues a report on revisions to Article 9 of the "Act Governing Relations between Peoples of the Taiwan Area and the Mainland Area," regarding the permission of civil servants with 10th grade of Selected Appointment Rank and below as well as police officers with Grade 4 ranking and below, whose duties and responsibilities do not involve confidential matters on national security, to travel to China. According to the report, the matter is now awaiting a decision by the Executive Yuan on the date for implementing the revisions. The revisions will be promulgated and implemented by the Ministry of the Interior after the ministry and other related agencies formulate the operational directions.

July 31, 2006
A Council Meeting of the MAC approves revisions proposed by the Ministry of the Interior to Article 6 of the "Fee Collection Standards for Entry and Exit Permits Issued to People of the Mainland Area, Hong Kong and Macao." The revision restores a measure waiving the permit fee.

August 2, 2006
The KMT-affiliated National Policy Foundation announces that it will hold a "Cross-Strait Forum on Agricultural Cooperation" in Taipei on October 13 to 18, 2006
and that it will invite China's Taiwan Affairs Office Director Chen Yunlin to come to Taiwan to attend the forum.

August 2, 2006
A spokesperson for the Taiwan Affairs Office states during a press interview that the Chinese Nationalist Party (KMT) and the Chinese Communist Party have reached a consensus to jointly hold a forum in China and Taiwan on a rotational basis. The two parties have decided to hold the "Cross-Strait Forum on Agricultural Cooperation" in Taipei this time.

August 2, 2006
According to statistics compiled by China's Ministry of Commerce, China approved 1,743 investments from Taiwan in the first six months of 2006. The contracted value of the approved investments was US$5.52 billion, while the actual invested amount was US$1.034 billion. Indirect cross-strait trade during the period amounted to US$50.2 billion, with Chinese exports to Taiwan reaching US$9.57 and imports from Taiwan amounting to US$40.63 billion.

August 2, 2006
Between January 2001 and June 2006, a total of 1,539,600 passengers have been transported via the direct shipping route between coastal regions in Fujian and the Taiwan islands of Kinmen, Matsu and Penghu. A total of 12,831 two-way boat voyages were made between both sides in the same period.

August 3, 2006
MAC Vice Chairman Johnnason Liu indicates that Taiwan Affairs Office Director Chen Yunlin's planned visit to Taiwan will involve exchanges between high-level government officials across the Strait. The Taiwanese government will consider the case in accordance with the law under the principles of "prior discussions" and "mutual respect."

August 4, 2006
MAC Chairman Jaushieh Joseph Wu indicates that if Chen Yunlin is to visit Taiwan, his itinerary will need to be discussed in advance and both sides must follow the principle of mutual respect. He says that on the matter of Chen's visit, Premier Su Tseng-chang has recently stated that cross-strait interactions should be based on mutual benefit, reciprocity, and mutual respect. If Chen plans to push China's united front tactics, he needn't bother to come.

August 6, 2006
At an emergency press conference, the Ministry of Foreign Affairs announces that it was learned that since Chad had secretly planned to establish diplomatic relations with China, Taiwan officially severed ties with the central African nation. Premier Su was therefore forced to cancel his planned visit to Chad.

August 21, 2006
The Chinese Nationalist Party (KMT) officially submits an application to the Immigration Office of the National Police Agency under the Ministry of the Interior requesting permission for a 66-person Chinese delegation led by Taiwan Affairs Office Director Chen Yunlin to visit Taiwan to attend the "Cross-Strait Forum on Agricultural Cooperation."

August 23, 2006
Premier Su Tseng-chang states that at temporary shelters ashore as well as in the original boats used as shelters and "ocean houseboats" at various ports in Taiwan, Chinese sailors frequently take flight and confront the authorities by making trouble. Their behavior has affected public order and led to sea disasters. Management mechanisms should therefore be strengthened.

August 27, 2006
The Taiwan Strait Tourism Association (TSTA) holds a donor conference in Taipei. Director-General Hsu Wen-sheng of the Tourism Bureau under the Ministry of Transportation and Communications was elected as chairman of the board (with an external title of "President"). He will be commissioned by the government to conduct negotiations with China on matters involving the opening up of tourism in Taiwan for Chinese tourists.

August 29, 2006
Regarding Chinese media reports expressing the views of the "Spokesperson for the Association for Relations Across the Taiwan Strait" (ARATS) on the application filed by Taiwan Affairs Office Director Chen Yunlin for his visit to Taiwan, the MAC entrusts the Straits Exchange Foundation to send another letter to the ARATS to confirm the true views of the Chinese authorities and to ask Beijing once more to directly send a representative to Taiwan for discussions.

August 29, 2006
The International Trade Commission under the Ministry of Economic Affairs, makes a final injury determination in a case involving provisional anti-dumping duties and countervailing duties levied on toweling products imported from China.

September 1, 2006
In response to the application filed by Taiwan Affairs Office Director Chen Yunlin for a visit to Taiwan, the MAC instructs the Straits Exchange Foundation (SEF) for the third time to write the Association for Relations across the Taiwan Strait (ARATS), requesting it to relay Taiwan's message to China's relevant authorities as soon as possible. It is hoped that the ARATS will inform Taiwan of the true opinions of the Chinese authorities in a reply letter.

September 2, 2006
Taiwan Affairs Office Spokesperson Li Weiyi notes in an interview that if Taiwan agrees to allow Chen Yunlin to visit Taiwan, both sides can begin discussions under appropriate titles. There is no need to get entangled with the formality of a reply letter.

September 5, 2006
Regarding the application filed by China's Taiwan Affairs Office Director Chen Yunlin and other Chinese officials for their visit to Taiwan, the MAC stresses that Taiwan has thrice entrusted the Straits Exchange Foundation to write the Association for Relations across the Taiwan Strait, requesting it to relay Taiwan's position and opinions to the Chinese authorities. However, Taiwan has not yet received any reply letter from the Chinese authorities.

September 7, 2006
Regarding the application filed by China's Taiwan Affairs Office Director Chen Yunlin and other Chinese officials for their visit to Taiwan, the Immigration Office of the National Police Agency under Ministry of the Interior reviews the case and decides to reject the application. MAC Vice Chairman Johnnason Liu states that China intentionally evaded communicating and negotiating with the Taiwanese government in advance. China's act has shown that such an application filed by Chen Yulin bears no positive significance to the improvement of cross-strait relations and the promotion of regional peace and stability.

September 8, 2006
With regard to China's promotion of the opening up of tourism in Taiwan for Chinese tourists and the weekend charter flights under the principles of simultaneous negotiations and simultaneous implementation, MAC Vice Chairman Johnnason Liu states that both sides have continued to communicate with each other through the contact windows authorized respectively by them. At present, we have not received any information on this matter through official channels. Vice Chairman Liu also notes that, as for the opening up of new routes, Taiwan's consistent position is that we will not exclude the possibility of making proper arrangements through formal negotiations.

September 13, 2006
The MAC indicates that an application for an emergency medical charter flight was submitted to the Immigration Office on September 12, 2006.

September 14, 2006
The MAC states that with regard to the application filed by Chinese performance artists like Ge You and Zhang Ziyi for promotion activities on movies and dramas, the authorities responsible for related affairs have agreed to allow them to visit Taiwan for related activities in accordance with the latest regulations enacted by the Ministry of the Interior.

September 19, 2006
The Ministry of Finance announces that it will impose anti-dumping duties on towel imports from China for a period of five years, starting on June 1, 2006.

September 20, 2006
The Second Cross-Strait Book Fair was held at the Taipei World Trade Center from September 20 to 24, 2006.

September 22, 2006
A public opinion survey commissioned by the MAC indicates that the overwhelming majority of the public (75.8 percent) approves the government's active promotion of Taiwan's bid to join the United Nations; and 70.5 percent of the public approve applying for UN membership under the name of "Taiwan." The results of the public opinion survey also show that 66.3 percent of the respondents agree that the government should continue to develop Taiwan's diplomatic relations with other countries.

September 28, 2006
The MAC's Chinese Development Fund (CDF) kicks off the 2007 "Postage Subsidy for Free Magazine Subscriptions in the Mainland Area" activity. It also begins to accept applications from magazine publishers.

September 29, 2006
MAC Vice Chairman Johnnason Liu states that the Taiwan Strait Tourism Association (TSTA) will come into legal effect after the relevant procedures have been completed. The next step will depend on follow-up communication between both sides. Taiwan hopes that concrete progress on opening up tourism in Taiwan for Chinese tourists will be achieved before the end of 2006.

October 2, 2006
The Straits Exchange Foundation holds a ceremony to inaugurate its "Mainland Spouse Service Hotline." At the ceremony, Premier Su Tseng-chang states that the hotline will integrate limited government resources and unlimited civilian resources to help resolve the problems faced by mainland Chinese spouses in Taiwan.

October 2, 2006
Five members of a Chinese tour group visiting Taiwan are killed in a traffic accident that also claims the life of one Taiwanese tour guide and injures five. MAC Chairman Jaushieh Joseph Wu states that upon learning of the accident, the MAC immediately notified Premier Su Tseng-chang and related agencies, including the MAC itself, the Straits Exchange Foundation, as well as the Ministry of Transportation and Communications, have dispatched personnel to handle the situation.

October 3, 2006
The MAC issues a press release expressing deep regret over the unfortunate traffic accident resulting in the deaths and injuries to members of a tour group from China. The MAC also conveyed its heartfelt concern and condolences to the injured tourists and the families of those killed and injured. The MAC emphasizes that the related agencies will provide the best possible medical care to the injured and will take full responsibility for assisting with follow-up matters related to the accident.

October 4, 2006
At a dinner banquet of the 2006 Mid-Autumn Festival gathering held for Taiwanese businesspeople, Straits Exchange Foundation (SEF) Chairman Chang Chun-hsiung indicates that in the coming new year the SEF will focus its work on encouraging overseas Taiwanese businesspeople to invest in Taiwan with a view to showing support for the "Big Investment" policy concept of Premier Su Tseng-chang.

October 4, 2006
Twenty-six Chinese family members and related personnel arrive in Taiwan to assist with matters following a fatal traffic accident on October 2, 2006
in Nantou County.

October 9, 2006
A total of 40 Chinese companies participate in the Taipei International Electronics Autumn Show (Taitronics Autumn) and the jointly held Cross-strait Electronics Autumn Show.

October 12, 2006
MAC Chairman Jaushieh Joseph Wu indicates that the Taiwan Strait Tourism Association (TSTA) is officially operational. He hopes that China can promptly conduct negotiations with Taiwan so that the full opening up of tourism in Taiwan for Chinese tourists can be realized at the soonest possible time.

October 13, 2006
MAC Chairman Jaushieh Joseph Wu states that the MAC is concerned over not only the persecution of Falun Gong in China, but also several recent cases of human rights persecution in China, including the Chinese police's killing of Tibetans seeking to escape China's tyrannical rule, the arrest of human rights lawyers, and the persecution of family churches and Muslims. Taiwan hopes to join with the world in promoting and protecting the development of human rights in China so that human rights in China can reach the level of civilized societies.

October 13, 2006
The Taiwan Strait Tourism Association (TSTA) officially holds an unveiling ceremony today. TSTA chairman Hsu Wen-sheng expresses hope that both sides can soon reach a consensus so that the opening up of tourism in Taiwan for Chinese tourists can be realized at the soonest possible time.

October 15, 2006
The Council of Agriculture (COA) states that it is happy to see civilian organizations expand in the Chinese market.

October 16, 2006
"Beijing Week" kicks off in Taipei during the Cross-Strait Cities Art Festival.

October 18, 2006
The Department of Health (DOH) issues a press release stating that it will enhance control measures to better manage the import of Chinese mitten crabs.

October 20, 2006
During a Legislative Yuan interpellation, Premier Su Tseng-chang emphasizes that "Cross-strait exchanges cannot come at a loss to national dignity." The lack of progress in cross-strait negotiations is "the problem of the other side," and the key to this problem is China's attitude.

November 1, 2006
Over 500 representatives of China's travel industry arrive in Taiwan to attend the Taipei Travel Fair.

November 2, 2006
MAC Chairman Jaushieh Joseph Wu states that, the Taiwan Strait Tourism Association (TSTA) has completed negotiations with the Cross-Strait Tourism Exchange Association (CTEA) on technical issues concerning the opening up of tourism in Taiwan for Chinese tourists.

November 3, 2006
The Immigration Office of the National Police Agency under the Ministry of the Interior revises the "Notice for the Submission of Documents by Persons of the Mainland Area when Applying for Entry into the Taiwan Area: Mainland Spouses Visiting Taiwan for Family Reunions." The revised notice will come into effect on December 1, 2006.

November 5, 2006
Five Taiwanese examinees participated for the first time in China's 2006 Customs Declarer qualification examination in the Xiamen examination district.

November 6, 2006
The first "Cross-strait Legal Forum" opens. The first cross-strait "ministerial-level summit meeting," it was attended by more than 10 ex-ministers from both sides across the Strait.

November 7, 2006
The first "Cross-Strait Brand Forum" opens in Xiamen.

November 8, 2006
The Ministry of the Interior issues a press release indicating that the children of Chinese employees dispatched by a transnational enterprise to work in Taiwan are allowed to enroll in school and obtain student status in Taiwan.

November 8, 2006
The Bureau of National Health Insurance formulates the "Principles for Handling the Qualification of Mainland Persons who Have Participated in the National Health Insurance Program to Re-join the Program Upon Exit and Re-entry to Taiwan." The principles come into effect on January 1, 2007.

November 8, 2006
The Coast Guard Administration holds a Kinmen Area Services Symposium. The general public attending the symposium request that Coast Guard units, upon obtaining reports about Chinese fishermen fishing in Taiwan's sea territory, immediately dispatch personnel to handle the matter in a timely manner.

November 14, 2006
The Ministry of Economic Affairs forms a "Task Force for Encouraging Overseas Taiwanese Businessmen to Return to Taiwan for Investments." The aim of the task force is to make overall plan and integrate administrative resources possessed by various government ministries and councils. It will serve as a coordination window for providing highly efficient services, including providing investment information to Taiwanese enterprises, developing investment opportunities, removing investment obstacles, and others.

November 21, 2006
The International Trade Commission, Ministry of Economic Affairs makes an initial determination of industry damages in the "Application filed by Taiwan Footwear Manufacturers Association (TFMA), Taipei County Shoes Chamber of Commerce, and Tainan City Leather Goods Mfg. Chamber of Commerce for the Levying of Anti-dumping Duties and Provisional Anti-dumping Duties on Shoes Imported from China."

November 27, 2006
In a report on the "Role and Function of Taiwan's Civilian Organizations in Cross-Strait Cultural and Educational Exchanges," the MAC indicates that the role played by civilian organizations in promoting cross-strait cultural and educational exchanges is certainly conducive to raising Chinese professionals' understanding of the social development and the vitality of Taiwan's civilian sectors. Moreover, such a role is also conducive to exerting a subtle influence on the thinking of Chinese professionals.

November 28, 2006
Straits Exchange Foundation (SEF) Vice Secretary-General Chang Shu-ti states in an interview that the SEF has contacted the family members of the two Taiwanese residents Cheng Fa-wang and his wife Song Hsiao-tan, both of whom were murdered in Fujian Province. The SEF has assisted Cheng's family members in arranging the related documentation. The Taiwanese Businessmen's Association in Fuzhou has provided assistance with funeral matters.

November 28, 2006
The Department of Taiwan, Hong Kong, and Macao Affairs of the Chinese Ministry of Commerce indicates that trade between China and Taiwan amounted to US$88.03 billion in the first 10 months of 2006.

December 5, 2006
The Cabinet-level Financial Supervisory Commission (FSC) states that as of the third quarter of 2006, a total of 840 Taiwanese companies had invested in China, an increase of 28 companies as compared with the end of 2005; and accumulated investment totaled NT$0.6005 trillion, an increase of NT$68.8 billion from the end of 2005.

December 7, 2006
The National Tax Administration of Northern Taiwan Province under the Ministry of Finance indicates that commercial organizations need to gain permission from the MAC before making donations to the Mainland Area, and such donations must be made through educational, cultural, public welfare and charity agencies or organizations. Donations that are not approved or that are made directly to the Mainland Area cannot be listed as expenses or losses.

December 13, 2006
In an interview with Voice of America, MAC Chairman Jaushieh Joseph Wu suggests that the Chinese government engage in direct dialogue with the Taiwanese government, and that political issues will be not excluded from cross-strait dialogues.

December 14, 2006
In a speech delivered at the "Seminar on China's Changing Investment Environment in 2006 and Taiwanese Businesspeople's Future Business Strategies," MAC Chairman Jaushieh Joseph Wu indicates that on the issue of opening up tourism in Taiwan for Chinese tourists, the respective contact windows of both sides of the Taiwan Strait have held several technical discussions. There is a good opportunity for both sides to send formal representatives to sit down at the negotiation table to hold talks and realize the comprehensive opening up of tourism in Taiwan for Chinese tourists.

December 15, 2006
At a regular press briefing, MAC Vice Chairman Johnnason Liu states that, on the issue of passenger qualifications for Lunar New Year charter flights, the passengers allowed to take such flights in the past were basically Taiwanese businesspeople returning home to Taiwan. Therefore, Taiwan's position is that both sides can discuss the matter through related mechanisms after the charter flights have been implemented. So there has been no such discussion yet on this matter.

December 15, 2006
The International Trade Commission of the Ministry of Economic Affairs makes an affirmative preliminary determination of substantive damage caused to the domestic industry in the "Taiwan Paper Industry Association's Application for the Imposition of Antidumping Duties and Provisional Countervailing Duties in the Case Concerning Uncoated Printing and Writing Paper from Japan, China and Indonesia."

December 15, 2006
The Cross-Strait Youth Forum jointly held by the Communist Youth League of China and the Chinese Nationalist Party's (KMT) Youth Corps opens in Beijing.

December 20, 2006
In talks with the Chinese Nationalist Party (KMT) legislative caucus, MAC Chief Secretary Jan Jyh-horng indicates that the MAC agrees in principle that cross-strait charter flights be implemented by further reducing related restrictions on flight routes. However, China has not even agreed to implement emergency medical charter flights, saying that negotiations are necessary before a decision can be made. The MAC agrees to allow the cross-strait charter flights to fly through a more direct route. It is China's unwillingness to hold negotiations that is impeding progress.

December 20, 2006
The Investment Commission of the Ministry of Economic Affairs indicates in a press release that in November 2006 approval was granted for 104 China-bound investments with a total value of US$510.974 million. In the first 11 months of 2006, there were 983 approved China-bound investments with a total value of US$6,401,005,000, down 17.26% and up 13.80%, respectively, from the same period of 2005.

December 22, 2006
The MAC announces the results of its most recent public opinion survey. The results indicate that on the issue of unification vs. independence, the overwhelming majority of the public (85.5%) continue to support maintaining the status quo. Moreover, regarding China's stance on developing cross-strait relations under the "one country, two systems" formula, the vast majority (73%) of the public disapprove. The percentages of the public believing that the Chinese authorities are unfriendly to the Taiwanese government and people remain high at 59.5% and 41.7%, respectively.

December 23, 2006
During an inspection visit to Matsu, Premier Su Tseng-chang indicates that the MAC and the Tourism Bureau of the Ministry of Transportation and Communications should assess the possibility of easing restrictions on the allowable size of Chinese tourist groups visiting Kinmen and Matsu via the "Mini-Three-Links" from the present 10 to 25 persons to 5 to 40 persons.

December 23, 2006
Janice Seh-jen Lai, director-general of the Tourism Bureau of the Ministry of Transportation and Communications, states that it will not be possible to open up tourism in Taiwan for Chinese tourists by at the end of 2006 as scheduled. The Tourism Bureau and the MAC will further accelerate promotion of the open-door policy.

December 25, 2006
The MAC issues a press release stating that, in order to resolve issues on cross-strait intellectual property rights, the MAC and Intellectual Property Office of the Ministry of Economic Affairs sent representatives to China in April and May 2006, respectively, for exchanges and achieved initial communication and understanding with China on related subjects.

December 26, 2006
The Ministry of the Interior issues a press release stating that it has recently revised the annual quota for Chinese residents residing in Taiwan as dependents to 12,000 persons. The revision was made in consideration of the steady decline in the number of cross-strait marriages since the adoption of an interview system, and as a suitable measure for maintaining Taiwan's population at a rational level. The new quota is 5,000 persons higher than that under the previous system.

December 26, 2006
Janice Seh-jen Lai, director-general of the Tourism Bureau of the Ministry of Transportation and Communications, announces that from January 1, 2007, the government would strictly enforce a measure requiring members of Chinese tour groups to spend a minimum average of US$80 (about NT$2,600) per person per day during their visits in Taiwan. She also says that currently there is no timetable for when Category-1 Chinese residents will be allowed to visit Taiwan for tourism purposes.

December 27, 2006
The Association for Relations Across the Taiwan Strait (ARATS) sends a letter to the Straits Exchange Foundation (SEF) conveying the condolences of the Chinese side to residents in southern Taiwan affected by an earthquake disaster on December 26, 2006.

December 28, 2006
Wang Zhifa, deputy director of the China National Tourism Administration, states that civilian tourism organizations on both sides of the Taiwan Strait have held two rounds of technical discussions on the issue of opening up tourism in Taiwan for Chinese residents. At present, there is still a need for further talks on establishing business relations between tourism enterprises of both sides, formulating tourism routes and measures to guarantee quality transportation, protecting rights and interests of tourists, and guaranteeing tourism safety.

December 30, 2006
Dai Xiaofeng, director-general of the Exchange Bureau of the Taiwan Affairs Office of the State Council, states in an interview with Xinhua News Agency that, according to statistics, Taiwan residents made over 3.743 million visits to China in the first 10 months of 2006, an increase of 6.2% over the same period in 2005. The figure for the full year is anticipated to exceed 4.4 million. Over 168,000 Chinese residents visited Taiwan in the first ten months of 2006, up 26.47% from the same period of 2005; and the full year figure is expected to surpass 200,000 visitors. Of the total number of Chinese visitors, 32,636 were invited to visit Taiwan for 5,760 exchange events, increases of 36.22% and 27.06%, respectively, over the same period of 2005.

December 31, 2006
Premier Su Tseng-chang indicates that after Taiwan lifts the restrictions on China-bound investments in producing wafers using Taiwan's 0.18-micron process technology, it is hoped that Taiwanese enterprises will be able to replace obsolete equipment with new equipment, increase their investments in Taiwan, and root their operations in Taiwan. He also notes that at present the government is not considering to ease the 40% ceiling on China-bound investments.

December 31, 2006
Border inspection agencies in Xiamen will formally introduce a system on January 1, 2007, that will exempt Taiwan residents traveling between Xiamen and Kinmen from filling out an entry registration card. Under the new system, all Chinese citizens, including Taiwan residents, Chinese residents and overseas Chinese, will not need to fill out the entry registration card when entering China via the Xiamen-Kinmen route.

December 31, 2006
The Beijing-based Cross-Strait Tourism Association (CTEA) sends a letter inviting the Taipei-based Taiwan Strait Tourism Association (TSTA) to hold the third round of technical discussions.