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Health minister resigns over premium dispute

Department of Health Minister Yaung Chih-liang (楊志良) tendered his resignation in a shock move yesterday, saying he could not fulfill Premier Wu Den-yih’s (吳敦義) request that 75 percent of the insured be exempted from a proposal to increase national health insurance premiums.

Wu rejected Yaung’s resignation late last night, however. Executive Yuan spokesman Johnny Chiang (江啟臣) said the premier hoped Yaung would stay in the position.

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China sees bank risks in local-government financing

Chinese central bank Governor Zhou Xiaochuan (周小川) said that local-government financing vehicles using land as collateral may pose risks for the nation’s banks.

“When land prices rise, there may be over-valuation of land,” Zhou said at a press briefing in Beijing yesterday. “In the future, if land prices fall, there may be a difference in the assessment of the loan.”

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Newsflash

The American Institute in Taiwan (AIT) yesterday confirmed to the Taipei Times that US authorities are assisting Taiwan with an investigation into the activities of General Lo Hsien-che (羅賢哲), who was arrested last month on suspicion of spying for China.

Lo’s espionage activity, described as possibly the worst spy case to hit Taiwan in the past half century, is believed to have begun in 2004 when he was recruited by Chinese intelligence while he was posted in Thailand. News of the arrest sparked fears that Taiwan’s military might have been severely compromised, especially its command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) systems, to which Lo is believed to have had access.