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

UNCLAS TAIPEI 004930 
 
SIPDIS 
 
DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - ERIC 
BARBORIAK 
DEPARTMENT PASS AIT/WASHINGTON 
 
E.O. 12958: N/A 
TAGS: OPRC KMDR KPAO TW
SUBJECT: MEDIA REACTION: U.S. ARMS PROCUREMENT BILL 
 
¶1.  Summary: Major Chinese-language Taiwan dailies (12/21) 
focused on the unexpected passage of the U.S. arms 
procurement bill in the Legislative Yuan's Procedure 
Committee and former Chunghua County Magistrate Wong Chin- 
chu's decision to run for DPP Chairperson.  The pro- 
independence "Liberty Times" ran a banner headline on its 
front page that read: "The U.S. Arms Procurement Bill Came 
Out of the Control of the Legislative Yuan's Procedure 
Committee after 41 Attempts." 
 
In terms of commentaries, National Taiwan University's 
Professor Huang Kwan-kuo said President Chen Shui-bian's 
plan to increase Taiwan's national defense budget to 3 
percent of GDP means Taiwan wants "guns" but not "butter," 
adding that Chen thinks he can get the upper hand on the KMT 
on this issue.  Taiwan Think Tank analyst Lai I-chung urged 
the pan-Blue alliance not to be afraid of discussing the 
U.S. arms procurement bill in the Legislative Yuan, adding 
that such discussions would allow the Taiwan people to 
better understand Taiwan's national defense situation.  End 
summary. 
 
¶2.  "The [DPP-led] Arms Race [Across the Taiwan Strait] Gets 
the Upper Hand on the Weak KMT" 
 
Huang Kwan-kuo, Professor of the Department of Psychology, 
National Taiwan University, wrote in the pro-unification 
"United Daily News" [circulation: 400,000] that (12/21): 
 
". Among the neighboring countries in Asia, the budget for 
national defense in South Korea is 2.1 percent of GDP, the 
percentage for Japan is 1.2, the percentage for China is 
only 0.43.  The current percentage for Taiwan is 2.4, which 
is higher than South Korea and Japan.  If the government 
wants to raise the percentage [of the budget for national 
defense] to 3 percent [of GDP,] this means that [Taiwan 
wants] `Guns, Not Butter.'  This also means Taiwan wants to 
carry out an arms race with China regardless of the fact 
that an arms race will negatively impact the budget for 
social welfare, education, science, and culture. 
 
". The opposition party [the KMT] does not have a fixed 
cross-Strait policy, and it could not make up its mind 
regarding the issue of the U.S. arms deal.  No wonder Chen 
Shui-bian, who `knows how to run elections, but not the 
country,' can still beat the KMT after suffering a fiasco in 
the `3-in-1' elections. ." 
 
¶3.  "Don't be Afraid of Letting the Legislative Yuan Discuss 
the U.S. Arms Procurement Bill" 
 
Lai I-chung, Director for International Affairs at the 
Taiwan Think Tank wrote in the centrist, pro-status quo 
"China Times" [circulation: 400,000] that [12/21]: 
 
". The passage of the U.S. arms procurement bill in the 
Legislative Yuan's Procedure Committee does not mean that 
the bill has been passed by the legislature; it means, 
however, that the bill will enter the legislature's agenda 
for discussion.  The Taiwan people need a chance to 
understand the content of the bill and what it might 
involve.  If the legislators cannot reach a consensus [on 
the bill] through discussion and negotiation, the bill can 
still be rejected by the Legislative Yuan. . 
 
". The arguments over the U.S. arms procurement bill focus 
almost entirely on the budget issue, i.e. the form of the 
budget and whether the procurement price is reasonable. 
Arms procurement, however, is tightly connected with [the 
larger] issues of Taiwan's national defense policy and 
national security strategy. . 
 
"In fact, the United States has already said that it will 
accept any outcome on the U.S. arms procurement issue 
through Taiwan's democratic decision-making [mechanism]. 
However, as former U.S. Deputy Assistant Secretary of State 
Randy Schriver pointed out in an open speech in Taiwan, the 
U.S. cannot understand why there has been no opportunity to 
discuss the bill in the Legislative Yuan.  If we take a 
closer look at the current bill, several changes have been 
made to the content and items.  Some items have been moved 
to Taiwan's annual regular budget, and the scale of the 
budget has also been greatly reduced.  Is this not quite a 
different bill worthy of discussion? ." 
 
PAAL