Posted on 09/07/2001 4:32:43 PM PDT by Typhoon
LatelineNews: 2001-9-7] WASHINGTON - The United States is worried about reports of Chinese retaliation against U.S. banks in contact with Taiwan and has brought up its concerns with the Chinese government, the State Department said on Thursday.
"We are concerned about the matter. We've already raised it with the Chinese government," said spokesman Richard Boucher.
China warned on Tuesday it would not tolerate foreign companies pursuing "official" contacts with Taiwan, which Beijing considers to be a renegade part of its territory, Reuters reported.
The issue erupted last week after reports that Beijing cut Credit Suisse First Boston (CSFB) out of a lucrative underwriting deal apparently due to sensitivities over Taiwan.
Taiwan subsequently complained that Goldman Sachs Group Inc. and Merrill Lynch & Co. Inc. had both backed away from helping Taiwan hold a promotional investment tour in the United States for fear of upsetting Beijing.
A senior U.S. official said that the United States had seen a series of such reports and that the U.S. position was that financing operations in either China or Taiwan should be on a purely commercial basis.
The New York Times said on Thursday that U.S. ambassador Clark Randt decided not to attend an investment promotion dinner on Wednesday with Chinese officials, apparently in protest at the treatment of CSFB.
Boucher confirmed that Randt did not attend the dinner but declined to elaborate on his motives.
"We want to continue to find out from them (the Chinese) what their policy is and continue to discuss this," he added.
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