AIT-CCNAA BANKING AND SECURI-
TIES CONSULTATIONS
MAY 1,1991
MINUTES
Securities
1. Securities Promotion Guidelines
AIT raised its concerns regarding restrictions on the market-
ing of offshore mutual funds. CCNAA expressed concern that f-
raudulent promotions must be effectively policed. AIT and CC-
NAA agreed that developing a regulatory structure that would
adequately police fraudulent sales promotion schemes within
the territory represented by CCNAA the regulation of would e-
nhance the offshore mutual funds.
2. Restrictions on Foreign Institutional Investment in the Stock
Market
AIT raised its concerns regarding ceilings on foreign invest-
ment in the stock of each issuer and on aggregate foreign in-
vestment, restrictions on the entry and repatriation of inve-
stment capital and earnings, and the requirement to place or-
ders through local brokers. CCNAA stated that its goal is to
ensure the orderly entry of foreign investment, and indicated
its desire to ease these restrictions as market development
permits.
3. Securities Branches for Foreign Firms
AIT stated that qualifying criteria based on paid-in capital
and assets excludes qualified foreign firms. CCNAA stated th-
at two foreign securities branches had been approved in Febr-
uary 1990. CCNAA indicated its intention to evaluate the iss-
ue, including the levels of initial capital, as relevant rul-
es are tested over the near future.
4. Private Pension Fund Management
AIT expressed its concern that foreign firms are not permitt-
ed to manage private pension funds, and noted that foreign a-
dvisors are permitted to manage pension funds in the territo-
ry represented by AIT. AIT urged CCNAA to explore the possib-
ility of opening this market to foreign firms. CCNAA stated
that pension management is not regarded as securities busine-
ss in the territory represented by CCNAA. AIT asked CCNAA to
clarify the appropriate regulatory authority for such activi
ties.
5. Registration of Foreign Securities
AIT suggested that to avoid the difficulties inherent in the
registration of foreign securities in the territory represen-
ted by CC NAA, CCNAA consider the development of American De-
pository Receipt-like instruments. CCNAA replied that the de-
velopment of Taiwan Depository Receipts (TDRs) as a means of
dealing with this issue should be studied.
6. Other Issues
AIT and CCNAA agreed to postpone the discussion of new secur-
ities investment trust licenses and the settlement time for
securities transactions until the next consultation.
There was no agreement on establishment of a timetable market
internationalization.
(Signed)

July 8, 1991
Mr. C. S. Pan
Director, Economic Division
Coordination Council for
North American Affairs
4301 Connecticut Avenue, NW
Suite 420
Washington, DC 20008
Dear Mr. Pan:
I refer to your letter of June 13 with which you enclosed a rev-
ised draft of the Securities portion of the Minutes of the AIT-
CCNAA Banking and Securities Consultations held on May 1, 1991.
I have discussed the latest draft with the authorities concerned
,and they suggest two further changes in paragraphs 1 and 6. A
new draft is enclosed.
Please review the new draft. If it is acceptable to the CCNAA s-
ide, I will have two originals prepared for initialing.
Thank you for your continuing cooperation.
Sincerely,
(Signed)
Clarke N. Ellis
Deputy Managing Director
Enclosure :
As stated.

July 31, 1991
Mr. Clarke N. Ellis
Deputy Managing Director
American Institute in Taiwan
1700 North Moore Street, #1700
Arlington, VA 22209
Dear Mr. Ellis:
I wish to refer to your letter of July 8,1991 regarding your fu-
rther two changes in paragraphs 1 and 6 of our revised draft of
the Securities portion of the Minutes of the AIT-CCNAA Banking
and Securities Consultations held on May 1, 1991.
Our authorities concerned have agreed to the two changes sugges-
ted by you. Please, accordingly, send us two originals of the M-
inutes for initialing.
Thank you for your continuing cooperation.
Sincerely yours,
(Signed)
Chia-sheng Pan
Director

September 3,1991
Mr. C.S. Pan
Director,
Economic Division
Coordination Council for
North American Affairs
4301 Connecticut Ave., N.W.
Washington, D.C. 20005
Dear Mr. Pan:
I refer to the AIT Consultations on Securities matters that were
held on May 1, 1991. I have now prepared two originals of the M-
inutes of those Consultations which have been initialed by the
AIT side. Please have both copies initialed by the appropriate
officials on the CCNAA side and return one original to me for o-
ur records.
Thank you for your continuing cooperation.
Sincerely,
(Signed)
Clarke N. Ellis
Deputy Managing Director
Enclosures: As stated.
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