NANJING: Taiwan hopes to sign a memorandum of understanding (MOU) on financial supervisory cooperation with the mainland in 60 days, Mainland Affairs Council (MAC) Vice Chairman Fu Dong-cheng said in Nanjing on Sunday.

He said an MOU will pave the way for implementing provisions of three agreements signed by the two sides.

Under the financial cooperation pact, Taiwan and the mainland have agreed to cooperate on a host of areas, including supervision of financial institutions and currency management.

The preliminary agreement also calls for the establishment of a cross-Straits currency clearance and settlement mechanism, allowing commercial banks to exchange currencies and jointly working together on developing technologies to spot counterfeit currency notes.

The agreement also seeks to allow financial institutions on both sides to establish branches in each other's market.

"It is hoped that the MOU and the cross-Straits financial cooperation pact will take effect simultaneously," said Fu, who was one of 22 Taiwan officials who took part in the third round of the cross-Straits talks.

Chiang Pin-kung, chairman of Taiwan's Straits Exchange Foundation (SEF), and Chen Yunlin, president of Beijing's Association for Relations Across the Taiwan Straits, signed the documents on behalf of Taiwan and the mainland, respectively.

The plan at the moment is to designate one or two banks from either side as currency and settlement banks.

Beijing has agreed to allow private investments to be made in Taiwan and encourages eligible mainland enterprises to make fact-finding tours to Taiwan.

China Daily/CNA

(HK Edition 04/28/2009 page16)