Taiwan Stock Discussion

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Taiwan's president addresses the public as opposition tries to recall him

TAIPEI, Taiwan (AP) - Taiwan's president struck back Tuesday at the opposition's campaign to recall him, saying in a live TV address that his rivals were falsely accusing his wife of corruption and their bid to oust him had no merit.

President Chen Shui-bian worked his way through a long list of arguments the opposition has used to justify the campaign to sack him with two years left in his second term. The allegations include claims that Chen has mismanaged the economy and that his family is corrupt.

"Clean government is my highest principle,'' Chen said as he denied allegations that his wife, Wu Shu-chen, accepted gift vouchers from the Sogo department store.

"If my wife took Sogo vouchers, I promised I would step down. This promise will never expire,'' he added.

The president's wide-ranging evening TV address came a day before the legislature is to begin a debate over a possible referendum on whether he should be recalled. Lawmakers plan to vote on the issue on June 27.

Chen's troubles began last month with allegations that his son-in-law, Chao Chien-min, was involved in insider trading. Chao, a physician, was arrested on May 24 and the probe continues.

The president didn't say that Chao was innocent, but pledged that his son-in-law wouldn't receive preferential treatment as the investigation continues.

"Everyone is equal before the law,'' he said. Chen acknowledged that the economy hasn't been great, but said it's strong in many ways. He noted that exports and foreign exchange reserves were up, and that the jobless rate would likely fall below 4 percent in 2006.

"If the economy is not good, how come foreign investors want to be here?'' he asked.

Chen added that lawmakers should spend less time on political feuding and team up to improve the island's economic competitiveness.

"If we all can unite and forget about the political struggle, I believe the ratings will improve,'' he said.

The Constitution allows Chen to give a written statement to the Legislature defending his presidency. But he decided to speak directly to the public via television because he doesn't think the recall campaign is legitimate.

"I have decided not to issue a defense, but to speak to the people,'' Chen said. Opposition lawmakers _ who have only a slim majority _ aren't expected to muster the two-thirds majority needed to pass the motion for a referendum.

James Soong, one of the recall bid's main drivers, said Tuesday the campaign wasn't an attempt by him to grab more power. He said he would retire if Chen is recalled. "I'll pull out of politics,'' said Soong, leader of the minor opposition People First Party.

Uncertainty over the campaign against Chen hurt investor confidence on the island's stock market Tuesday, traders said. The Weighted Price Index of the Taiwan Stock Exchange fell 219.49 points, or 3.3 percent, to 6,363.55.

"People don't know how long this political back-and-forth will last,'' said Daniel Tseng, an analyst at Fubon Securities Investment Services in Taipei. - AP

http://thestar.com.my/news/story.asp?file=/2006/6/20/apworld/20060620214514&sec=apworld