VZCZCXRO1409
RR RUEHCN RUEHGH RUEHVC
DE RUEHIN #0308 0390551
ZNR UUUUU ZZH
R 080551Z FEB 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 4042
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHOO/CHINA POSTS COLLECTIVE
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC

UNCLAS TAIPEI 000308 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PASS USTR 
STATE FOR EAP/ TC, EAP/EP 
COMMERCE FOR 3132/USFCS/OIO/EAP/WZARIT 
TREASURY FOR OASIA/LMOGHTADER 
USTR FOR STRATFORD, ALTBACH 
 
E.O. 12958: N/A 
TAGS: ECON ENRG EWWT PREL CH TW
SUBJECT: Two State-Owned Enterprises to Drop "China" from Name 
 
 
¶1. (U) Summary: Chinese Petroleum Corporation (CPC) and China 
Shipbuilding Corporation (CSBC) announced on February 1 that they 
would change their names to "CPC, Taiwan" and CSBC, Taiwan."  CPC 
and CSBC have estimated the cost of the change at US$2 million and 
US$600,000, respectively.  They are the first state-owned 
enterprises to change their names under the Chen administration's 
"name rectification" campaign.  Opposition politicians have 
criticized the changes as a waste of money with purely political 
motives.  End summary. 
 
¶2. (U) Chinese Petroleum Corporation (CPC) and China Shipbuilding 
Corporation (CSBC), both majority owned by the Taiwan authorities 
(i.e., state-owned), announced on February 1, 2007 that they would 
change their names to replace references to "China" with "Taiwan." 
They are the first state-owned enterprises (SOEs) to announce such a 
change.  Their new English names will be "CPC, Taiwan" and "CSBC, 
Taiwan."  CPC's and CSBC's Chinese names (in standard pinyin) will 
change from "Zhongguo Shiyou" to "Taiwan Zhongyou" and "Zhongguo 
Zaochuan" to "Taiwan Guoji Zaochuan," respectively.  The name 
changes still require approval by the two company's respective 
boards of directors, but few expect the boards to reject the 
proposed changes. 
 
¶3. (U) To preserve brand identity and minimize costs associated with 
the name change, CPC and CSBC have both indicated that company 
trademarks and logos in English will not change.  Domestically, 
signs and Chinese-language documentation will be changed gradually. 
Because CPC will preserve the Chinese short-hand designation of 
"Zhongyou" in its name, it may be able to further limit costs.  CPC 
and CSBC estimate expenses for the name changes to total NT$70 
million (US$2 million) and NT$20 million (US$600,000), respectively. 
 
 
¶4. (U) The Chen administration first publicly called on Taiwan 
state-owned enterprises (SOEs) to "rectify" their names in December 
¶2004.  At the time, there was no mandatory order, but SOEs were 
asked to change their names within a two-year period (2005-2006). 
President Chen also called for the names of Taiwan's representative 
offices overseas to be changed.  Taiwan's semi-official trade 
promotion agency changed its name in January 2004 from "China 
External Trade Development Council (CETRA)" to "Taiwan External 
Trade Development Council (TAITRA)."  More recently, Taiwan 
authorities changed the name of Chiang Kai-Shek (CKS) International 
Airport to Taiwan Taoyuan International Airport in September 2006. 
 
 
¶5. (SBU) The Chen administration has argued that changing the names 
of SOEs will eliminate confusion with PRC entities as well as 
promote the "Taiwan" name internationally.  Opposition pan-Blue 
legislators have criticized the decisions as a waste of money for 
purely political motives.  A CPC executive once characterized the 
name change campaign to AIT as driven by ideology, dismissing any 
economic justification for the change. 
 
¶6. (U) CPC and CSBC are among six state-owned enterprises targeted 
by the Taiwan authorities for name changes.  The other four firms 
are the Export-Import Bank of the Republic of China, Chunghwa Post 
Co., Chunghwa Telecom Co. (CHT), and Central Trust of China (a 
state-owned bank).  China Airlines has also been identified as a 
possible candidate.  The airline is reportedly considering changing 
its name to "Taiwan Airlines" or "Formosa Airlines" but has 
expressed concern that renaming itself "Taiwan Airlines" could 
affect its landing rights in Hong Kong, one of its most profitable 
routes. 
 
YOUNG