TNAG-2794-FCO40-4034-Relations-between-Hong-Kong-and-Taiwan-1993 — Page 108

QUARTERLY ECONOMIC REPORT

FOR ATTC, LONDON

Economic overview

per

1992

saw Taiwan's GNP surpass the US$ 200 billion mark, દી capita income of US$ 10,196 (24th in world ranking), two-way trade reach US$ 153 billion maintaining Taiwan's position as the world's fourteenth largest trading nation, and foreign exchange reserves totalling around US$ 85 billion. GNP growth was 6.1

per cent, down on original forecasts, mainly due to falling exports affected by the world economic recession.

For 1993, further GNP growth of between 6.5 and 7 per cent is predicted, together with a GNP per capita of US$ 10,800, and two- way trade of around US$ 200 billion. Critical factors are the extent of economic recovery in the US and Europe, the continued boom in trade with Mainland China, and steady progression on infrastructural projects.

In a recent speech in the National Assembly, President Lee,

paying tribute to Taiwan's economic achievements, noted that the public quality of life did not reflect the increased national income and that the environment, traffic, education, and social living standards all needed improvement. Priorities for Taiwan were to review and prioritise the Six-Year Plan and to accelerate the transition of local industries from labour intensive to technology intensive production. Two negative factors are the continuing drop, over the past six years, in both investment

in both the manufacturing sector as local enterprises move overseas, the savings rate, now down

now down to 20 per cent after peaking at 38 per cent in 1987.

in

and

Political developments

Following the Legislative Yuan elections in December, which saw the opposition DPP party make strong gains, Premier Hau and the rest of the Cabinet resigned en masse in February, with Lien Chan, formerly Governor of Taiwan, appointed as the new Premier. New appointees to the Cabinet include Hsu Li-Teh as Vice-Premier (previously finance and economics minister), Kuo Wei-Fan as Minister of Education (formerly Chairman of Council for Cultural Planning), Ma Ying-Jeou as Justice Minister (Vice-Chairman Mainland Affairs Council), Chiang Pin-Kung as Economics Minister (promoted from Vice-Minister), Vincent Siew & S CEPD Chairman (Economics Minister) Shirley Kuo becomes Minister without portfolio, Liu Chao Hsien 25 Transport and Communications Minister (President of Ching Hua University), Sun Chen as Minister (President of National Taiwan University.

of

Defence