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- The MOTC is now engaging in communication regarding the issue of reducing ticket prices for cross-strait direct charter flights
- The agreements signed at the third Chiang-Chen Talks did not involve the amendments to the laws and they will be carried out on the foundation of existing laws
- Because “Cross-Strait Forum” activities continue to be guided by the government, it is not appropriate to advertise such activities in Taiwan.
- When a Mainland enterprise invests in Taiwan directly or via a third country, the relevant laws governing Mainland capital investments in Taiwan shall apply
- The “Cross-Strait Joint Crime-Fighting and Judicial Mutual Assistance Agreement” abides by common international principles
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MAC Regular Press Briefing
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Briefer : Johnnason Liu, Deputy Minister
Date : April 30, 2009
Location : Taipei |
STATEMENTS AND ANNOUNCEMENTS
■The Education and Culture Committee of the Legislative Yuan today began its review of the amendments to the University Act and Junior College Act that involve Mainland students coming to Taiwan to study. The progress of this review will affect the review of draft amendments that will take place next Monday in the Legislative Yuan’s joint review committee to be held for deliberating on the Act Governing Relations Between People of the Taiwan Area and the Mainland Area. We hope that everyone will help us to express concern about the progress of the Education and Culture Committee's review.
■Today the MAC is calling a Consultative Committee Meeting to hear the views of the members of the said committee on the third Chiang-Chen Talks. When the relevant material has been put together and is ready we will make it available to every one for reference.
QUESTIONS & ANSWERS
The MOTC is now engaging in communication regarding the issue of reducing ticket prices for cross-strait direct charter flights
QUESTION: With regard to the results of the most recent Chiang-Chen Talks, it was stated that direct charter flights will “optimize flight paths and raise transport efficiency,” and “will also help airlines increase their revenues, reduce their costs, and enhance their operating efficiency.” But all these benefits just seem to be lining the pockets of the air transport companies. Since the holding of the Second Chiang-Chen Talks, the MAC has all along stressed that direct charter flights help lower costs, but those lowered costs have not been reflected in ticket prices. After the increase in flights this time, will the government be able to use administrative means to force operators to lower their ticket prices?
DEPUTY MINISTER LIU: The fundamental purpose of signing various kinds of agreements between both sides across the Strait is that we hope to provide advantages and benefits to the general public. When it comes to the suggestions offered by various sectors regarding the ticket prices for charter flights, we already passed on related opinions to the Ministry of Transportation and Communications, and the MOTC is currently gaining understanding on this and engaging in communications. The airline companies on both sides should take more responsibility for addressing the ticket price issue, so that the signing of such agreements can bring benefits to the public. Only in this way do cross-strait negotiations have any economic value for us.
The agreements signed at the third Chiang-Chen Talks did not involve the amendment to the laws and they will be carried out on the foundation of existing laws
QUESTION: Can you please tell us whether the agreements signed and the consensus achieved at the third round of the Chiang-Chen Talks involve the amendments to the laws, including opening up of Taiwan for Mainland investments and a follow-up signing of an MOU on financial supervision?
DEPUTY MINISTER LIU:
■ As for Mainland investments in Taiwan, the Act Governing Relations Between People of the Taiwan Area and the Mainland Area (thereafter referred to as the Act) already contains the stipulations regarding authorization. As such, the Ministry of Economic Affairs is currently formulating relevant regulations governing the approval of investments. With regard to cross-strait financial supervision, in accordance with the Cross-Strait Financial Cooperation Agreement, this should proceed in accordance with the existing laws of both sides. As for currency settlements, Article 38 of the Act is the source of law on that. In addition. with regard to market access and business development for cross-strait financial institutions, Articles 35, 36, 40-1 and 73 of the Act provide the legal basis for the handling of related matters by relevant competent authorities like the Financial Supervisory Commission. Therefore, in accordance with the opinion of related ministries, none of the agreements signed at the third Chiang-Chen Talks involves the amendments to the laws.
■ This time, it is clearly stipulated in most of the agreements that they will be carried out on the basis of the existing laws and regulations of both sides. For example, in the Cross-Strait Joint Crime-Fighting and Judicial Mutual Assistance Agreement this is explicitly stipulated. There might be some room for adjustment in the future as far as execution is concerned, but, definitely, the laws and regulations operative at the time will be applied and serve as the basis. If necessary, either side can revise their own laws. But until this is done, the domestic laws and regulations of each side constitute the basis.
Because “Cross-Strait Forum” activities continue to be guided by the Mainland authorities, it is not appropriate to advertise such activities in Taiwan
QUESTION: When it comes to the three agreements signed at the Chiang-Chen Talks, prior to the completion of the administrative procedures stipulated by the government, it came out that the “Cross-Strait Forum” placed an advertisement in the Taiwan media. What was the MAC's response? How will this be handled?
DEPUTY MINISTER LIU:
■ Laws and regulations all have effective dates in terms of their application. If there is an individual case that occurs before the effective date, then the executive agency dealing with the case will handle it according to the existing laws and regulations.
■ With regard to the advertisements regulated by Article 34 of the said Act, the main consideration lies in the fact that once mainland Chinese goods, labor, and services industry have been allowed to enter the Taiwan Area, there is a need to have their advertisements broadcast or published for the purpose of sale, so that commercial benefits can be produced. Thus, the management of the advertisements and activities will be handled according to the ordinary domestic advertising mechanism, and in addition we hope this could be separated from politics.
■ The “Cross-Strait Forum” is organized with the Mainland authorities taking the leading role and during the forum period multiple forms of activities—including the artistic activities, exhibitions, business and academic activities—will be held. As such, the advertisements placed in the Taiwan media by the “Cross-Strait Forum” do not fall within the scope permitted under Article 34 of the Act Governing Relations Between People of the Taiwan Area and the Mainland Area. Therefore, we have formally notified the commissioned advertising agency that it is inappropriate to advertise such activities in the Taiwan Area.
When a Mainland enterprise invests in Taiwan directly or via a third country, the relevant laws governing Mainland investments in Taiwan shall apply
QUESTION: United Microelectronics Corporation (UMC) has announced it is acquiring the mainland company HeJian Technology Co., Ltd. and China Mobile has announced it will indirectly through a Taiwan subsidiary become a shareholder in Far East Tone Telecommunications. Could you please tell us, prior to the formal implementation of permit regulations governing Mainland capital investments in Taiwan, how will the government deal with similar cases?
DEPUTY MINISTER LIU:
■ The third Chiang-Chen Talks reached a consensus on Mainland capital investments in Taiwan. The competent departments of both sides will set up an appropriate communication mechanism and will jointly push forward to have Mainland enterprises come and invest in Taiwan.
■ To be in line with the above consensus, the relevant authorities have completed the initial planning for laws and regulations concerning Mainland capital investments in Taiwan, the items of deregulation and the accompanying measures. Once final decisions have been made through negotiations, this all can be made public and will be implemented.
■ As for China Mobile becoming a 12% shareholder in Far East Tone Telecommunications, this is contractual behavior between private enterprises. When this transfer of equity takes pace it will have to be done according to the relevant laws and regulations.
■ When a Mainland enterprise invests in Taiwan directly or via a third country, its investments will be governed by the relevant laws concerning Mainland capital investments in Taiwan. If this falls within the scope of Mainland investments in Taiwanese businesses, it must wait for the promulgation of the “Permit Regulations Governing the Investment in Taiwan by People from the Mainland Area” enacted by the MOEA; only if it is a telecommunications investment in a category opened up for Mainland capital investments, an application may be submitted. If it is an equity investment, then the “Regulations Governing Securities Investment and Futures Trading in Taiwan by Mainland China Area Investors” formulated by the Financial Supervisory Commission and relevant laws shall be applied.
■ The agreements signed at the third Chiang-Chen Talks have not yet come into effect. Once the relevant laws and regulations do come into effect, the newly-amended laws and regulations shall apply mutatis mutandis to all individual cases. The executive agencies will then face and deal with all relevant issues.
The “Cross-Strait Joint Crime-Fighting and Judicial Mutual Assistance Agreement” abides by common international principles
■ With regard to recent questioning by the media that the “Cross-Strait Joint Crime-Fighting and Judicial Mutual Assistance Agreement” might lead mainland China to use this to demand the repatriation of Taiwan independence or Falun Gong figures, we want to state very clearly that the fundamental cross-strait consensus that existed when both sides were negotiating the “Cross-Strait Joint Crime-Fighting and Judicial Mutual Assistance Agreement” was to abide by common international principles. The first principle was that “political, military and religious prisoners” were not subject to this agreement. Another principle was that citizens of the other side would not be repatriated. For any crime committed in mainland China by a citizen from our side, should that person be in Taiwan when the case surfaces, then the person will be dealt with according to Taiwan’s laws. Mainland China may pursue a local judicial proceeding by some other means but cannot demand the repatriation of this person via the “Cross-Strait Joint Crime-Fighting and Judicial Mutual Assistance Agreement.”