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4. The "Three Direct Links" and the So-called Taiwan Security
The Taiwan authorities assert that the "three direct links," especially the direct, two-way air and shipping services across the Straits will seriously jeopardize the security of Taiwan, and take this assertion as their main reason for impeding the direct, two-way and complete "three links." Certain Taiwan organizations recently classified its security issue into the four issues of military security, political security (mainly, Taiwan's being dwarfed politically), economic security (mainly, Taiwan's markedlyincreasing economic dependence on the mainland market, its industrial "hollowing" and its growing unemployment rate), and social security (mainly, public order, epidemic prevention, socialwelfare and education burden). Apart from those possible problems relating to social security that can be discussed and pre-arrangedin the "three direct links" consultations, the other viewpoints are ungrounded in facts; rather they are products of the Taiwan authorities' inveterate hostility toward the mainland, their purpose being to influence Taiwan compatriots' attitude toward the"three direct links" and continue to postpone and obstruct the "three direct links." These viewpoints need to be pointed out and corrected.
The Assertion That "Direct Air and Shipping Services Will Seriously Jeopardize Taiwan's Military Security."
First, the mainland's policy on Taiwan is based on the fact that the people on both sides of the Straits are bound together like brothers and sisters, and, as the saying goes, "Blood is thicker than water." We cherish greater hope than any others for solving the Taiwan question by peaceful means. The mainland has worked for the prospect of peaceful reunification with the greatest sincerity and the utmost effort. When we say we will not commit ourselves to rule out the use of force, it is directed not against the Taiwan people, but against the attempt of foreign forces to interfere with China's reunification and the attempt of Taiwan's separatist forces to materialize "Taiwan independence." Second, the technical and professional problems concerning direct air and shipping services across the Straits, consultation on an equal footing by the two sides should be conducted and unanimity of opinions reached, before they can be put into practice. By then,Taiwan's concern about its security will be properly resolved. Third, in fact, direct transport service across the Straits has been opened on a trial basis for six years, and direct sea transport between coastal areas in Fujian and Jinmen and Mazu has been going ahead for over two years. These have never infringed onTaiwan's "military security," nor have they brought any "threat" to Taiwan. On the contrary, these direct contacts have helped build up a harmonious and stable atmosphere in the Taiwan Straits area. Fourth, the fundamental way of realizing and maintaining peace and stability in the Taiwan Straits area is that the Taiwan authorities must totally abandon the separatist claim to "Taiwan independence" and stop all the splittist activities along that line; and that negotiations should be held and an agreement reached on "an official end to the state of hostility between the two sides under the principle of one China so as to jointly safeguard China's sovereignty and territorial integrity and work out plans for the development of the future inter-Straits relations. The more this state of hostility is eased, the more peaceful the Taiwan Straits area will become. And the more rapidlythe inter-Straits relations are developed, the better the compatriots on both sides of the Straits will be assured of their security.
The Assertion That "Taiwan Will Be Dwarfed Politically" in the Process of the Consultation on the "Three Direct Links."
We have always maintained that both sides should solve their differences and problems in the spirit of mutual respect and consultation on an equal footing and with a practical approach, and that one side should not impose its will on the other. Previous negotiations between the ARATS and SEF and exchanges and consultations between nongovernmental trade organizations on both sides of the Straits were all carried out on an equal basis. The question of who would be "dwarfed" simply did not arise. In the trial direct transport across the Straits and the direct sea transport between coastal areas in Fujian on the one hand and Jinmen and Mazu on the other, the two sides handled transportationfacilities and technical problems entirely on the principle of equality and reciprocity, bringing about mutual benefits and a win-win situation. Future negotiations on the "three direct links," including market opening and relevant management, and arrangement of operation rights and interests will also be carried out under the principle of mutual respect, consultation on an equal footing,fairness and justifiableness, reciprocity and mutual benefit. The question of Taiwan being "dwarfed" in the "three direct links" process will not arise at all.
The Assertion That "the 'Three Direct Links' Will Threaten Taiwan's Economic Security."
First, about the security problem stemming from Taiwan's increasing economic dependence on the mainland market, as a resultof the "three direct links." The fact is that the mainland and Taiwan each has its economic advantages, which may supplement eachother's needs. In the process of inter-Straits economic exchange and cooperation, the Taiwan economy has gained impetus for growth from the rapidly economic growth of the mainland, which has provided favorable conditions for Taiwan's industrial restructuring and given its enterprises new room for development, thus stimulating its economic development. This has been fully proved by the facts of the past two decades. In the upsurge of economic globalization and regional economic cooperation, if and when the "three direct links" is realized, and each side's merits are well developed and the two sides are linked closely together economically, this will facilitate both sides in their efforts to prevent economic and financial risks and achieve common prosperity.This conclusion can be readily drawn if one views the question in the light of the interests of the Taiwan compatriots and the needsof Taiwan's economic development.
Second, about the "three direct links" accelerating Taiwan's industrial shift to the mainland, thereby resulting in the "hollowing out" of Taiwan's industry. Industrial "hollowing out" generally refers to the decline of the proportion of manufacturingindustry in the total economy, as well as the decline of its productivity and international competitiveness. The research results from relevant departments in Taiwan show that the investment of Taiwan enterprises on the mainland increased rapidlyfrom 1990 to 2001. During this period, the export share of Taiwan products in the global market did not decrease, but instead it increased from 1.96 percent to 2 percent. It did not cause a drop of the total productivity and competitiveness of Taiwan's manufacturing industry, or the so-called "hollowing out" of Taiwan's industry. On the contrary, the "three direct links" will help Taiwan enterprises to rationally allocate and use their essential production factors and resources. Through division of labor and cooperation, Taiwan can bring into play its economic advantages, increase its development potentials and competitiveness, and effectively avoid the industrial "hollowing."
Third, about Taiwan enterprises' investment on the mainland resulting in increased unemployment in Taiwan. The fact that the rate of unemployment in Taiwan has increased in the past few yearshas been caused mainly by a decline of the enterprises' will in investment. In fact, one of the main reasons is that the current leader of the Taiwan authorities sticks to the separatist stance of "Taiwan independence," undermines the cross-Straits relations and impedes the "three direct links," which have dealt a blow to the confidence of Taiwan and overseas investors. At the same time,the rising unemployment rate is also due to its structural unemployment. With the increase of investment and production costsin Taiwan, labor-intensive industries there have further lost their competitive advantages, and investors have had to look elsewhere for low-cost areas for continued development. By investing on the mainland, such enterprises can regain their competitiveness, and use the profits they make on the mainland to increase their investment capacity in Taiwan, so as to support thesustained development of the emergent industries in Taiwan, and greatly increase their exports to the mainland. All these have played an important role in increasing Taiwan's employment, upgrading its industries and stabilizing its economy.


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