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

UNCLAS SECTION 01 OF 03 TAIPEI 002621 
 
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: Cross-Strait Relations 
 
¶1. Summary: Taiwan dailies June 15 were dominated by the 
Michael Jackson trial as well as the domestic issue of 
taxation. The centrist, pro-status quo "China Times" carried 
a banner headline on its front page that read: "In 
Opposition To The Government's Plan To Tax The Rich, Foxconn 
CEO Terry Guo Criticized The Government of Communism." 
 
¶2.  In terms of editorials and commentaries, three 
editorials commented on Premier Frank Hsieh's plan to 
authorize civilian organizations to carry out negotiations 
with China.  The pro-independence "Liberty Times," Taiwan's 
largest daily, cautioned the government that three issues in 
Premier Hsieh's plan compose a "poisonous apple" that would 
hurt Taiwan in the long run.  The pro-independence, English- 
language "Taipei Times" also took a similar position, and 
editorialized that the consequences of allowing Chinese 
tourists to visit Taiwan might have negative consequences. 
However, the centrist, pro-status quo "China Times" said in 
its editorial that Premier Hsieh's announcement showed that 
the government is finally attempting to regain power on 
cross-Strait issues. 
 
¶3.  The limited circulation, pro-independence, English- 
language "Taiwan News" editorialized that the appointment of 
Chang Chun-hsiung as the new SEF chairman could offer a new 
start on cross-Strait relations. 
 
¶4.  The limited-circulation, pro-unification, English- 
language, "China Post" said in its editorial that the 
passage of the U.S. arms procurement bill could strengthen 
president Chen Shui-bian's will for Taiwan independence. 
End summary. 
 
A) "The Government Should Never Swallow The Poisonous Apple 
Coated With Syrup" 
 
The pro-independence "Liberty Times" [circulation: 
800,000](06/15) editorialized: 
 
". The government wants to carry out negotiations with China 
regarding the issues that would facilitate cross-Strait 
cargo flights, export of Taiwan agricultural products to 
China, and permission for Chinese tourists to visit Taiwan. 
The reasons that the government gives are in fact the same 
as those who suggested moving Taiwan industries to China. 
However, to sum up the lessons that Taiwan learned in the 
past with regard to moving Taiwan industries to China, we 
must candidly point out that even if there were some `minor 
favors and forgiveness' in these policies, the impact on 
Taiwan's overall development would be that Taiwan would have 
only `short-term gains, but not long-term ones.'  First, 
facilitation of cross-Strait cargo would help Taiwan 
merchants reduce their operating costs in China in the short 
run.  More Taiwan merchants, however, would move to China in 
the long run.  Second, when Taiwan agricultural products 
initially enter the Chinese market, Taiwan fruit might enjoy 
a glamorous time, but the long-term negative impact is that 
Taiwan's agricultural techniques would flow to China, and 
China would dump its cheap agricultural products in Taiwan. 
As for the policy that allows Chinese tourists to visit 
Taiwan, it might immediately help Taiwan's domestic tourism 
market to prosper.  In the long run, however, China would 
control Taiwan's service industry in the way that China has 
controlled Taiwan's manufacturing industry.  Moreover, 
Chinese tourists would frequently stay illegally and collect 
intelligence.  Opening Taiwan's market to Chinese tourists 
would create a channel for Chinese stowaways and special 
agents to enter Taiwan legally.  To sum up, the three gifts 
that China has sent KMT Chairman Lien Chan and PFP Chairman 
James Soong are definitely not `great gifts,' but a 
poisonous apple coated with syrup; the government should 
never swallow it." 
 
B) "The Mechanism of Double Authorization That Has Been Put 
Aside For Two Years Would Finally Be Started" [PAS note: 
double authorization refers to authorization from both the 
government and the Mainland Affairs Council.  The popular 
understanding of this term is "re-entrusting".] 
 
The centrist, pro-status quo, "China Times"[circulation: 
600,000](06/15) editorialized: 
 
". To some extent, the announcement of this policy [that 
authorizes Taiwan civilian organizations to carry out 
negotiations with Chinese counterparts regarding cross- 
Strait cargo flights, the sale of Taiwan agricultural 
products to China, and allowing Chinese tourists to visit 
Taiwan] also shows that the Taiwan authorities are 
stealthily adjusting the cross-Strait policy toward a 
`pragmatic' direction.  It is clear that if they do not 
adjust their policy toward China, the Taiwan authorities 
will sink themselves into a more passive situation regarding 
their ability to lead cross-Strait affairs. . 
 
"The announcement to initiate three mechanisms of double 
authorization clearly indicates that the authorities have 
finally learned that they have to retain the power to lead 
cross-Strait affairs. ." 
 
C) "There's More To Tourism Than Cash" 
 
The limited circulation, pro-independence, English-language 
"Taipei Times"[circulation: 30,000](06/15) editorialized: 
 
". Contact with China is of course beneficial, especially in 
the economic sense.  But the key issue here is that China is 
a country with a planned economy.  Its private sector can be 
manipulated by the government.  Moreover, policy decisions 
often depend on the whim of officials.  This makes the risks 
very significant. 
 
". Although being open to China can generate tourism 
revenue, these countries have also paid a high price in 
other ways.  Is this a burden that Taiwan wants to assume? 
." 
 
D) "New SEF Chairman Offers New Start" 
 
The limited circulation, pro-independence, English-language 
"Taiwan News"[circulation: 20,000](06/15) editorialized: 
 
". The appointment of a new SEF chairman could offer a new 
beginning for cross-Strait negotiations. 
 
"Although President Chen does not accept the so-called 
`consensus of 1992,' the president has repeatedly affirmed 
his recognition of the outcomes of the October 1992 SEF- 
ARATS meeting in Hong Kong and the opening for the 
subsequent process of `practical talks' that the `Hong Kong 
spirit' of setting aside the prickly issue of sovereignty 
generated. 
 
"Chen's position indicates that the DPP government will not 
evade what the KMT had promised in the Hong Kong meeting, 
but also that the DPP administration will not overly 
misinterpret the outcome as a `consensus' and specifically 
not as a `consensus' on any form of a `One China' principle. 
. 
 
"At best, we may be able to hope for a return to the 
pragmatic spirit reflected in the discussions for lunar New 
Year cross-Strait charter flights to resurface. . 
 
"But our government mist also firmly uphold its core 
principles and avoid unnecessary concessions that could be 
seen as compromising our independent and equal status. . 
 
"At this moment, and especially with Washington putting 
pressure on PRC leaders to engage in dialogue with Taiwan's 
elected government, Beijing authorities may be ready to 
accept more positive proposals for boosting cross-Strait 
exchanges. 
 
"The DPP government also can test the waters by proposing 
small but positive projects which can be accepted by the PRC 
but which will also not undermine Taiwan's complaints about 
anti-session law.  Examples could include easing barriers 
for the entry of PRC journalists or even businesspersons. ." 
 
E) "Arms Procurement Issue Must Be Put Into Perspective" 
 
The limited circulation, conservative, pro-unification, 
English-language, "China Post" [circulation: 30,000](06/15) 
editorialized: 
 
". [T]here has been widespread public resentment toward the 
procurement plan as a result of President Chen Shui-bian's 
shameful maneuverings on the project both before and after 
the 2004 election to gain political advantage at the expense 
of his opponents. 
 
"It also needs to be noted: Chen used the proposed weaponry 
purchases, which he claimed were imperative to protect 
Taiwan from the increasing PRC threat, to justify his push 
for the conduct of an unprecedented referendum alongside the 
presidential election. . 
 
"Such being the case, the Washington figures' criticism of 
the opposition parties' objections as a reflection of their 
hostility toward president Chen himself was not only biased 
and misleading.  They also run the risk of interfering in 
Taiwan's internal politics. 
 
". [T]he real security risk now facing this island is 
stemming from within Taiwan itself.  Nowadays, the issue of 
independence is no longer simply political advocacy.  It has 
become a real policy being pursued by a government headed by 
hard-line politicians and officials. 
 
"Under such circumstances, any new plan to increase defense 
investment would amount to effort to render greater 
protection of the independence movement. . 
 
"If Washington really wants to defuse the cross-Strait 
tension, it needs to act in a more effective way.  Its 
current policy does not seem to be helpful.  One the one 
hand, Washington maintains a One-China policy and does not 
support Taiwan independence.  But at the same time, it 
allows itself to build a de facto military alliance with 
Taipei, providing a virtual umbrella for the independence 
cause."