Govt to allow imports of mainland grains in case of war

Taipei, Feb. 13, 2003 (CENS)--The government plans to allow imports of grains from mainland China and subsidize airlines with war-risk insurance premiums in case a new war breaks between the United States and Iraq.

Vice Premier Lin Hsin-yi, head of a special task force set up by the Executive Yuan (Cabinet) to cope with possible U.S.-Iraqi war, made the proposals when he chaired the panel's second coordination meeting yesterday.

Lin instructed various government departments, including the ministries of Finance, Economic Affairs, and Transportation and Communications to work out more detailed contingency plans to deal with the situations.

The government will send the National Stabilization Fund into the financial markets in case stock prices slide irrationally due to the war or the manipulation by financial speculators.

Since the U.S. is a major supplier of bulk commodities, including grains, to Taiwan, the Ministry of Economic Affairs plans to temporarily lift the import ban on grains from mainland China if the war affects the shipments from the U.S.

There are still stocks of rice enough for five months in Taiwan. The inventory of corn, soybean and wheat may last between 40 and 60 days while the industrial materials will be enough for 25 days.

Lin instructed the Ministry of Transportation and Communications to adopt the same plan as after the terrorist attacks in the U.S. to help airlines pay the higher insurance premium rates for the third-party liability war-risk insurance coverage. The government will make up the difference for air carriers if necessary to ensure the smooth imports and exports of commodities.

After the "911 terrorist attacks" in the U.S. international insurance firms sharply raised their premium rates. The government had provided guarantee for Taiwan's air carriers concerning the war-risk insurance coverage.

In addition, leading oil companies will have petroleum products -- including crude oil on way to Taiwan -- that may last for a period of 113 days.