US envoy calls for expanded Taiwan-China links

US envoy calls for expanded Taiwan-China links

	Published : Wed, 21 Mar 2007 08:56 By : Agencies Print this Story

TAIPEI (XFN-ASIA) - The United States has urged Taiwan to expand economic links with China if it is to be a regional business hub, saying its national interests would not be endangered by closer ties.

In an address to the American Chamber of Commerce (Amcham), Stephen Young, director of the American Institute in Taiwan (AIT), hailed recent progress made in cross-Strait links.

Taiwan's further opening of its economic relationship with China 'is critical if this island is to become a regional and global center,' he said late yesterday.

'Amcham members have benefitted from measures that increased the number of mainland employees that can travel to Taiwan for business meetings,' Young said, referring to charter flights made during four major holidays.

'However, more needs to be done ... We look forward to progress soon on expanding cross-Strait charter flights and further opening of Taiwan to tourists from the mainland,' he added.

Direct transportation, commerce and postal services between Taiwan and China, better known as the 'three links' here -- have been cut since Taipei and Beijing split in 1949 at the end of a civil war.

Cargo and passenger services do exist but they are made through third parties, mainly Hong Kong.

Calls for the resumption of direct links have been mounting given the ever closer economic ties but Taiwan says government-level negotiations -- which would imply Beijing recognition -- are required before the ban can be lifted.

Taiwan also fears its security could be compromised in light of China's military build-up.

The US switched its diplomatic recognition from Taipei to Beijing in 1979 and has since maintained an official presence through the AIT.

'The United States understands and appreciates concerns here that Taiwan's economy may be vulnerable because of its economic exposure to mainland China. However, I believe that kind of influence runs both ways,' Young said.

Chinese companies and executives would be exposed to higher standards of corporate governance and best practices, he said.

'In addition, closer economic relations, especially with the influx of more PRC (People's Republic of China) tourists, will hold the potent example of Taiwan's democracy up for the people of China.'

He said that as long as Taiwan retains its ability to defend itself there is no need for Taiwan to fear closer ties with its huge and rapidly growing neighbor.

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