The FTC received a request for an explanation from the Ministry of Economic Affairs (MOEA). According to MOEA, it will contract out a project to build the Nankang Compound of the World Trade Center, including an exhibition hall, hotels, and other business and recreation facilities through a build-operate-transfer (BOT) scheme. MOEA is planning to write into the contract with the contractor that the operation of the exhibition hall shall be consigned to the China External Trade Development Council (CETRA) after its completion. MOEA asks whether such a contractual requirement is legal or not.

Based upon the FTC's investigation, CETRA was established by the government to support the government policies in promoting foreign trade, upgrading industries, and expanding foreign markets for local companies through arranging trade shows. The government, viewing the growing congestion in the present Hsinyi District Compound, is planning to establish the Nankang Compound of the World Trade Center. For a long period of time, CETRA has supported the government's trade, economic and industrial policies to sponsor professional shows with remarkable results and a solid track record in international exhibitions. MOEA, considering the need to have the operation of Nankang Compound fully in support of the government's policy, is considering consolidating the exhibition management for two compounds. For the sake of public policy, the government is considering appointing CETRA to operate the Nankang Exhibition Hall.

However, the Nankang Exhibition Hall will be constructed through funding from private industry. It is still uncertain whether the operation plan, objective, exhibition schedule, and rental of the exhibition hall will be decided by the MOEA or the winning bidder. If the bidder/contractor has the management power, can CETRA operate the Nankang Exhibition Hall in full support of the government's policy? This requires further study. MOEA might consider stipulating in contracts with winning bidders that the operation and scheduling of the exhibition hall must comply with the government's policy, and be subject to government review, which can still well meet the MOEA's goal of constructing an exhibition hall in Nankang.

The "priority appointment," referred to by the MOEA is not clear in terms of its definition and arrangement. What will be the relationship between MOEA, CETRA, and the private contractor with respect to the Nankang compound? Will this be a relationship of consignment or leasing? Does the supervising power belongs to MOEA or the winning bidder? Since there is a lack of clear and detailed arrangements, it is difficult to judge whether such a contractual requirement constitutes an improper restraint on trading counterpart or not. In view of this, the 356th FTC Commissioners Meeting on Sept. 2, 1998 just summarized the above mentioned opinions for MOEA to study in order to make its plan for Nankang Compound more comprehensive.