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Legislators respond to Boeing brouhaha

THE FLAP: Some DPP lawmakers suggested that China Airlines consider pulling out of its contracts with the company while the KMT criticized the Presidential Office

By Fiona Lu

STAFF REPORTER

A DPP lawmaker yesterday acknowledged that his party caucus was calling for a review on a contract signed last year between China Airlines and the US manufacturer Boeing Co.

"The DPP caucus presented the call to the government to review the contract since it was necessary after Boeing apparently failed to abide by the rule that business is business concerning its handling of a scheduled visit from Vice President Annette Lu," said DPP legislative whip Chen Chi-mai.

The government, as the biggest shareowner of China Airlines, has the right to reassess the deal, Chen said at a press conference yesterday morning.

"We would say that the contract could be reconsidered as a result of the government's finalizing a comprehensive assessment of maintaining a balance of the nation's business preferences and diplomatic interests," Chen said.

The legislative reaction came one day after Lu expressed dissatisfaction over the turnabout of a scheduled visit to the Seattle-based Boeing Co.

The giant US aircraft manufacturer offered to change the venue of Lu's visit from its office in Seattle to a separate port facility run by Boeing. Lu stopped in Seattle on her way back from her South American trip.

Lu said her staff did not have enough time to organize a visit to a separate venue.

Lu and the government believe that the unexpected change in plans was a result of Beijing's interference.

Lu, speaking at a dinner party in Seattle on Sunday evening, suggested that Boeing was making trouble for itself because the company may be jeopardizing a deal worth NT$69.6 billion (US$2 billion) with China Airlines.

But KMT lawmakers yesterday said that the government has just made another reckless diplomatic blunder.

The unpleasant treatment of the vice president exemplifies the DPP administration's carelessness in diplomatic work, said Lee Chia-chin, a KMT legislative caucus leader.

"The KMT caucus feels sorry for Lu's troubles and we demand that an investigation be opened into the conduct of either the Presidential Office or the Ministry of Foreign Affairs for the mishaps during the vice president's trip," Lee said.

He argued that Lu ought to partly shoulder the blame since it was not the first time that she has encountered trouble during an overseas visit.

Lee claimed that the vice president should have confirmed the itinerary with the US company before leaving for the trip.

The reckless departure, according to the lawmaker, made both the vice president and the country look bad.

"The vice president's last trip to Indonesia also caused trouble," Lee said.

Lee's remark was criticized by his DPP counterpart as "shameful."

"The KMT legislator's censure targeting the vice president and the foreign ministry instead of blaming Boeing's turnabout or China was arguable," Chen said

"The KMT should not fire at its countrymen in this case," Chen said.

China Airlines sends off protest letter

APOLOGY?: Boeing's vice president issued a statement saying that the company meant `no affront to Vice President Lu or the people of Taiwan'

By Joyce Huang

STAFF REPORTER , WITH BLOOMBERG

China Airlines Co, the nation's largest international airline, said it has sent a letter of complaint to Boeing Co after the US aircraft manufacturer canceled a plant visit for Vice President Annette Lu.

The airline, however, maintained a low profile yesterday, downplaying the possibility of revoking the Boeing order.

"China Airlines has followed through on the government's instructions and sent a protest letter to Boeing," a company official said yesterday.

The protest letter stated that, as an important customer to Boeing, China Airlines regretted Boeing's disrespect toward the vice president and demanded a reasonable explanation from the company, said the official, on the condition of anonymity.

Now that China Airlines has inked international contracts with Boeing, a unilateral move to nullify the deal may cost China Airlines a huge amount of legally obligatory compensation fees as well as Taiwan's future business reputation in the international community, a market watcher said yesterday.

"Poor manners to the vice president don't constitute a lawful excuse [for Taiwan] to unilaterally nullify the deal," said Mike Chow, a manager with Yuanta Core Pacific Securities Corp.

"Breaching any international contract now is sure to scare away the nation's future deal-makers, who dare not sign any contracts with Taiwan," Chow said.

Meanwhile, Boeing spokesman Mark Hooper said in a statement that, "Boeing intended no affront to Vice President Lu or to the people of Taiwan, who have been valued friends and customers for more than 30 years."

The planemaker also defended itself over a canceled visit by Lu to its Seattle plant.

``Rather than a short, private visit to Boeing, we felt the port visit would be a more appropriate and meaningful venue," Hooper said.

"The Port of Seattle visit offered a more robust and public event that includes other businesses in the area associated with Taiwan."

US aircraft manufacturer Boeing has canceled a visit to its Seattle facilities by Vice President Annette Lu at the last minute. Obviously the sudden change of schedule was not Lu's fault. Having been a leader of the global aircraft manufacturing industry for decades, Boeing certainly knows the political significance and consequences of canceling a visit by a country's vice president.

Since Boeing has opted to risk retaliation from Taipei for the sake of its economic interests elsewhere, it obviously does not care about Taiwan's dignity. Without mutual trust, it will be inappropriate for the government to continue its business relations with Boeing.

Is Boeing thinking of canceling the contract it signed with China Airlines (CAL) last year for the sale of 10 commercial jetliners? If it did, we believe neither the government nor CAL would demand inordinate amounts of compensation from Boeing. Apparently Boeing believes it can sacrifice Taiwan's market to secure larger economic benefits, so the immediate cancellation of the contract would be in both sides' interest. This will prevent more serious disputes -- whether political or commercial -- in the future. Such a clean-cut solution will also prevent further mutual suspicion and its endless undesirable consequences.

What's most deplorable about this incident is not the attitude of either Boeing or the US government. Rather, it is the infantile mentality exhibited by the pan-blue camp.

They do not believe the humiliation accorded to Lu is a humiliation for all Taiwanese. On the contrary, they claim that the incident was a result of what they call Lu's "erroneous" trip. Such an attitude is the root cause of the chaos facing politics in this country today.

The opposition may disagree with the government on many domestic policies, but Chen Shui-bian and Lu are elected leaders. They were elected by the people through a legal and democratic procedure. How can the blue camp not understand this simple and obvious reasoning? Anyone who shows disrespect to Chen and Lu is showing disrespect to Taiwan. It is shameful for the pan-blue camp to aim their guns at Lu at such a critical moment. It seems as if they are speaking for the Beijing regime.

Don't forget: the DPP cannot possibly stay in power forever. Any party has a chance to win power as long as it works hard to win the hearts of the people. If the pan-blue camp carries on with its vendetta, it will mean any president or vice president -- no matter which party they are from -- are likely to be trampled upon by the opposition parties in a similar manner. In fact, the opposition parties and pro-unification media have never been respectful toward Chen and Lu. Perhaps their erratic behavior and distorted reports have been the reasons why Boeing has treated Taiwan with such contempt.

People who do not respect themselves will be humiliated by others. The Boeing incident is perhaps a wake-up call for the Taiwanese. Where exactly does your loyalty lie? What stance do you take when a leader of your country is humiliated? It's time for the people to think about this question.