Although the Republic of China has been relatively unaffected by the financial woes sweeping much of the East Asia, President Lee Teng-hui today called on senior economics officials to guard against any turmoil and to ensure the smooth development of Taiwan's economy.
After being briefed at a high-level economic meeting on this country's current economic situation, the President lauded the fact that the ROC's sound economic fundamentals have shielded it from the regional economic crisis.
Given the increasing integrity of the economies in the region, however, President Lee urged government agencies concerned to monitor closely the unfolding of the crisis, and prepare for future challenges with forward-looking visions.
The meeting brought together Vice President Lien Chan, Premier Vincent Siew, Secretary-general Huang Kun-huei of the Office of the President, Secretary-general Ding Mou-shih of the National Security Council, Economics Minister Wang Chih-kang, Finance Minister Pauo Chiu, Chairman P.K. Chinag of the Council for Economic Planning and Development, Governor Sheu Yuang-dong of the Central Bank of China, and Deputy Secretary-general Su Chi of the Office of the President.
The attendents were told that the crisis gripping East Asian countries stems from the collapse of the so-called "bubble economy," deficits in current accounts, heavy foreign debts, small foreign reserves, over-reliance on the inflow of foreign capital and rigid foreign exchange rates.
On the other hand, Taiwan's capability to withstand the crisis is based on its steady macro-economy, surplus in its current account, few foreign debts, a gradual process of opening up its markets to foreign investment, and a sound financial system.
The attendents, from Vice President Lien down, also credited the island's smooth avoidance of economic turmoil to President Lee's "avoid haste, exercise restraint, walk steadily to go far" policy toward the Chinese mainland, which they said should remain the country's guiding principle in dealing with the mainland.