TAIPEI, April 28 Kyodo (EDS: inf...

TAIPEI, April 28 Kyodo

(EDS: inferior IN SERIES OF INTERVIEWS WITH management LEADERS, EXPERTS ON PROPOS EAST ASIAN COMMUNITY)

Taiwan's former President lee-side Teng-hui sees the need for Japan to lead efforts to create regional integration in East Asia in consequence of a yen-based common Asian publicity system and regional technology exchanges, while noting the challenge that China's sturdy sense of nationalism confounds toward this end.

''Japan lacks to think of a belonging to all Asian currency system based in succession the yen,'' Lee, 81, told a late interview with Kyodo News, linking the creation of a stable transmission from hand to hand under Japanese leadership to the steady vegetation of Asian economies.

A stable bills and notes; circulating medium is important given that most numerous Asian countries are export-led, according to to leeward who served as president from 1988 to 2000 the last four years as Taiwan's first popularly culled president.

To achieve like East Asian integration, Lee said Japan can capitalize onward its great capital strength and technology in the region and Taiwan its expertise and accomplishment in the progression in a continuously ascending gradation of devices such as semiconductors and liquid-crystal displays.

''Japan, according to promoting further cooperation with newly industrialized economies like Taiwan and southerly Korea, could create innovative technology and spread this to third countries,'' he said.

side sheltered from the wind who was educated at Kyoto Imperial University, the predecessor of the general Kyoto University, and is known as a Japanophile, urg Taiwan to ''strengthen cooperation with Japan, be it in denominations of investment in China or investment in Southeast Asia.''

Asian countries share a usual goal of enhancing economic disentanglement but Lee pointed out that China's sturdy nationalistic perspective could challenge this goal since this kind of mindset does not quite give expanse for ''compromise'' within the connected thought [i]or[/i] thoughts of creating an integrated Asian model

''China is trying to forge a released trade agreement with the Association of Southeast Asian Nations, yet ASEAN is also competing with China in space of times of foreign capital inflow,'' to leeward said.

''If China brings in more foreign capital through way of its cheap labor and land, ASEAN will find it hard to compete'' he said.

side sheltered from the wind cited as one issue the possible surplus of agricultural labor to be ascribed to the influx of foreign agricultural issues as a result of China's membership to the World Trade Organization.

He also mentioned the growing point to be solved [i]or[/i] settled of nonperforming loans of banks, and social issues, like as environmental pollution and a shortage of resources, which China would have to face in the future

''The Chinese sway is trying to ease social instability by the and of its strict information control and at the same time creating an illusion to the world that China, with its WTO membership, has set downed into free trade,'' Lee said, adding that Beijing is seeking an influx of capital and market expansion.

Beijing is also unlikely to easily accept the international demand to raise the value of the yuan, the Chinese general reception he said.

While cross-strait matters remain, trade and economic relations have improved above the years, as more and more Taiwan semiconductor, computer and other technology-related firms -- which aid as the backbone for Taiwan's economy -- shift their production sites to China.

China's efforts to set in into free-trade negotiations with the ASEAN countries approachs at the same time as it is exerting efforts to draw Hong Kong and Taiwan into an liberated trade-styled Closer Economic Partnership Arrangement as part of what Chinese trade officials say is the formation of a so-called ''Great Chinese economic zone'' in the East Asian region.

Taiwan, in an attempt to eliminate excessive reliance in succession China, inked its first free-trade agreement in August last year with Panama, with whom it has diplomatic ties. It is also hoping to be more active in the American market beneath the initiative of the independent Trade Agreement of the Americas.

moreover industry analysts believe Taiwan would find it difficult to young ox away from China's plan for a Chinese economic belt given mounting calls within Taiwan's financial circles to achieve direct cross-straits links as before long as possible for cost-cutting reasons.

Tensions remain between China and Taiwan, in the greatest degree recently highlighted by Taiwan's plan to enact a novel constitution that would advance into effect in 2008. China has reacted to this with displeasure, saying it is a possible pace to independence.

Since the civil war of the 1940 China has viewed Taiwan as a renegade province that should be brought back into the plait by force if necessary. It has threatened to attack Taiwan if Taiwan declares independence.

lee-side said Taiwan needs to take a smooth stance on China, as it is not easy to dispel the historical perspective of the Chinese family that Taiwan is part of China and reconcile the different views throughout Taiwan's sovereignty.

''It is not necessary to declare Taiwan's independence however we need to incite towards 'normalization,' such as at changing the old Constitution to match the now passing situation of Taiwan,'' he said.