Taiwan’s Defense Department Against Manufacture and Investment in Mass Destruction Weapons

Legislature Bi-khim Hsiao asked the Ministry of National Defense about their attitude towards domestic financial institutions’ (Hua Nan Commercial Bank, Land Bank of Taiwan, E. Sun and Taipei Fubon) continued investment in the U.S. cluster bomb manufacturer ATK (Alliant Techsystems)

On 26 December 2013, during the Parliament questioning time, Deputy Defense Minister Andrew Hsia in the Legislative Yuan expressly pointed out that, although Taiwan is unable to sign onto the international conventions, based on a responsible member of the international society, Taiwan will not develop, neither produce, the mass destruction weapons which prohibited by the international treaties/conventions, including nuclear weapons. In the meantime, Taiwan’s financial institutions should comply with the relevant international norms and should not be involved in providing loans to or investing in the foreign arms companies which are in violation of any international conventions, or manufacturing mass destruction weapons.

[youtube http://youtu.be/UpaMSljPyLQ]

1212 “Stop Explosive Investments” Global Day of Action

Press Conference Media Release (12/12/2013)
“Stop Explosive Investments” Global Day of Action

Three Taiwanese Banks Asked to Stop Investments in Cluster Munitions Producer

December 12 is the “Stop Explosive Investments” Global Day of Action. Corner Link, Taiwan Labor Front, Taiwan Friends of Global Greens and Green Consumer Foundation, together with Legislature Bi-Khim Hsiao and Legislature Chiu-Chin Tien, host the press conference to ask Chang Hwa Commercial Bank, First Financial and Hua Nan Financial to stop providing loans to ATK (Alliant Techsystems Inc.) for producing cluster munitions.

Press Conference, Left to Right: Joyce Fu, Congresswoman Chiu-Chin Tien, Yu-Lian Son, and Han-Chiang Pan (Photo taken by Tzuying Wu)

A cluster munition is a form of air-dropped or ground-launched explosive weapons that releases or ejects smaller submunitions. Because cluster bombs release many small bomblets over a wide area, they pose risks to civilians both during attacks and afterwards. They cannot distinguish civilians from soldiers. In recent years, cluster munitions were still used in Afghanistan, Iraq, Libya and Syria. The unexploded rate could reach as high as 30%. Long after a conflict has ended, unexploded bombies can still kill or injure civilians, and most of them are kids. After 40 years of Vietnam War, Laos is still suffered from the cluster bombs dropped by the Americans.

According to “Worldwide Investments in Cluster Munitions: a shared responsibility”, in October 2010, ATK secured a US$1,000 million five-year credit facility, comprising a US$600 million revolver and a US$400 million term loan. Chang Hwa Commercial Bank, First Financial and Hua Nan Financial were parts of the syndicate of 20 banks and provided US$10, 10 and 15 millions respectively. According to ATK 2013 Q3 Financial Statement, as of 29 September 2013, Chang Hwa Commercial Bank has invested US$6.125 millions, First Financial US$6.125 millions and Hua Nan Financial US$9.1875 millions.

The Convention on Cluster Munitions entered into force on 1 August 2010 which prohibits all use, production, transfer and stockpiling of cluster munitions. As a responsible member of the international society, as well as CSR (corporate social responsibility) of the financial institutes, we ask these three Taiwanese banks to change their investment policy and promise not to invest in any cluster munitions producers in the future.

*Please check out the link to the video shown at the press conference. Thanks to Avis Chang for editing it.