I. Foreword

In April 1993, the SEF and ARATS held the "Koo-Wang Talks" in Singapore. At that time they signed four agreements that established an institutionalized negotiation channel, as well as an official communication bridge between the two sides. This was a development of epochal significance. In 1995, the SEF and ARATS broke off negotiations; and in 1999 official contact between the two sides was suspended as well. This marked the start of a long low in cross-strait relations. 

On May 26 this year, SEF Chairman Chiang and Vice Chairman Kao sent a letter to ARATS notifying that the SEF had been authorized by the Mainland Affairs Council (MAC) to hold negotiations with ARATS on the two issues of "cross-strait charter flights" and "allowing Chinese tourists to visit Taiwan." On May 29, ARATS sent a letter formally inviting Chairman Chiang and Vice Chairman Kao to lead a delegation to Beijing from June 11 to 14 for talks on the said two issues. 

The SEF promptly formed a 19-person negotiation delegation composed of officials of various competent authorities, including MAC Vice Chairman Fu Don-cheng and two colleagues, Vice Minister of Transportation and Communications Oliver Yu and two colleagues, and National Immigration Agency Deputy Director Steve Wu, as well as several of colleagues from the SEF. Before their departure, the delegation members met to coordinate and discuss matters related to the negotiation issues and to designate the visit as a "Journey of Mutual Trust and Negotiations." 

Through everyone's hard work, and with public expectations high on both sides, the SEF and ARATS overcame formidable difficulties and put aside their differences to resume formal talks in a very short time. 

II. Meeting Agenda

Chairman Chiang and the delegation departed for Beijing on June 11 and returned to Taiwan on June 14. The main activities during their visit were as follows: 

1. Talks: SEF Chairman Chiang and ARATS Chairman Chen Yunlin met for talks on June 12 from 9:00 to 10:20 a.m. 

2. Negotiations: From 10:30 a.m. and 2:30 p.m. on June 12, ARATS Vice Chairman Sun Yafu and Vice Chairman Kao exchanged views on the issues of "cross-strait charter flights" and "allowing mainland Chinese tourists to visit Taiwan." 

3. Visits: 

(1) At 10:30 a.m. on June 12, Chairman Chiang and his wife were accompanied by Chairman Chen Yunlin on a visit to Biyun Temple in Siangshan to pay respects at the tomb of Dr. Sun Yat-sen. 

(2) At 2:30 p.m. on June 12, Chairman Chiang and his wife were accompanied by ARATS vice chairmen Wang Fuqing and An Min on a visit to the Water Cube, Wukesong Sports Center Baseball Field and other Olympics venues. 

4. Meetings: 

(1) At 6:00 p.m. on June 12, Chairman Chiang led some of the delegation members to meet with Director Wang Yi of the Taiwan Affairs Office. 

(2) At 4:30 p.m. on June 13, Chairman Chiang led some of the delegation members to meet with Hu Jintao. 

5. Agreement signing: At 9:00 a.m. on June 13, the leaders of the SEF and ARATS officially signed the "Minutes of Talks on Cross-Strait Charter Flights" and "Cross-Strait Agreement on Travel by Mainland Residents to Taiwan." 

All of the above-mentioned negotiations, agreement signings and talks were carried out in keeping with the principles of reciprocity and dignity. Moreover, the negotiations were conducted under the ultimate guiding principle of "Taiwan first, for the good of the people," as instructed by President Ma Ying-jeou. 

III. Major Content of the Negotiations and Talks

1. Major Content of the Negotiations

During the previous administration (June 2005), the two sides held several technical negotiations on normalizing cross-strait charter flights and allowing mainland tourists to visit Taiwan. Thereafter, Taiwan and the mainland side continued to maintain unofficial communication on related issues. Both sides have now reached a high level of consensus on these issues. 

After resuming talks this time, the SEF and ARATS signed the "Minutes of Talks on Cross-Strait Charter Flights" and "Cross-Strait Agreement on Travel by Mainland Residents to Taiwan." We expect that the resulting expansion of cross-strait contacts will help increase understanding between the people on both sides, as well as be conducive to economic development on both sides and the stability of cross-strait relations. The two sides also agreed to promptly discuss such issues as cross-strait cargo charter flights and expanding the number of flights, opening up more flight points and establishing new routes for weekend charter flights. Follow-up talks on implementing such measures are also under discussion. 

(1) The main substance of the "Minutes of Talks on Cross-Strait Charter Flights" is as follows: 

A. The two sides agreed to officially implement weekend charter flights for the four-day period from Friday to Monday, starting on July. 

B. Flight points: The mainland side agreed to open five flight points, including Beijing, Shanghai (Pudong), Guangzhou, Xiamen, and Nanjing and to later open flight points in Chengdu, Chongqing, Hangzhou, Dalian, Guilin, Shenzhen, and other places with market demand. The Taiwan side agreed to open eight flight points, including Taiwan Taoyuan International Airport, Kaohsiung International Airport, Taichung Airport, Taipei Songshan Airport, and airports in Magong, Penghu, Hualien, Kinmen, and Taitung. 

C. In the initial stage, the two sides agreed to arrange 18 weekly roundtrip flights each, for a total of 36 roundtrip flights, and to increase the number of flights according to market demand. 

D. The two sides agreed to allow all persons on the two sides with valid travel documents, including foreign travelers, to take the passenger charter flights. 

E. The agreement requires air carriers offering charter flights to establish offices at flight points on the other side. 

F. The two sides also discussed the issue of cargo charter flights. However, since certain technical issues still need to be resolved, they agreed to hold talks on this matter within three months after the launch of the weekend charter flights, and to quickly reach a consensus and implement this measure. 

(2) The main content of the "Cross-Strait Agreement on Travel by Mainland Residents to Taiwan" is as follows: 

A. The two sides agreed that the first mainland group would travel to Taiwan on July 4, and tourism visits from the mainland to Taiwan would officially begin on July 18. 

B. A daily average quota of 3,000 mainland visitors will be adopted for the first year, and the two sides will discuss making adjustments in the second year based on circumstances. 

C. The two sides have established rules on group entry and exit, travel agency standards, application procedures, assurance of travel quality and traveler rights and interests, and dealing with overstays. 

D. The two sides have designated the Taiwan Strait Tourism Association (TSTA) and Cross-Strait Tourism Exchange Association (CTEA) as the contact windows for handling travel disputes, overstays and emergencies. 

2. Major Content of the Talks

(1) During the meeting, Chairman Chiang proposed that the SEF and ARATS begin talks soon on "direct cross-strait shipping," "joint exploration for oil and gas in the Taiwan Strait," "jointly fighting crime," "matters related to expanding personnel and cargo contacts between Kinmen-Xiamen and Matsu-Mawei via the 'Mini Three-Links'," "promoting exchange and cooperation on climate change and meteorological research," and "promoting exchanges and research on earthquake disaster prevention." Chairman Chen valued Chairman Chiang's concern for negotiation issues. The two sides agreed to promptly consider plans and progress steps for near-term negotiations on these issues. 

(2) The SEF and ARATS agreed to strengthen dialogue and exchanges between personnel at all levels, and to enhance liaison and contact between the two sides at all levels. They also agreed to establish a chairman-level and vice-chairman-level liaison mechanism and emergency contact persons (at the deputy secretary-general level) between the two sides; as well as to jointly promote exchange visits by SEF and ARATS directors and supervisors and personnel of related competent authorities in an advisory capacity. 

(3) During the meeting, Chairman Chiang formally invited Chairman Chen to visit Taiwan this year and hold a second round of talks. Chairman Chen agreed to visit Taiwan at an appropriate time. The two sides agreed to discuss arrangements through the SEF and ARATS. 

(4) The two sides agreed to officially resume the normal liaison mechanism between the SEF and ARATS, with the SEF and ARATS as the contact windows. 

3. Major Content of the Meetings

(1) Meeting between Chairman Chiang and Taiwan Affairs Office Director Wang Yi 

A. Chairman Chiang expressed hope that the two sides could jointly promote the normalization of cross-strait economic and trade relations. He also gave advise for Taiwanese businesspeople in mainland China to urge the mainland side to implement measures for protecting the rights and interests of Taiwanese businesspeople. In addition, Chairman Chiang mentioned the concern of the Taiwanese people over Taiwan's international space. He said that the mainland should help Taiwan to participate in international activities. 

B. Director Wang thanked the Taiwan side for its support after the Sichuan earthquake. He also noted that the resumption of talks between the SEF and ARATS symbolizes a new step towards the peaceful development of cross-strait relations. Cross-strait relations once again look promising and this is worth cherishing and upholding. He said that the mainland side would actively coordinate related agencies to create conditions beneficial for contacts, consultations and negotiations between the SEF and ARATS. 

(2) Meeting between Chairman Chiang and Mr. Hu Jintao 

A. Chairman Chiang noted that in cross-strait interactions, the two sides should adhere to the principle of "mutual respect and reciprocal negotiations," confront issues pragmatically and rationally, and jointly seek a truly effective course of resolution. "Peace and prosperity, mutual respect, building mutual trust, and jointly creating a prosperous future" are shared aspirations of the two sides. Chairman Chiang expressed hope that in future the two sides could support each other and cooperate in the international community. Regarding international space, Taiwan will take a pragmatic approach. Drawing on the examples of the World Trade Organization (WTO) and APEC, he expressed hope that Taiwan could pragmatically participate in international organizations, notably the World Health Organization (WHO). 

B. Mr. Hu Jintao observed that the resumption of talks after a nine-year break between the SEF and ARATS represents a major event in the course of cross-strait relations. Consultations and negotiations are necessary means to realizing the peaceful development of cross-strait relations. The agreements signed by the SEF and ARATS on cross-strait charter flights and travel to Taiwan will be conducive to expanding mutually beneficial cooperation across the Strait. Future talks between the SEF and ARATS should involve "equal negotiations, goodwill communication, the building of consensus, and pragmatic progress." Mr. Hu expressed hope that the SEF and ARATS would contribute to the peaceful development of cross-strait relations. As for the issue of international space, the two sides can work together to create conditions and further discuss this matter. 

IV. Significance of the Visit

1. This visit was a journey of rebuilding mutual trust between the SEF and ARATS after nine years without contact. Moreover, it symbolized the resumption of institutionalized negotiations and interactions between the two organizations and represented a starting point for resuming cross-strait relations. In these regards, the visit was highly significant. 

2. Because the two sides were able to shelve controversies, show mutual respect, and engage in reciprocal negotiations, the meeting was able to successfully produce two agreements and reach several points of consensus. If the SEF and ARATS can adhere to these principles, reduce the obstruction of political differences and gradually build up mutual trust, it will lay a solid foundation for the future of cross-strait relations. 

3. The "Minutes of Talks on Cross-Strait Charter Flights" and "Cross-Strait Agreement on Travel by Mainland Residents to Taiwan" signed during the meeting will support domestic economic development and contact between people on the two sides. The SEF and ARATS have also planned a course of future negotiations that could steadily resolve issues pertaining to the rights and interests of the people on both sides. 

4. The process and achievements of the meeting also met the high expectations of the international community for the resumption of dialogue between the two sides. This has concrete meaning and value in terms of promoting benign cross-strait interactions and easing regional tensions. 

5. The meeting set the principles and course for future negotiations and exchanges, as well as made initial arrangements for future negotiation issues. The SEF will continue to promote related matters and seize the progress of cross-strait talks to uphold the rights and greatest interests of the Taiwan side. 

V. Conclusion

This meeting has opened a new era for future cross-strait interaction and negotiations, laying a solid foundation for the gradual normalization of relations between the two sides. Over the short term, the interactions and liaison between SEF and ARATS are likely to steadily recover. It is also clear that the two sides will continue to plan issues for follow up negotiations. With government authorization, the SEF will promptly begin related planning and liaison work and strengthen various internal preparations so as to implement related affairs in future.