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 003597 
 
SIPDIS 
 
STATE PLEASE PASS TO AIT/W AND EAP/RSP/TC 
 
STATE PLEASE ALSO PASS TO USEPA/OIA 
 
E.O. 12958: N/A 
TAGS: AMGT SENV ECON TW ESTH
SUBJECT:  TAIWAN:  REPEAT WATER PROBLEMS LEAD TO PERSONNEL 
SHAKE-UP 
 
¶1.  Summary. Water supply problems two years running in 
northern Taiwan's Taoyuan County led to three officials 
losing their posts. Minister of Economic Affairs (MOEA) Ho 
Mei-yueh saved her job by delivering running water within 
her deadline.  Pump failures at a second pumping station 
built after last year's problems have led to investigations 
into possible corrupt activities.  Additional water supply 
improvements are under consideration.  End Summary. 
 
Poor Water Quality Precipitates Water Shortage 
--------------------------------------------- - 
 
¶2. Two years in a row, typhoons caused major water shortages 
in northern Taiwan's Taoyuan City and County.  Most 
recently, the August 5 Typhoon Matsa cut off water to 
600,000 households in Taoyuan County for five days.  This 
situation followed water management measures put in place in 
the aftermath of the August 24-25, 2004 Typhoon Aere, which 
left a total of 320,000 homes and businesses (over 2 million 
people) in Taoyuan without water for up to 19 days. 
 
¶3. Ironically, the reason for the significant water 
shortages in Taoyuan was not due to the quantity of water in 
the region, but rather the quality.  Following significant 
rainfall during the two typhoons, Shihmen reservoir, which 
provides water for the area, rose to record high levels. 
While major rainfall typically causes higher turbidity 
levels at all the reservoirs in the north, the turbidity 
levels at Shihmen have been by far the most severe.  Due to 
mudslides around Shihmen, most of the stored water becomes 
unsuitable for processing into drinking water. 
 
¶4. Following the August 2004 typhoon Aere, state-owned 
Taiwan Water Supply Corporation (TWSC) built a second 
pumping station in an effort to prevent future turbidity- 
induced water shortages following typhoons.  Unfortunately, 
in the aftermath of the August 5, 2005 Typhoon Matsa (the 
second typhoon in as many weeks), half of the 10 pumps did 
not work. 
 
Political Fallout 
----------------- 
 
¶5. Public outcry over successive water shortages has led to 
political finger pointing.  On August 9, President Chen Shui- 
bian publicly apologized for the government's inadequate 
handling of water resources, saying that it is not the first 
time residents have suffered water shortages and that it was 
time that someone take responsibility for the problem. 
Prosecutors are now looking into whether corruption may have 
played a part in the failure of the second pumping station. 
 
¶6.  In response, Minister of Economic Affairs Ho Mei-yueh, 
who directly supervises the operations of the Water 
Resources Agency (WRA), promised to step down from her 
position if full water supplies to southern Taoyuan County 
were not restored within a week of Typhoon Matsa. 
Furthermore, WRA Director-General Chen Shen-hsien and state- 
owned Taiwan Water Supply Corporation (TWSC) Chairman Lee 
Wen-liang also offered to resign over the water controversy. 
As water supplies were restored within Ho's deadline, she 
retained her job.  However, Premier Hsieh accepted Chairman 
Lee's resignation and appointed Hsu Hsiang-kun (a former WRA 
Director) as the Chairman of the TWSC in his place. 
Furthermore, WRA Director-General Chen was given a warning. 
Finally, MOEA Administrative Vice Minister Yiin Chii-ming 
took responsibility at the senior level and stepped down to 
be replaced by Hou He-hsiung, the former Deputy Mayor of 
Kaohsiung.  Hou is both a water resources expert and an 
engineer. 
 
Economic Impact 
--------------- 
 
¶7. According to the Industrial Development Bureau (IDB), 
industrial losses arising from the water shortages have been 
minimal.  Although water rationing measures for industry 
were the same as for households, based on the water 
shortages experienced last year, most companies had 
installed reserve water tanks, drilled water wells or set up 
water-purchasing plans to ensure manufacturing continuity in 
times of drought.  Nonetheless, IDB has acknowledged that if 
the ongoing turbidity problems are not resolved, industrial 
production could also be impacted. 
 
Planned Prevention Measures 
--------------------------- 
 
¶8. To prevent future shortage, WRA plans in the short-run to 
increase the number of pumping stations at Shihmen 
Reservoir.  For the long-term, the EY plans to earmark 
US$18.8 million in next year's budget for water projects 
including the building of a water purification plant capable 
of storing 800,000 tones of water.  In addition, WRA hopes 
to spend US$47 million on maintaining and extending Shihmen 
and on raising water containment levels in order to take 
water from three different levels of the reservoir so that 
less turbid areas can be accessed following storms.  Premier 
Hsieh has also promised to plant more vegetation in upstream 
areas and to strictly enforce laws prohibiting tree felling 
and over development on hilly terrain. 
 
Special LY Session 
------------------- 
 
¶9. The Democratic Progressive Party (DPP) is continuing to 
try to use water-related problems as an excuse to hold a 
special legislative session to approve an NT$80 billion 
eight-year budget for water resources and flood-control 
management.  Opposition parties remain unconvinced of the 
necessity to hold a special session for programs that they 
believe should be included in the regular budget. 
 
Paal