"Our general tone is upbeat, with qualifications," said Richard R. Vuylsteke, executive director of the American Chamber of Commerce in Taipei (AmCham).

The Taiwan government currently appears to be devoting increased attention to important economic issues affecting international investors in Taiwan, Vuylsteke said in a statement.

He referred to a recent meeting between AmCham leaders with Taiwan Premier Yu Shyi-kun and ministers responsible for economic affairs, finance, transportation and communications, health and public construction.

"The talk was right," said Vuylsteke. "Now we are expecting it to see it followed up by real action."

The remarks come as a seven-member delegation being led by Andrea Wu, the AmCham president for 2004, visits Washington.

Each year, following publication of a Taiwan White Paper carrying recommendations for improving the business climate, AmCham arranges a briefing for US government officials, congressional offices and think tanks.

In the White Paper unveiled on June 1, AmCham pressed for direct links between the island and rival China, warning its future as a regional economic hub is at risk without such changes.

In the absence of the three "direct links" -- transport, trade and postal services -- multinational companies faced increasing problems in executing their business plans from Taiwan, it said.

Despite closer economic links across the Taiwan Straits, hostility between Taipei and Beijing has increased since the pro-independence President Chen Shui-bian took office in 2000.

TERRA.WIRE