Taiwan: Oil, food supplies assured in event of Iraq war, says Yu - Premier suggests short-term military action would positively impact Taiwan's economy

www.etaiwannews.com 2003-03-19 / Taiwan News, Staff Reporter / By Darcy Pan

Premier Yu Shyi-kun yesterday stressed that the government has made full preparations to cope with the possible impact on Taiwan should a war on Iraq break out.

Also at yesterday's routine press conference, Foreign Ministry Spokesman Richard Shih, echoing U.S. President George W. Bush's call, urged Iraqi President Saddam Hussein and his sons to leave Iraq as soon as possible so as to avoid any conflict. Shih added that the foreign ministry will issue an official statement once a war breaks out.

Fielding questions at a Legislative Yuan plenary session, Yu stressed that the Cabinet has prepared measures to ensure stable supplies of oil, key materials and stability of domestic stock markets.

After U.S. President George W. Bush gave Iraqi leader Saddam Hussein an ultimatum Monday night to leave Iraq or face a war, many opposition legislators voiced concerns about Taiwan's measures to cope with the situation.

The premier indicated that the task force on economic and financial measures headed by Vice Premier Lin Hsin-i has convened six meetings since February 6 this year in preparation for the continuously changing situation in Iraq.

The task force will conduct meetings as soon as the war on Iraq breaks out so as to cope with the possible impact on Taiwan's economy, said Executive Yuan Spokesman Lin Chia-lung yesterday.

Yu further added that other responsible ministries have also prepared measures to deal with the supplies of oil and food while plans on evacuating overseas Taiwanese people have been drafted as well.

According to Yu, the current domestic storage of oil can last for 113 days while a seven-month supply of rice and a two-to-three month supply of soybeans, corn and wheat are also secured. The Cabinet has also made preparations for evacuating overseas Taiwan nationals to ensure their safety, Yu said.

The premier predicted that the war would generate more positive impact on Taiwan's economy if it should end in a short period of time. But if the war lasts longer than six weeks, negative influence in the domestic economy may be expected, he noted.

Meanwhile, the state-run Chinese Petroleum Corporation also indicated yesterday that if the war lasts for too long, the corporation would import crude oil from Venezuela and Ecuador if necessary.

Speculations have been made that Iraqi President Saddam Hussein may bomb the oil fields in the northern part of Iraq once the war breaks out.

According to the CPC, about 60 percent or 70 percent of Taiwan's crude oil is imported from the Middle East.

Also, in response to the impending conflict in Iraq, some domestic airline companies have prepared contingency route plans to avoid the war zone.

China Airlines Spokesman Roger Han said that it remains unknown as to how big the battlefield would be, but as soon as the war starts, the CAL will accept the suggestion by the International Civil Aviation Organization and change the flight routes to avoid the war zone.

The routes will be moved either south or north, Han added.

Eva Air also indicated that all flight routes from Taiwan to Europe would be affected if the war starts, so the company has planned 20 alternative routes to cope with the impending conflict, adding that the prepared routes are subject to change.

As for the impending war's impact on marine transportation, Evergreen Marine Corporation indicated that if the war zone is restricted to Iraq, transportation would not be too greatly influenced. But if the war zone extends to Kuwait or Saudi Arabia, Evergreen would change its port of call to Dubai.

Another marine transportation company, Yangming Marine Transport Corporation, said it does not have ports of call in the Middle East but if the war lasts for any substantial period, the corporation would not rule out the possibility of raising premiums.