Taiwan Update, Issue No.:1208-02 1. Taiwan East China Sea’s Peace and its background In remarks made on the morning of August 5 at the Opening Ceremony of the Special Exhibition on the 60th Anniversary of the Coming into Force of the Treaty of Peace between the Republic of China and Japan, which was co-hosted by the Ministry of Foreign Affairs and Academia Historica at the Taipei Guest House, President Ma Ying-jeou expressed his concern regarding rising tensions over the Diaoyutai Islands. He proposed the East China Sea Peace Initiative aimed at easing these tensions, and called on all parties concerned to show restraint, shelve controversies and settle the dispute in a peaceful manner. It is hoped, he said, that reaching a consensus on a code of conduct in the East China Sea, and on establishing a mechanism for cooperation on exploring and developing resources in the East China Sea, would help ensure peace in this region. The Diaoyutai Islands, an island group that is part of Taiwan, lie just 102 nautical miles from Keelung in northeast Taiwan and are within the administrative jurisdiction of Daxi Village in Toucheng Township, Yilan County, Taiwan. Whether looked at from the perspective of history, geography, geology, practical use or international law, the Diaoyutais are indisputably an inherent part of the territory of the Republic of China (Taiwan). It is therefore appropriate that the Republic of China should propose this East China Sea Peace Initiative and attempt to settle the Diaoyutai dispute. The Republic of China is a peace-loving country, and its government has always asserted that international disputes should be settled peacefully based on the provisions of the UN Charter. With respect to the Diaoyutai issue, the government of the Republic of China has consistently affirmed its position of “safeguarding sovereignty, shelving disputes, pursuing peace and reciprocity, and promoting joint exploration and development.” As an important air and sea transportation hub in the western Pacific, the East China Sea has clear significance for security and peace in the Asia-Pacific region, and in the world as a whole. In order to prevent further escalation, the dispute over the Diaoyutais must be settled peacefully through a multilateral dialogue mechanism. The government 0 Taiwan Update, Issue No.:1208-02 of the Republic of China, therefore, solemnly proposes an East China Sea Peace Initiative and calls on all parties concerned to: 1. Refrain from taking any antagonistic actions. 2. Shelve controversies and not abandon dialogue. 3. Observe international law and resolve disputes through peaceful means. 4. Seek consensus on a code of conduct in the East China Sea. 5. Establish a mechanism for cooperation on exploring and developing resources in the East China Sea. Today marks the 60th anniversary of the coming into force of the Treaty of Peace between the Republic of China and Japan. Sixty years ago today at the Taipei Guest House, the Republic of China and Japan officially brought to an end an extremely vicious war that lasted for eight years and resulted in the death or serious injury of 25 million people. Over the last sixty years, countries in Northeast Asia have enjoyed rapid economic development and become a model for other countries around the world. Alarmingly, however, the recent rise of tensions due to the Diaoyutai dispute has the potential to jeopardize peace and stability in East Asia. Yet peace and prosperity in the region have not come easily, and the Republic of China never again wants to see a catastrophe such as the Second Sino-Japanese War happen here. By proposing the East China Sea Peace Initiative, the Republic of China hopes that all parties concerned will be compelled to carefully consider the gravity of the possible consequences of territorial disputes in Northeast Asia. It is therefore hoped that all parties concerned will commit to settling these disputes through peaceful means, so that peace in the East China Sea can be maintained. It has been noted that, in order to avoid conflicts in the South China Sea, the parties concerned reached a consensus and signed the Declaration on the Conduct of Parties in the South China Sea ten years ago. They also committed to resolving territorial and sovereignty disputes in a peaceful manner, without resorting to the threat or use of force. The parties have also attempted to enter into negotiations on a Code of Conduct in the South China Sea, with the aim of making this commitment legally binding. 1 Taiwan Update, Issue No.:1208-02 As for the East China Sea, the government of the Republic of China hopes that the parties concerned will settle disputes through peaceful means in accordance with the United Nations Charter and Article 279 of the United Nations Convention on the Law of the Sea of 1982. The Republic of China also hopes that having all parties seek a consensus on a code of conduct in the East China Sea will provide a common frame of reference for dealing with such issues as territory, sovereignty and the use of resources. National territorial sovereignty cannot be divided. Natural resources can, however, be shared. There have been various sovereignty disputes over maritime space and islands around the world over the years. One such example that has been turned into a success story is the North Sea in Europe, where it was agreed that the parties involved would develop oil fields. It is hoped that, through the East China Sea Peace Initiative, all parties concerned can shelve their disputes and come together to cooperate on exploring and developing resources in the East China Sea. This cooperation can also extend to a range of other areas, such as protecting the marine environment, conducting search and rescue operations, combating crime, and so forth. This initiative will hopefully give weight to the issue, so that all parties concerned can work towards making the East China Sea into a sea of “peace and cooperation.” 2. Taiwan to acquire two mine hunting ships soon Taiwan is beefing up its naval defense capabilities with the acquisition of two minehunters from the United States soon, a source familiar with the matter said Wednesday. The two refurbished Osprey-class mine hunting ships will be delivered to Taiwan soon, and will be commissioned about a month after the delivery, the source told CNA. The vessels will improve the Navy's minehunting and minesweeping ability to locate and destroy naval mines used in sea blockades, in the event of conflict, the source said. In early 2010, the U.S. government approved the sale of two Osprey-class mine hunting ships to Taiwan. The package includes refurbishment, upgrade and other related support and services, at an estimated cost of US$105 million. 2 Taiwan Update, Issue No.:1208-02 3. Cabinet to present framework for economic stimulus The Cabinet plans to unveil Tuesday the framework of its plan to stimulate Taiwan's economy and will hold a series of meetings with business leaders on the issue later this week, Cabinet spokesman Hu Yu-wei said on Monday. The framework will be presented by Minister without Portfolio Kuan Chung-ming, who heads a task force that addresses global economic issues, Hu said. The economic stimulus plan will cover five areas -- exports, human resources, investment, government efficiency and business sectors, Hu said. The Cabinet also touted its progress in improving government efficiency in a press release on Sunday, pointing out that the administration has pushed for relaxation of 785 laws and regulations between July 2008 and last month. The relaxed laws and regulations include the easing of restrictions on Chinese business travelers' entry to Taiwan and simplifying the filing of corporate tax, the statement said. Meanwhile, a series of five meetings between government officials and business leaders will be held from Aug. 11, with Premier Sean Chen hosting the first meeting that day, according to the Council for Economic Planning and Development. The meetings, organized by the council after business leaders urged the government to improve the business environment amid the current economic uncertainty, will discuss issues prepared by leading business groups, such as labor relations and energy policies 4. Cross-strait invest pact effective by year-end: official Vice Economics Minister Bill Cho ( 卓 士 昭 ) stated that a cross-Taiwan Strait investment protection pact is expected to take effect by the end of this year after ratification in the Legislative Yuan. The pact is to be signed on Aug. 9, Mainland Affairs Council (MAC) head Lai Shin-yuan (賴幸媛) said. 3 Taiwan Update, Issue No.:1208-02 According to Lai, the pact will provide new channels for settling disputes and assure Taiwanese investors' personal safety when doing business in China. Lai said the agreement will be a big help to Taiwanese businesspeople, who have been vulnerable in disputes with Chinese companies or the mainland government because they can only seek arbitration in line with China's judicial procedures. In the future, she said, the new mechanism will enable person-to-person disputes, between private Taiwanese and Chinese companies, for example, to seek arbitration in either Taiwan or a third country agreed upon at the time a contract is signed. Though the inclusion of a person-to-person arbitration mechanism is not common in similar international investment agreements, it is significant for Taiwan because about 65 percent of business disputes between Taiwan and China fall into the category, according to the MAC. The mechanism gets around one of the main stumbling blocks that was holding up the agreement, which was Beijing's refusal to accept the use of an international arbitrator to settle disputes because that would tacitly acknowledge Taiwan's sovereignty. As for commercial disputes between private businesses and governments (P2G), the investment pact will outline multiple remedies with different levels of mediation, it said. A government-to-government (G2G) settlement, meanwhile, will be dealt with based on the existing Economic Cooperation Framework Agreement (ECFA), council officials said. Lai said the investment pact will also cover personal safety, another concern of Taiwanese businesspeople operating across the Taiwan Strait. Under the new plan, if Taiwanese investors are arrested in China, their family members are to be notified of their whereabouts within 24 hours of their arrest. Some exceptions exist, however, as China's newly amended criminal litigation law stipulates that authorities do not need to inform family members of arrests of suspects involved in national security issues and terrorist acts. The investment pact, along with a cross-strait customs cooperation agreement, will be signed during the eighth meeting between Straits Exchange Foundation (SEF) Chairman Chiang Pin-kung and his Chinese 4 Taiwan Update, Issue No.:1208-02 counterpart, Chen Yunlin, president of the Beijing-based Association for Relations Across the Taiwan Straits. Originally scheduled to take place in the first half of this year, the meeting was postponed, as a consensus on the investment pact had not yet been reached. 5. HTC remains 5th largest maker of phones but closes in on competitors Taiwan's HTC Corp. remained the fifth largest maker of mobile phones in the United States, but the struggling manufacturer has cut the gap between it and the leading players, research firm comScore said Wednesday. According to a study by comScore, 234 million Americans aged 13 and older used smartphones and feature phones from April to June this year. Samsung Electronics Co. ranked as the top handset maker with 25.6 percent of U.S. mobile subscribers, followed by LG Electronics Inc. (18.8 percent), Apple Inc. (15.4 percent), Motorola Mobility Holdings Inc. (11.7 percent) and HTC (6.4 percent). Among the top five vendors, Apple recorded the biggest gains of 1.4 percentage points from the previous three-month period, while HTC's market share rose 0.4 percentage points. Google Inc.'s unit, Motorola, dipped 1.1 percentage points, with LG and Samsung declining 0.5 and 0.4 percentages points, respectively, the study shows. In terms of smartphone operating systems, Google's Android remained the top platform with a 51.6 percent market share, up 0.6 percentage points from the January-March period. Apple's iOS share increased 1.7 percentage points to 32.4 percent, trailed by Research In Motion's BlackBerry system with 10.7 percent, Microsoft's Windows with 3.8 percent and Nokia's Symbian with 0.9 percent. In April this year, HTC said it will learn more about the smartphone markets in Europe and Asia in the face of the steep competition in the United States. AT&T Inc., the second-largest U.S. mobile operator, announced in July a price drop for HTC's One X flagship smartphone from US$199 to 5 Taiwan Update, Issue No.:1208-02 US$99 for a two-year contract, less than three months after the launch of the phone. Some analysts viewed the move as a bad signal because HTC had been able to sell its phones for 6-12 months prior to the price cuts. On the contrary, HTC did well in China with its cheaper “New Desire” series, which helped its volume share in the sub-2,500 Chinese yuan segment improve from 3 percent in the first quarter to 6 percent in June, the analysts said. 6. New supercomputer launched by NCHC to spur efficiency: official The National Center for High Performance Computing (NCHC) has launched a new supercomputer to help reduce the computation times required in various fields, a center official said yesterday. Formosa 5, Taiwan's self built cloud-computing system, has finished final testing and is ready for use, said Alpha Wang, manager of the planning and promotion division at the NCHC. The main feature of the system is a graphic processing unit (GPU) cluster that allows it to carry out several simultaneous calculations quickly and accurately, she said. The Formosa 5 CPU is currently the fastest in the country, 1.8 times the speed of another of Taiwan's well-known supercomputers, the Advanced Large-scale Parallel Supercluster, Wang noted. 7. Taiwan clinches 1st place at Microsoft software contest LOS ANGELES -- Frequent use of computer software for school assignments has helped a Taiwanese university student win a category at the 2012 Worldwide Competition on Microsoft Office in Las Vegas Wednesday. Yeh Chih-chang, who will begin her fourth year at New Taipei-based Tamkang University, won the first place in the Microsoft Powerpoint 2007 category at the annual event. It was the fifth first prize won by Taiwan's team over the past four years. Meanwhile, Chen Man-ying of National Taiwan University of Science and Technology won the third place in the same category. 6 Taiwan Update, Issue No.:1208-02 Yeh received a cash prize of US$5,000 and Chen, US$500, as well as a medal and a certificate each. Chiu Sung-hsuan, deputy leader of the six-member Taiwanese team, said he was quite pleased with the results because the team faced tougher competition this year compared to last year. Taiwan won the first place in the Powerpoint 2007 category in 2011, top places in Word and Excel in 2010, and in Excel in 2009. Yeh said she is familiar with the software as she often uses it for school assignments, but was quite surprised to win the competition because she was not sure if she correctly understood the exam which was translated from English to Chinese. According to organizers, contestants from 73 countries and regions competed in six categories — the 2010 and 2007 editions of Word, Excel and Powerpoint — in this year's competition that was held from July 29 to Aug. 1.. 7