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 000205 
 
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 COVERAGE OF CONGRESSMAN LANTOS' VISIT TO 
TAIWAN 
 
¶1. Summary: In an availability with selected representatives 
of the media in Taiwan, Rep. Tom Lantos (D-CA) voiced strong 
concern over Taiwan's failure to pass a special budget for 
arms procurement from the United States. 
 
¶2. The issue and Lantos' remarks were covered by nine major 
international and local newspapers the next day. "The Asian 
Wall Street Journal" and "Financial Times" highlighted the 
criticism about Taiwan's shrinking military spending, while 
most Taiwan newspapers focused on Chen's promise for the 
passage of the special budget even though the opposition 
parties have vowed to boycott it. Excerpts of the news 
articles follow: 
 
A) "U.S. Lawmaker Criticized Taiwan Over Arms Budget" 
 
Jason Dean wrote in "The Asian Wall Street Journal" (1/18): 
 
"Taiwan received a rebuked from one of its strongest 
supporters in the U.S. Congress, who said the island's 
failure to move more aggressively on defense spending is 
hurting its image in Washington. 
 
"Tom Lantos, a Democratic representative from California, in 
Taiwan as part of an Asia tour, said the island's dwindling 
defense spending in recent years was `absurd' when China has 
steadily ratcheted up military spending. 
 
"`This is a wealthy society,' Mr. Lantos said at a news 
conference yesterday, citing Taiwan's $242 billion in 
foreign-exchange reserves, `and apparently it is incapable 
of deciding to spend $18 billion on its own defense. This 
makes no sense on Capital Hill.'" 
 
B) "Taipei's Defense Bill Criticized by U.S. Ally" 
 
Kathrin Hille wrote in the "Financial Times" (1/18): 
 
"One of Taiwan's strongest supporters in the U.S. has 
publicly blamed the island of spending far too little on 
defense, in a further sign that support in Washington for 
guaranteeing Taiwan's security against China is eroding. 
 
"Mr. Lantos said concern over the island's failure to beef 
up its defences had become widespread. Officials said he had 
expressed a clear warning that is was getting ever harder 
for friends of Taiwan on Capitol Hill to lobby the 
administration for support." 
 
C) "Chen Claims Arms Procurement Budget Will Pass, 
Opposition Party Dismisses the Expectation" 
 
The pro-status quo "China Times" reported (1/18): 
 
"Is the light penetrating through the cloud after the United 
States made its own lobby efforts? When meeting with U.S. 
Congressman Lantos, President Chen Shui-bian said James 
Soong, chairman of the opposition People First Party, no 
longer opposed to Taiwan's arms procurement plan after 
communications [with the U.S. side] during a visit to 
Washington D.C.  Chen said, `It is something to be happy 
about." He believed the three special budgets for arms 
procurements will win approvals from the legislature in the 
first half of this year." 
 
D) "President Chen Receives Lantos, Calls for Formation of 
Taiwan-U.S. Value Alliance" 
 
The pro-independence "Taiwan Daily" reported (1/18): 
 
"President Chen Shui-bian met with U.S. Congressman Lantos 
and mentioned the issue of arms procurement. Chen said the 
election was already over and he was please to hear that PFP 
Chairman James Soong would not oppose the arms deal.Chen 
said he hopes the U.S.-Taiwan relations will be improved and 
that the two countries will form a `value alliance.'." 
 
E) "Taiwan Treated Badly, Visiting U.S. Congressman Says" 
 
The pro-independence, English-language "Taipei Times" 
published a Central News Agency story (1/18): 
 
".Tom Lantos said that the so-called civilized world 
continues to treat Taiwan's leaders as second-class 
citizens, authorizing them only transit stops in their 
countries. 
 
"They should receive proper visas and should be allowed to 
enter the U.S. whenever and wherever they choose, he said." 
 
PAAL