Anger eases in Taiwan, for now, after premier replaced
08 Sep 2009 04:48:40 GMT Source: Reuters
* More ministers expected to quit, but impact seen limited * Financial markets unaffected, stocks hit year high * Confidence in president still an issue after deadly typhoon By Ralph Jennings TAIPEI, Sept 8 (Reuters) - Public anger over the Taiwan president's handling of a deadly typhoon last month is expected to subside with the appointment of a China-savvy new premier known for decisive leadership. Taiwan's financial markets largely ignored President Ma Ying-jeou's decision to replace Premier Liu Chao-shiuan with ruling party official Wu Den-yih. Taiwan stocks <.TWII> rose to their highest in a year and the Taiwan dollar <TWD=TP> strengthened amid better-than-expected trade figures. "Investors anticipated a reshuffle, they wanted a reshuffle, because they were expecting someone more capable to lead the country," said Alex Huang, a research director at Mega International Securities Co. Analysts said public anger at what many saw as a poor response to Typhoon Morakot, the island's worst storm in 50 years, would likely ease. Morakot killed up to 763 people as it drenched the island from Aug. 7-9 and set off massive mudslides. Taiwan's 42-member cabinet has also offered to resign, but not all members are likely to be replaced and no changes to the government's foreign, China or economic policies are expected. [ID:nSP494665] [ID:nT49562] "Wu will show a new face to the public," said George Tsai, a political scientist at the Chinese Cultural University in Taipei. "He's more stern, more aggressive and he'd be more responsive to people's demands." Taiwan leaders typically replace top officials in response to criticism of the government. Ma's predecessor, Chen Shui-bian, changed premiers six times in eight years, seldom causing alarm. Ma's response to the storm has badly dented his popularity ahead of local elections in December. [ID:nTP255187] "Although anger has died down considerably, confidence has not been restored," said Joseph Cheng, a political science professor at City University of Hong Kong. "The handling of the entire incident exposes weaknesses of the Ma administration, his ability to command full control of the government machinery." NEW PREMIER WANTS MORE TRADE WITH CHINA Wu is expected to follow Ma's broader agenda of seeking peace with political rival China to shore up the island's flagging economy while satisfying foreign powers that want tensions eased. Wu, 61, is now ruling Nationalist Party (KMT) secretary-general and a legislator who earlier served as mayor of Kaohsiung, a major south Taiwan port city, for eight years. He said he advised Ma a day after the typhoon to declare a state of emergency, a suggestion that went unheeded. Described as a well-connected smooth talker, Wu said last month he was keen to push for more trade links with China but would hold off on political dialogue for a number of years while the two sides sought to build confidence. [ID:nPEK217256] "Goodwill is something that's got to be cumulative," Wu told Reuters in a recent interview. China has claimed sovereignty over self-ruled Taiwan since 1949, when Mao Zedong's forces won the Chinese civil war and Chiang Kai-shek's Nationalists fled to the island. Ma has worked with China since he took office in mid-2008 to establish trade and transit links. (Editing by Ken Wills and Dean Yates)
REFILE - REMOVING RESTRICTIONS Taiwan President Ma Ying-jeou (R), Vice President Vincent Siew (C) and Premier Liu Chao-shiuan observe a moment of silence during a mass memorial service for victims of ...
