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 003178 
 
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: While the major Chinese-language Taipei 
dailies continued July 28 to focus their coverage on 
the game-rigging/player-bribery scandal in Taiwan's 
Professional Baseball League, they also reported on the 
outbreak of a deadly but unidentified disease in 
Sichuan, the escalating incidence of avian flu in the 
region, and Taiwan's Han Kuang No. 21 military 
exercises.  The pro-independence "Taiwan Daily" ran an 
article on its front page concerning the exercise as 
well as a seminar held in Washington, DC, on the recent 
Pentagon report on China's military strength.  The 
headline for this article read: "U.S. military 
specialists: Taiwan should enhance its defense 
capabilities to prevent [the possibility that U.S. 
forces] might not be able to come to Taiwan's aid in 
time."  The sub-headline added: "If [Taiwan] loses its 
capability to resist immediately after it is attacked, 
it would be difficult for the United States to turn the 
situation [around for the better].  [Taiwan President] 
Bian observed the `Han Kuang military exercises' and 
requests again [that the Legislative Yuan pass] the 
arms procurement bill." 
 
In the wake of President Chen's remarks made about 
cross-Strait relations during a video conference with 
members of the Foreign Correspondents Club of Japan 
July 26, all the major Chinese-language newspapers 
reported in their inside pages July 28 that Premier 
Frank Hsieh has already instructed the Mainland Affairs 
Council to review cross-Strait economic and trade 
collaboration projects as soon as possible to implement 
President Chen Shui-bian's policy of "effective 
management."  The centrist "China Times" carried a news 
story that was topped with the headline: "Cabinet: [The 
government] will retreat if it fails to effective 
manage its westbound [policy]." 
 
¶2.  In terms of editorials, several pro-independence 
newspapers continued to editorialize on Chen's remarks 
in the videoconference on the cross-Strait ties.  An 
editorial of the pro-independence "Liberty Times," 
Taipei's biggest daily, said President Chen has 
promoted the concept of "a new balance of power across 
the Taiwan Strait" to the international community to 
mean that both sides of the Taiwan Strait are already 
"one country on each side" and the lie of "one China" 
has been shattered.  A "Taiwan Daily" editorial echoed 
Chen's call for "effective management" of Taiwan's high- 
tech industry's investment in China, saying that the 
economic and trade exchanges across the Taiwan Strait 
must be cooled off.  An editorial in the limited- 
circulation, pro-independence, English-language "Taipei 
Times" criticized the Pan-Blue Camp for blocking the 
arms procurement bill that would help to strengthen 
Taiwan's defense capabilities.  End summary. 
 
A) "[The Establishment of] `A New Balance of Power 
Across the Taiwan Strait' Must Be Based on Sovereignty" 
 
The pro-independence "Liberty Times" [circulation: 
800,000] editorialized (7/28): 
 
". [President Chen Shui-bian's] advocacy of the concept 
of `a new balance of power across the Taiwan Strait' is 
a proclamation to the international community that it 
is an existing fact that both sides of the Taiwan 
Strait are already `one country on each side [of the 
Strait]' and shatters the lie of `one China.'  In the 
meantime, it has instilled the [concept] of `democracy' 
into Taiwan's independent sovereignty and highlighted 
[the fact] that not only do the sovereignties of both 
sides of the Taiwan Strait not belong to one another, 
but also the differences in their systems are [that of] 
a barbaric communist totalitarianism versus civilized 
democracy and freedom.  In other words, the conflicts 
between China and Taiwan are not only disputes between 
sovereignties of two countries, but it also involves 
conflicts between two sets of different values and 
systems.  As a result, [the fact that] Taiwan is 
threatened by China is in essence similar to the fact 
that the global democratic community is threatened by 
communist China.  In addition, China's [expansive] 
military capability is stretching [beyond the region] 
to cover India, Russia, the entire territory of the 
United States, and other Asian-Pacific countries such 
as Australia and New Zealand.  This has all the more 
proven that China's rise is a non-peaceful one and 
constitutes a serious threat to global peace and 
stability. 
 
"It is a fact that given the gap between the national 
strengths of Taiwan and China, Taiwan must work with 
democratic countries like the United States, Japan and 
the European Union in order to resist China's 
aggressiveness [aimed at] annexing the island.  The 
concept of `a new balance of power across the Taiwan 
Strait' as advocated by President Chen will connect 
`Taiwan's democracy' and `cross-Strait peace' together, 
and by the same token, link Taiwan's safety with the 
stability and development of the global democratic 
community.  Chen's well-intentioned move deserves [our] 
support and compliments.  The purpose of his doing so 
was because Taiwan, in the face of China's military 
threats, does not only defend itself but is also 
serving as a strong pillar for the global democratic 
community [in the] fight against the Communism of 
centralized authority. ." 
 
B) "China Coerces Taiwan Businessmen [on the Mainland] 
to Serve as Tools of Its United Front Tactics in an 
Attempt to `Manipulate [the Taiwan] Government via Its 
Businessmen], So the Trade Activities across the Taiwan 
Strait Should Be Cooled off" 
 
The pro-independence "Taiwan Daily" [circulation: 
150,000] wrote in an editorial (7/28): 
 
". This newspaper agrees with President Chen's 
proclamatory remarks.  The Beijing government, 
following the enactment of the `Anti-Secession Law' in 
particular, has used every depraved means it can to 
coerce Taiwan businessmen on the mainland to become the 
tools of its United Front tactics in an attempt to 
`manipulate [the Taiwan] government via its 
businessmen.'  Taiwan, of course, must no longer have 
this wishful thinking or fall into the illusion of 
`opening first. .' 
 
"It is evident that in the wake of China's enactment of 
the `Anti-Secession Law,' trade activities across the 
Taiwan Strait have become a point of emphasis for 
Beijing to sow discord within Taiwan. . This newspaper 
believes that in addition to `effective management,' 
the government must also thoroughly review and slow 
down certain exchange activities across the Taiwan 
Strait.  The government should encourage local 
industries to invest in other countries whose 
investment risks are much lower that those of China's. 
At least, those countries will not dare to employ 
depraved tactics, as China does, to coerce Taiwan 
businessmen to turn against their own country and 
people." 
 
C) "KMT's Flip-flop Endangers the Nation" 
 
The pro-independence, English-language "Taipei Times" 
[circulation: 30,000] noted in an editorial (7/28): 
 
"China's continued military expansion has not only 
increased tension across the Taiwan Strait, but has 
also made Japan, the US and other nations nervous.  The 
US, as the world's policeman, is especially troubled, 
for it is responsible for maintaining security in the 
Asia-Pacific region.  If Taiwan's position became 
endangered, the US could not easily ignore the 
situation. . 
 
". The arms procurement bill, so long delayed by the 
legislature, is really a test of the Taiwanese people's 
will to defend themselves.  If the bill is passed, it 
will substantially improve the nation's ability to 
defend itself.  And it will also tell the international 
community that the Taiwanese people are determined to 
continue moving toward greater autonomy. 
 
"At the same time, the pan-blue camp's obstructionism 
highlights the lack of a central guiding idea in 
Chinese Nationalist Party (KMT) and People First Party 
(PFP) positions. . The KMT's fickle ways only prove 
that the party lacks a clear and constructive political 
plan.  How could such a party gain the public's trust?" 
 
PAAL