01/25/2005, 00.00
TAIWAN - CHINA
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Frank Hsieh named as new Taiwan premier

Taipei (AsiaNews/Agencies) - Taiwan's President Chen Shui-bian announced on Tuesday that former Kaohsiung city mayor Frank Hsieh would be the island's new premier, a day after the cabinet resigned following disappointing election results.

Former premier Yu Shyi-kun and his cabinet resigned on Monday following the ruling Democratic Progressive Party's (DPP) defeat in December's parliamentary election.

A cabinet led by Mr Hsieh - regarded as a practical and moderate figure - is expected to be more conciliatory towards the opposition.

Local media have also suggested Mr Hsieh would be more willing to engage the opposition in the government's policy deliberations as premier.

On Monday, Taiwanese President Chen Shui-bian stopped short of confirming whether Mr Hsieh would be the new premier, saying he would make an announcement this morning.

In Taiwan, the president has the power to appoint the premier, who in turn names others to the cabinet after discussions with the president.

Mr Hsieh, 58, is a former lawmaker and head of the ruling Democratic Progressive Party.

The opposition alliance of the Kuomintang and People First Party, which will retain its majority in the new legislature, bickered with Mr Chen's government throughout its first term. The war of words heated up after the alliance was narrowly defeated in last year's presidential election - a race the opposition claimed was riddled with fraud.

Government sources said Mr Yu would probably be re-appointed as Mr Chen's secretary-general, a post he held before becoming premier in February 2002.

Taiwanese media said Mr Chen was likely to keep Mainland Affairs Council chairman Joseph Wu Jau-shieh, Foreign Minister Mark Chen Tan-sun and Defence Minister Lee Jye in their posts.

But none of those named were willing to say whether they would stay on. Justice Minister Chen Ding-nan has said he plans to vacate the post and run in local government elections in Ilan in northeastern Taiwan at the end of the year.

On Monday, in a farewell speech following the cabinet's resignation, Mr Yu said he was satisfied with his work during his time as the premier.

"Today's resignation marks the perfect end for my three-year term. It is my greatest honour to have had the chance to lead the cabinet team in making contributions [to Taiwan]."

Despite a global downturn between 2000 and 2002, Mr Yu said Taiwan's economic growth rate had improved greatly, to a projected 5.93 per cent increase last year compared with a decline of 2.22 per cent in 2001.

The unemployment rate had fallen to 4.44 per cent last year from nearly 5 per cent in 2001.

He said this had all been achieved despite repeated opposition obstruction.

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