VZCZCXYZ0009
RR RUEHWEB

DE RUEHIN #1333/01 1070826
ZNR UUUUU ZZH
R 170826Z APR 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 9737
INFO RUEHBJ/AMEMBASSY BEIJING 5073
RUEHHK/AMCONSUL HONG KONG 6270

UNCLAS AIT TAIPEI 001333 
 
SIPDIS 
 
DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - ERIC BARBORIAK 
DEPARTMENT PASS AIT/WASHINGTON 
 
SIPDIS 
 
E.O. 12958: N/A 
 
 
TAGS: OPRC KMDR KPAO TW
SUBJECT: MEDIA REACTION: KMT-CCP ECONOMIC FORUM 
 
 
¶1. Summary: Taiwan's major Chinese-language dailies gave significant 
coverage April 15-17 to the KMT-Chinese Communist Party (CCP) 
Economic Forum held in Beijing over the weekend, and the meeting 
between KMT Honorary Chairman Lien Chan and Chinese President Hu 
Jintao Sunday.  Coverage also focused on the controversial gift 
vouchers to the SOGO Department Store, which President Chen 
Shui-bian and his family were allegedly related to; and the year-end 
Taipei and Kaohsiung mayoral race.  The pro-independence "Liberty 
Times," Taiwan's biggest daily, ran a banner headline on its page 
two April 17 that said: "Lien, Hu Meet for the Second Time; [Both] 
Talk about One China But Not 'Different Interpretations [of the One 
China Principle]."  The pro-independence "Taiwan Daily" also ran a 
banner headline on its page three April 17 that read: "Undaunted by 
China's Approaching Threats, the Pro-Independence Activists Urge 
[Taiwan] to Move Forward."  The pro-unification "United Daily News," 
however, ran a banner headline on its page three April 16 that said: 
"Layer by Layer and With Means Both Heavy and Light, Beijing Is 
Knocking down the Taiwan Independence Barriers."  The pro-status quo 
"China Times" ran an exclusive front-page news story April 17 that 
quoted former Mainland Affairs Council Chairman Chen Ming-tong as 
saying that a delegation authorized by the Taiwan government went to 
Beijing for secret negotiations on direct charter flights between 
April 8 and April 10 before the Lien-Hu meeting Sunday. 
 
¶2. In terms of editorials and commentaries, editorials of the 
pro-independence "Liberty Times," "Taiwan Daily," the 
limited-circulation, English-language "Taipei Times" and "Taiwan 
News" all called the incentives proposed by Beijing during the 
KMT-CCP economic forum united-front measures aimed at belittling 
Taiwan's sovereignty.  A "China Times" editorial urged the ruling 
DPP to pragmatically cope with the new changes with regard to 
cross-Strait relations.  A "United Daily News" news analysis said 
Beijing has released comprehensive and consistent messages with 
regard to cross-Strait relations and is waiting for Washington's 
final endorsement - namely, the U.S.-China summit slated for April 
¶20.  End summary. 
 
A) "Lien Chan Will Become the One Who Has Rendered Outstanding 
Service for 'Pushing for [Cross-Strait] Unification and Jeopardizing 
Taiwan'" 
 
The pro-unification "Liberty Times" [circulation: 600,000] 
editorialized (4/17): 
 
"... The united-front measures proposed by China [during the KMT-CCP 
economic forum] this time were basically of the same type as those 
proposed at the Lien-Hu meeting last year.  That is, they were made 
in an attempt to cause Taiwan people's national identity to waver 
and create the illusion that Taiwan's economic prosperity must 
depend on China. ...  [The fruit of] Taiwan's economic developments 
must be shared by all the Taiwan people.  The so-called investments 
in China only help to push for China's economic growth and create 
job opportunities in China; they may have contributed to the 
interests of those who cling on to China, but surely such moves will 
hollow Taiwan's industries and thus generate many social problems 
derived from high unemployment rates. ..." 
 
B) "The KMT-CCP Economic Forum, Which Joins Internal and External 
Forces in an Attempt to Befriend the [Taiwan] Public, Is a 
Sugarcoated Trap to Belittle Taiwan's Sovereignty and Bypass the 
Taiwan Government" 
 
The pro-independence "Taiwan Daily" [circulation: 100,000] 
editorialized (4/17): 
 
"The series of measures announced by Beijing [during the KMT-CCP 
economic forum] were united-front tactics in order to befriend and 
attract the Taiwan public.  The Taiwan government must first do a 
thorough assessment of these measures, and then it should announce 
implementation of those measures that are good for Taiwan's public 
welfare and harmless for Taiwan's sovereignty.  As for those 
ill-intentioned measures that are secretly aimed at sabotaging 
Taiwan's sovereignty or Taiwan-centered values, the government 
should also explain to its people why it cannot accept them. ..." 
 
C) "Lien Visit Hype Unwarranted" 
 
The pro-independence, English-language "Taipei Times" [circulation: 
30,000] commented in an editorial (4/16): 
 
"The media coverage and public attention regarding the meeting 
between Chinese President Hu Jintao and former Chinese Nationalist 
Party (KMT) chairman Lien Chan and the economic and trade forum 
between their parties is unwarranted.  It is unlikely these events 
will produce any significant breakthrough in cross-strait relations. 
 They should be considered primarily as a photo opportunity for the 
retired Lien. ... 
 
"As for the CCP-KMT forum, it is also not likely to lead to 
anything. ... If none of these events managed to come up with any 
innovative ideas to break the current impasse, it is unrealistic to 
expect the CCP-KMT forum to be any different.  Moreover, the 
government here has already issued reminders that it will have to 
approve any conclusions reached at the forum that touch on its 
authority.  Sure, Lien will be given VIP treatment by Beijing.  But 
that probably has more to do with China's intent to make the 
Democratic Progressive Party government look bad." 
 
D) "Hu and Lien Offer Taiwan a Devil's Bargain" 
 
The pro-independence, English-language "Taiwan News" [circulation: 
20,000] wrote in an editorial (4/17): 
 
"... Taiwan's Democratic Progressive Party government does not need 
to reject Beijing's offers out of hand, but, unlike the KMT, has the 
responsibility to ensure that such carrots do not harm the long-term 
national, economic and social interests of our people and do not 
compromise our Taiwan-centric medium-and long-term development 
goals. ...  Last week's KMT-CCP economic forum and yesterday's 
Hu-Lien meeting has thus had some positive significance in 
clarifying for the Taiwan people the nature of the 'devil's bargain' 
offered by Beijing and enthusiastically endorsed by the KMT. 
 
"In exchange for the privilege of limited and fleeting prosperity 
through becoming an economic appendage to the great Chinese market 
and the highly uncertain peace under the domination of the PRC, the 
Taiwan people only need relinquish their hard-won democracy and 
their power to develop and implement our own Taiwan-centered global 
economic strategy. ..." 
 
E) "In Addition to Harsh Criticism, the Ruling Party Might as Well 
Pragmatically Cope with the New Changing Situation" 
 
The pro-status quo "China Times" [circulation: 400,000] 
editorialized (4/17): 
 
"... Without doubt, Beijing has its strategic goals: on the one 
hand, its appeal for peace [across the Taiwan Strait] was meant for 
Washington's eyes, which is getting ready for the upcoming meeting 
between U.S. President George W. Bush and Chinese President Hu 
Jintao.  On the other hand, Beijing is also trying to create an 
atmosphere that is favorable for the KMT to secure a victory in the 
2008 presidential elections and to win the Taiwan people's support, 
in an attempt to isolate the pan-Green camp.  The top priority task 
for the DPP now, as a responsible ruling party, is to proactively 
... make a pragmatic assessment of the many incentives proposed by 
Beijing.  It should accommodate or even further proceed with those 
measures if it finds them really beneficial for the Taiwan people. 
... In addition to condemning [the KMT and CCP], the ruling party 
might as well cope with the new situation with a more mature 
attitude!" 
 
F) "In Terms of Cross-Strait Relations, Beijing Releases Signals and 
Awaits Endorsement from the United States" 
 
Journalist Sun Yang-ming commented in the pro-unification "United 
Daily News" [circulation: 400,000] (4/17): 
 
"The second meeting between KMT Honorary Chairman Lien Chan and 
Chinese President Hu Jintao just concluded.  But what's more 
important was that the Lien-Hu meeting was not simply a meeting but 
a warm-up for the cross-Strait issues that will be discussed in the 
U.S.-China summit in Washington four days from now.  During his 
meeting with Lien, Hu released comprehensive and consistent 
messages, which are only waiting for the final endorsement of 
Washington. ... 
 
"Beijing did not mention at all the concept of 'unification' during 
the Lien-Hu meeting, not even the 'modus vivendi' that [KMT 
Chairman] Ma Ying-jeou proposed [when he visited the United States]. 
 Beijing's purpose was to save unnecessary trouble [for the United 
States] at this stage, not letting Washington be worried about its 
unification request. ... Beijing, on the one hand, tried its best to 
befriend the Taiwan people; on the other hand, it has demonstrated 
for the sake of Hu's summit with U.S. President George W. Bush April 
20, it can behave very rationally and maturely when it comes to 
stabilizing cross-Strait relations. ..." 
 
YOUNG