This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 TAIPEI 003859 
 
SIPDIS 
 
DEPARTMENT FOR INR/R/MR, EAP/RSP/TC, EAP/PA, EAP/PD - 
ROBERT PALLADINO 
DEPARTMENT PASS AIT/WASHINGTON 
 
E.O. 12958: N/A 
TAGS: OPRC KMDR KPAO TW
SUBJECT: MEDIA REACTION: TAIWAN'S ECONOMIC PROSPECT, 
U.S.-CHINA-TAIWAN RELATIONS 
 
 
¶1. Taiwan's Economic Prospect 
 
"Do Not Use [Reasons Like Taiwan's] Industry Outflow 
and Pro-China Attitude to Harm Taiwan's Credit Rating 
Again" 
 
The pro-independence "Liberty Times" editorialized 
(12/7): 
 
"It is regretful that while China's political and 
military threats have done serious damage to Taiwan 
already, Beijing is still using means like blocking 
Taiwan's participation in the World Health Organization 
or signing free trade agreements [with other countries] 
to isolate Taiwan.  Under such circumstances, some 
people in Taiwan not only forget that they should first 
reflect on themselves, but instead, some pro-China 
people or even some government officials try to promote 
policies that will strengthen exchanges with China, 
thus enabling China to have more channels to hurt 
Taiwan.  If Taiwan wants to improve its credit rating, 
it should first abandon these incorrect policies and 
ideas, so that the island can restore its confidence 
and strive to change Taiwan's credit rating back to 
`normal.'" 
 
¶2. U.S.-China-Taiwan Relations 
 
"U.S. Connivance with Taiwan Independence Is Dangerous" 
 
The conservative, pro-unification, English-language 
"China Post" commented in an editorial (12/7): 
 
"The discrepancy [between how Washington views Taiwan 
and how Taiwan people look at the island] suggests 
American hypocrisy and disrespect for the 1918 
Wilsonian principle of self-determination. 
 
"Denying the ROC as a sovereign state has helped 
legitimize Communist China's demand of Taiwan's return 
to its fold and encouraged separatists on the island to 
pursue non-Chinese statehood.  The two conflicting 
goals promise a military showdown to break the status 
quo sooner or later. 
 
"Washington doesn't want to be dragged into a war with 
China over Taiwan, but it is moving toward that 
eventuality by conniving at President Chen's insistence 
on more trappings of statehood. 
 
"While officially opposed to independence referendums, 
the U.S. virtually has given Chen a free hand to 
provoke China and whip up separatist sentiments.  In 
return, Washington only wants Taiwan to pay more and 
buy more advanced weaponry to beef up defense against 
mainland threats, starting an arms race between `a 
mosquito and an elephant.' 
 
"Apparently, Washington's China-Taiwan policy aims only 
at coping with the effect of the problem, not 
eradicating the cause.  As in soliciting Chinese 
collaboration in the anti-terrorist enterprise, the 
U.S. should have pressured Beijing to be more 
accommodating to Taiwan's wishes, and Taipei, less 
resistant to the `one China' principle. . 
 
"The rising tension in the strait has been prompted by 
the Chen administration's rejection of the `one China' 
principle, which is also a direct challenge to 
Washington's long-standing `one China' policy.  But the 
U.S. has also chosen to ignore it, as if defense 
cooperation between the protector and the protected 
could be built on policy contradictions. 
 
"And all Washington has done to check Chen's separatist 
moves is holding him accountable by reciting in public 
his `five-no' pledge of no independence plebiscite 
enshrined in his 2000 and 2004 inauguration addresses. 
But the Chen pledge only amounts to `no change in the 
status quo through referendums during his tenure.'  He 
never promised to respect the U.S. `one China' policy 
nor refrain from pushing separatist movements. 
 
"No wonder Taiwan's independence fundamentalists view 
the U.S. `one China' pronouncements as more lip service 
to placate Beijing.  And the U.S. language of `no 
support for' Taiwan independence is misinterpreted as 
`not opposed to' it.  Also no wonder Beijing has become 
increasingly suspicious about Washington's intentions, 
and is busy making preparations `to recover the island 
at all cost,' including a confrontation with the U.S. 
 
"With reckless leaders like [President] Chen [Shui- 
bian] and [former President] Lee [Teng-hui], a 
confusing mentor and protector like the U.S., and a 
paranoid enemy like Beijing, can Taiwan expect to be 
left alone in peace?" 
PAAL