TNAG-1868-FCO40-2656-Relations-between-Hong-Kong-and-Taiwan-1989 — Page 103

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TAIWAN : RESEARCH DEPARTMENT NOTE NO 10: DECEMBER 1988

Summary

Miss Jenist

Mr Kannon

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1. President of the Legislative Yuan formally resigns. scuffle in the National Assembly results in Opposition MPS being forcibly removed from the House. Taiwan announces that the Anglo-Taiwan Trade Committee is to open a visa and cultural office. As a result of further relaxation of Taiwan's mainland policy, five Chinese students studying abroad arrive in Taipei for a 10 day visit. Taiwan citizens responded generously to the disaster relief appeal following the Yunnan earthquake. Six fishermen are wounded in an incident in the Taiwan Strait.

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Domestic: Political

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Parliament's President Nieh Wen-ya finally got his resignation accepted. He formally resigned from his post on 16 December. He said he was forced to step down by ruthless KMT legislators who accused him of being unable to control the chaotic and sometimes unruly legislative process when clashes between KMT and DPP members arose. He also resigned his seat in the Legislature. He will become a senior adviser to President Lee Teng-hui. It was announced that elections would be held for his post in two months' time. senior Opposition legislator Fei Hsi-ping also announced his conditional retirement in a push for parliamentary rejuvenation.

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There was a drama in the National Assembly on 25 December when 10 Opposition MPs were dragged from the Assembly by police for causing a commotion during the 41st Celebration of Constitution Day. The DPP deputies had earlier been prevented from carrying placards and banners into the building calling for the ousting of ageing congress members to make way for younger representatives.

Domestic : Economic

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The 1989 economic plan was approved by the Council for Economic Planning and Development (CEPD). It calls for 7% growth, which is to be sustained by an increase in public expenditure of 26.7% to NT $355 billion. The trade surplus is to be narrowed by US $10 billion, consumer prices increased by 3% and per capita income to reach US $6,715 in 1989. The plan also calls for a 5.8% growth in industrial production, 8.5% increase in the service industry and a 1.5% growth in the agricultural sector.

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