Friday, May 14, 2010

Economy high on President Ma's midterm agenda

Taipei, May 14 (CNA) President Ma Ying-jeou said Friday in a midterm assessment of his presidency that his efforts to reduce tensions across the Taiwan Strait have paid off and that improved Taiwan-China ties will lead to a better economic future for Taiwan.

If Taiwan can sign an economic cooperation framework agreement (ECFA) with China to relax cross-strait trade regulations and reduce tariffs, and complete an industry upgrade to build an innovation-based economy, a "Golden Decade" of sustained development would be a realistic goal, he said.

He reiterated his goal of sealing the deal with China before July and said he will head a special task force to seek free trade agreements (FTAs) with major economies, especially the European Union (EU), Japan and the U.S., after the ECFA is completed.

Ma said he believes China understands the fact that Taiwan is entitled to sign FTAs with other World Trade Organization (WTO) members and would not interfere in Taiwan's attempts to do so.

The ruling Kuomintang's (KMT's) policy toward China is a part of its carefully thought out global strategy, said the president, who is also chairman of the KMT, in an interview with the Central News Agency in the run up to the May 20 midpoint of his current 4-year term.

"China is an integral part of our internationalization and globalization strategy, " but it was not part of the opposition Democratic Progressive Party's (DPP's) global vision, said Ma, who has adopted an "economy first, politics second" approach in dealing with China.

"We should cherish the fact that the two sides (the KMT and the Chinese Communist Party) , which have fought each other for decades, are finally able to work on building mutual trust, " the president said.

However, Ma said, the time is not ripe for him to meet with Chinese President Hu Jintao as "neither side sees any urgency for this." Furthermore, Taiwan has no plans to engage in political and military talks with China at this time, he said.

On the issue of the continued military threat from China, the president said it is an "uncomfortable picture" for him to see on one hand reduced cross-strait tensions and improved economic relations, and on the other hand, more than 1,000 Chinese missiles aimed at Taiwan.

China will face increased pressure from the international community if it does not remove the missiles, especially after the ECFA is signed, he said.

Meanwhile, Ma promised, Taiwan will not engage in an arms race with China, but will still pursue U.S. weapons procurement in order to maintain its defense capability and its confidence when dealing with China.

The U.S. is reviewing Taiwan's request to purchase submarines and F-16 C/D fighters, and consultations are in progress on a new arms procurement list that will be based on an innovative and asymmetric strategy, he added.

A strong national defense capability and economic security will give Taiwan the confidence to stride forward and to make up for "the lost eight years" of the previous administration, he said.

He pledged that the economy will be high on the agenda for the remainder of his current term, with job creation as the top priority.

He noted that the Directorate-General of Budget, Accounting and Statistics has upgraded its forecast for the growth of Taiwan's 2010 gross domestic product (GDP) , from 3.39 percent to 4.72. The International Monetary Fund has also raised its forecast for Taiwan's GDP growth rate to 6.5 percent, he added.

Furthermore, the forecasts by most foreign institutions are higher than domestic estimates, which is an indication that "foreigners are even more optimistic about Taiwan's economy than we are," the president said.

As part of its economic goals, the government will recruit more economic and financial experts to the Cabinet in the impending reshuffle to help Taiwan achieve "its new place on the Asian economic map," he said.

Regarding government reform, Ma said that he has no intentions to amend the Constitution during his term because the executive and legislative branches are both functioning well.

He described his working relationship with Premier Wu Den-yih as "seamless, " which he said means that "the dual executive system is functioning well." (By Chris Wang) enditem /pc