Cash restraints 'will not affect Taiwan links'
THE austerity drive set by Beijing will not affect Fujian's plan of forging a closer economic alliance with Taiwan, the provincial Communist Party Secretary Jia Qinglin said.
Premier Li Peng stated in his Government Work Report that the economy would grow at a moderate eight to nine per cent this year - much lower than the 11.8 per cent increase registered last year.
In order to keep to the target, China would follow a 'relatively stringent' financial policy and maintain a tight grip over the growth of fixed-asset investment.
But Mr Jia said that would not affect exchanges between Fujian and Taiwan.
'[Funds] for these key projects, which are good for cross-strait exchanges, are guaranteed,' he said.
'What are affected are non-essential projects, but funds earmarked for key projects will still be provided.' Mr Jia said Fujian had benefited from the new tax-sharing deal struck with Beijing last year and the province had become richer because of extra tax revenue. Nevertheless, Mr Jia made clear that as far as cross-strait relations were concerned, Fujian could only follow the policies laid down by Beijing.
The eight-point principles announced by President Jiang Zemin on Lunar New Year's Eve were China's bottom line in handling the Taiwan problem, said Mr Jia.
Mr Jiang, also the Communist Party chief, called on Taiwan authorities last January to drop their animosity towards the mainland and work towards reunification.
Taiwan premier Lian Chen responded last month by saying his Government believed that business and trade should remain the core in cross-strait relations.
The fact that there was little room for Fujian to manoeuvre on the Taiwan question was evident yesterday when Mr Jia was asked what new plans his province had in response to Mr Jiang's call.
Mr Jia was only able to offer a three-step economic strategy which he helped prepare when he was governor three years ago.
Through its implementation, Mr Jia said economic exchanges between Taiwan and Fujian would expand and that could help speed up reunification.
The Fujian Secretary also appeared to be unaware of a recent suggestion by Taipei to study the feasibility of turning part of its southern Kaohsiung harbour into an 'offshore transshipment centre' to handle direct sea transport with the mainland.
'It is our position that we favour direct links with Taiwan,' he said. 'Any suggestions beneficial to cross-strait exchanges are welcome.'
