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102257Z Aug 05

UNCLAS SECTION 01 OF 03 TAIPEI 003325 
 
SIPDIS 
 
SENSITIVE BUT UNCLASSIFIED 
 
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:  TAIWAN'S REVIEW OF CABLE TV STATION SPARKS 
CONTROVERSY 
 
 
¶1. SUMMARY:  Taiwan's Government Information Office (GIO) 
announced July 13 that the operating licenses of 21 of 70 
cable TV channels whose broadcasting licenses were up for 
renewal had failed to pass the initial review process. On 
July 31, the GIO announced that it would not renew the 
licenses - and thus was effectively shutting down as of 
August 1 -- one TV news channel and six movie/variety 
channels.  The GIO's move has generated much controversy. 
Many question whether the GIO has the authority to close 
down media, with some going so far as to question whether 
any democratic government should have any role in regulating 
the media.  Others find fodder for a new "government 
conspiracy" theory in the matter.  END SUMMARY. 
 
¶2.  According to Taiwan's Satellite Broadcasting Law (1999), 
each television channel must renew its broadcasting license 
every six years; this July marked the first time 3channels 
had to renew their licenses since the law went into effect. 
Taiwan's Government Information Office (GIO) announced July 
13 that the operating licenses of 21 of the 70 cable TV 
channels whose licenses were up for renewal had failed to 
pass the initial review process administered by a committee 
of 12 members set up by the Department of Broadcasting 
Affairs under the GIO. On July 31, the GIO made a follow-up 
announcement that it would not renew the licenses - and thus 
was effectively shutting down as of August 1 -- ETTV-S News 
Channel, Long Shong Movie Channel, Rainbow "Adult" TV 
Channel, CASA Financial Information Channel, Wall Street 
Finance Channel, Peng Lai Hsian Shan Variety Channel (a 
mixture of religious programming during the day and "adult" 
programming at night), and Ou Peng Satellite TV Variety 
Channel (with a similarly anomalous mix).  In a press 
release the committee said the channels had violated the 
Child and Juvenile Welfare Law, Sexual Assault Prevention 
Law, Food Sanitation and Management Law, and Satellite 
Broadcasting Law.  Reportedly 1,000 people could lose their 
jobs due to the abrupt shutdown of their companies. 
 
¶3.  In the days immediately following the GIO decision, the 
pan-Blue-inclined newspapers roundly condemned the move on 
their editorial pages.  The "China Evening Post" ran an 
editorial that urged readers to "remember this day" when 
"news freedom was taken prisoner" in Taiwan, thus marking 
"the beginning of fascism and dictatorship." Since the GIO 
is the spokesman of the government, it should not have the 
authority to close any station, the editorial maintained; 
the future media regulatory agency - the National 
Communications Commission (NCC) -- should be responsible for 
deciding upon such closures.  The similarly Blue "United 
Evening News" also ran an editorial that stated that 
"everyone agrees Taiwan's media is intolerably chaotic," but 
"the question is, who should reform it?"  In a democratic 
society, the media should supervise the government, the 
editorial continued, and suggested it would be a topsy-turvy 
world, would it not, "if the government can turn around and 
determine the fate of the media?" 
 
¶4.  Pan-Green-aligned newspapers applauded the GIO in 
editorials for attempting to rein in Taiwan's chaotic media. 
"The Liberty Times" ran an editorial stating that the Taiwan 
public is "pleased by the GIO's actions."  The "Taipei 
Times" published an editorial stating that media outlets 
have failed to practice self-discipline, and existing laws 
give the GIO the authority to revoke licenses.  Therefore, 
the GIO move justifiably "signaled a warning from the 
government to Taiwan's media circles." The "Taiwan Daily" 
noted that when the media continues to be in chaos, why 
shouldn't the GIO exercise its legal powers? 
 
¶5.  The "Taiwan Daily" editorial hit upon the crux of the 
matter -- did the GIO have the right to do what it did?  Or, 
in fact, did the democratic government of Taiwan in general 
have such a right?  A TV reporter at ERA TV, who spoke on 
the condition of anonymity, told AIT/PAS:  "[O]riginally the 
media is supposed to monitor the government, but how come 
now it is the government monitoring the media? The roles 
have been switched and this is not normal." A light-green 
reporter for "The Liberty Times," Lee Ming-hsien, said his 
first reaction to the news was: "The government's 
maneuvering (of media) is too crude." May Chen, a senior 
manager at TVBS, like many media executives, questioned the 
way the GIO handled the licensing review:  "It was too 
shoddy and too hasty." 
 
¶6.  The question of timing of the decision and its immediate 
application does stand out, especially with the prospect of 
1,000 people losing their jobs overnight. If the GIO's 
intention was to send a message to rein in Taiwan's wilder 
media outlets -- as "The United Daily News" said, "killing 
one (station) to warn a hundred" - why did the process have 
to move so quickly?  Although not reflected clearly on local 
op-ed pages, many media people have found in this unusual 
speed the makings of a conspiracy theory, at least as 
regards the closing of the one TV news station, ETTV-S. 
 
¶7.  GTV political-beat reporter (KMT/light-Blue supporter) 
Tsai Meng-yu told AIT/PAS his first reaction upon hearing 
 
SIPDIS 
about the non-renewal of ETTV-S broadcast license was: 
"It's all about Fubon."  Rumors abound in local media 
circles about the government's intention to replace one Blue- 
friendly station with a new news channel owned by the pro- 
Green Fubon Group.  In fact, some have claimed that the 
Fubon Group sent in an application for a news channel July 
29, right before the GIO-convened review committee made its 
final decision on the channel licenses.  "Liberty Times" 
political-beat reporter Lee Ming-hsien told AIT/PAS that he 
was also inclined to reckon that Fubon's application might 
have played a role in the license revocation. 
 
¶8.  Besides the allegedly close timing between Fubon's 
application for a broadcast license and the denial of the 
ETTV-S license, one of the reasons the "Fubon conspiracy 
theory" has some traction is that one of the 12 license 
review committee members, Kuan Chung-hsiang, has been 
connected with with Fubon.  Kuan is an assistant professor 
at Shih Hsin University Graduate Institute for Radio, 
Television and Film.  Kuan is also, however, the chairman of 
the Media Watch Foundation.  Fubon has long provided 
financial sponsorship to the Media Watch Foundation, whose 
office is actually inside the Fubon Financial building in 
Taipei.  AIT/PAS could not determine whether Fubon is 
currently subsidizing the foundation's rent for this office 
to any extent. 
 
¶9.  Another "Liberty Times" reporter, Chen Yu-ting - who 
considers herself non-partisan, and covers the social-issues 
beat -- told AIT/PAS that several reporters were concerned 
enough about the possible conflict of interest facing Kuan 
that they spoke to him about his role on the GIO review 
committee.  According to Chen, Kuan responded by saying that 
Fubon did, indeed, sponsor the foundation a few years ago, 
but no longer does so.  In addition, Kuan said he had only 
took over the Foundation's chairmanship this year, implying 
that he was not influenced by Fubon's past generosity. 
 
¶10.  May Chen from TVBS did not have any direct opinion for 
AIT/PAS about the "Fubon conspiracy."  She did, however, 
dismiss speculation that the GIO deliberately chose to close 
down ETTV-S because the cable TV station was regarded as a 
pan-Blue media outlet.  She said Gary Wang, chairman of 
Eastern Multimedia Group and a former KMT-legislator, has 
expanded his business empire partly by maintaining good 
relationships with the DPP government and pro-Green 
politicians.  For instance, ETTV-S has broadcast several DPP 
campaign rallies, and aired talk shows led by pro-Green 
hosts.  If the GIO had wanted to close down a Blue news 
channel, there are many other, "Bluer" choices. 
 
¶11.  "We knew beforehand that at least one of us would be 
punished," said Chen, whose TVBS was one of the seven cable 
news channels that failed the preliminary GIO review.  ETTV- 
S became an obvious "target," she said, because it carried 
the controversial crime show hosted by Taipei City Councilor 
Wang Yu-cheng that specialized in passing off 
"dramatizations" as real news footage.  The fact that EMG 
has become a "super player" in Taiwan's cable TV industry, 
running 12 cable channels (including ETTV-S) and doubling as 
a cable system operator, Chen said, also made it more 
vulnerable to scrutiny by the review committee. 
 
¶12.  (SBU) Comment:  Opinions in Taiwan about the GIO's 
motivations cover the spectrum from conspiratorial to 
clumsy.  Regardless, everyone inclined to criticize the 
government has take one clear message:  Criticize at your 
peril.  Whether warranted or not, that risks reducing the 
willingness of media outlets to speak their mind.