Taiwan's premier begins round of meetings in KL

Taiwan's premier begins round of meetings in KL

KUALA LUMPUR (AP): In a visit kept quiet for fear of angering
China, Taiwan's premier began meetings here yesterday to discuss
investment and ways to help Malaysia through its economic crisis.

Prime Minister Vincent Siew arrived Saturday for a two-day
stay, accompanied by a 30-member group of top Taiwanese
government officials and businessmen.

"We're here to talk some business (and) we're on holiday,"
Taiwan's Foreign Minister Jason Hu, who is accompanying Siew,
told reporters.

Also with Siew is Benny Hu, President of China Development
Corporation, a ruling Nationalist Party controlled holding
company. Hu told reporters Taiwan was ready to close the deal on
several investments in Malaysia.

The Chinese Embassy criticized the visit.

"We are opposed to any kind of official contact with Taiwan,"
an embassy spokesman said yesterday. "We would like to see that
there is no Malaysian official or high ranking people meeting
with Vincent Siew."

Malaysian officials Saturday insisted the visit was private
and were tight-lipped about the itinerary.

"No matter what kind of visit they call it it has an official
position," said the Chinese Embassy spokesman.

"We understand the financial situation in Southeast Asia," he
said. "We understand (Malaysia) needs help from our side. We hope
they will honor the one-China policy."

China considers Taiwan a breakaway province with no right to
conduct its own foreign affairs. China insists its diplomatic
partners shun formal relations with Taiwan, which separated
politically from mainland China in 1949 after a civil war.

The Taiwan Economic and Trade Cultural Center, Taiwan's de
facto embassy, could not be reached for comment.

Before Siew left his hotel yesterday morning to visit one of
Malaysia's megaprojects, the Multimedia Super Corridor, the
premier had breakfast with Malaysian property and hotel tycoon
Lee Kim Yew, known for his close links with Prime Minister
Mahathir Mohamad.

Siew, who would not comment on the nature of his visit, told
reporters: "I'm very happy to see so many old friends. Today's
Sunday and its good to relax a bit."

Siew spent six years in Malaysia as a Taiwanese diplomat.

Local media and government security have been told to keep
coverage of the visit to a minimum.

As Siew was being ushered through a pack of reporters waiting
at the hotel, a Malaysian security guard yanked the cable from a
television camera belonging to a foreign television journalist.

"We have instructions not to allow local press to cover this,"
the guard said.

Siew is also expected to visit a plant which manufactures the
Proton, Malaysia's national car.

The United Daily News in Taiwan reported Saturday that Siew
would talk with Malaysian officials about a proposal Taiwan made
last month to let its private banks guarantee bonds issued by
Asian governments to help their troubled economies.

Taiwan's Foreign Minister Hu told reporters Saturday that
Taiwan was not concerned over possible friction with China in its
effort to break from diplomatic isolation.

"For our survival, we insist on taking any moves that will
help us create a new era," he said.

In January, Siew visited the Philippines and Indonesia. Both
of those countries have diplomatic relations with China.

In March, Malaysia's Deputy Prime Minister Anwar Ibrahim
visited Taipei, where he met with government and business
leaders.

Taiwan's Vice President Lien Chan made a private visit to
Malaysia in March. He met with several top local Chinese
businessmen, as well as Anwar and Mahathir.

During that visit, Mahathir said Taiwan was in a position to
help stimulate Southeast Asia's economies.