Cabinet outlines measures on crises in Middle East, N. Korea

Taipei, March 14, 2003 (CENS)--The imminent U.S.-led military attack on Iraq could have a positive effect on Taiwan economy if the war can quickly wind up within three months, according to an evaluation report drawn up by the Executive Yuan (Cabinet).

At a meeting chaired by President Chen Shui-bian yesterday, Cabinet officials reported that the island's economy could face trouble if the military confrontation drags over three months, including soaring crude oil prices, weakening demand for Taiwan's export products on the world market, shrinking domestic investment, and even a crisis of downturn for business conditions.

President Chen instructed the National Security Council to establish a monitoring task force to maintain close tracking on the impact from the U.S.-Iraqi confrontation and the new development from North Korea, which has reactivated its nuclear weapon project. He said the nation should share the responsibility of maintaining stability in the Asia-Pacific region with the cross-strait relationship as the axis.

The seven key measures dealing with the crisis include: stepping up the securing of oil sources and safety reserves, preventing companies from manipulating commodity prices to maintain price stability, preventing speculative activities on the stock and foreign exchange markets, and assisting enterprises with financing and insurance to maintain smooth foreign trade activities.

The government agencies will also make sure that the nation's air carriers and ships shun the fighting zone in the Middle East to ensure flight and shipping safety, enhancing public construction projects to maintain domestic economic growth, and safeguarding the security of the citizens living in the Mideast area and preparing to evacuate them from the threatened districts to safety.

The Ministry of Foreign Affairs will publicly demonstrate the nation's determination to back the U.S. anti-terrorism campaign, helping the U.S. carry out humanitarian relief operations, and keeping close contact with the U.S. to make sure that Taiwan's interests will not be sacrificed.

The Ministry of Finance has already mapped out possible actions, including moving the National Stabilization Fund into the stock market whenever there are irrational fluctuations on the market.

Sources said the rapid reaction troop has been put on full alert to beef up protection of people and facilities of the Taiwan offices of the American Institute in Taiwan (AIT) as well as other foreign embassies and representative offices on the island.