TAIWAN PROPOSES TO INVEST ONE BILLION DLRS IN U.S.
Taiwan's Economic Ministry has approved
an ambitious proposal calling for a one billion U.S. Dollar
investment by private and public companies in the United States
over the next five years, ministry officials said.
    John Ni, director of the Ministry's Industrial Development
and Investment Centre (IDIC), said under the IDIC proposal,
Taiwanese firms would be encouraged to set up factories and
invest in property and securities markets in the U.S..
    Taiwan's 1986 investment in the U.S. Totalled 46 mln U.S.
Dlrs, official statistics show.
    The investment was mainly in the electronics, food, service
and trading sectors.
    The new proposal, approved by Economic Minister Lee Ta-hai
yesterday, calls for investment of 80 mln U.S. Dlrs in 1987,
120 mln in 1988, 160 mln in 1989, 240 mln in 1990 and 400 mln
in 1991, he told Reuters.
    It will be discussed soon by officials of the Finance
Ministry, the Central Bank and the Council for Economic
Planning and Development before being submitted to the cabinet
for final approval, he said.
    "This is the first ambitious proposal with government
initiatives to encourage our businessmen to invest in America,"
Lee said.
    He said government incentives to prospective Taiwanese
investors would include bank loans and a five-year income tax
holiday. Applications for investing in the U.S. Would also be
simplified.
    A ministry spokesman told reporters the proposed investment
would be helpful in creating job opportunities for Americans
and avoiding U.S. Import quotas or restrictions on Taiwanese
products.
    The plan will also help reduce Taiwan's trade surplus with
the U.S., Which rose to a record 13.6 billion U.S. Dlrs in
1986, up from 10.2 billion in 1985, the spokesman said.
    The rising surplus has enabled Taiwan to accumulate some 54
billion U.S. Dlrs in foreign exchange reserves.
    Economists described the proposal as a significant step by
the government to head off U.S. Protectionism.
    "Time is running out for us. Taiwan has lagged far behind
Japan and South Korea in encouraging its businessmen to invest
abroad," said Hou Chia-chi, economics professor at Soochow
University.
 REUTER
