VZCZCXYZ0015
RR RUEHWEB

DE RUEHIN #1898/01 1530858
ZNR UUUUU ZZH
R 020858Z JUN 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 0489
INFO RUEHBJ/AMEMBASSY BEIJING 5252
RUEHHK/AMCONSUL HONG KONG 6469

UNCLAS AIT TAIPEI 001898 
 
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: PRESIDENT CHEN CEDING POWERS 
 
 
¶1. Summary:  All Taiwan dailies June 2 front-paged President Chen 
Shui-bian's approval of the resignation of two close aides Thursday, 
following Chen's relinquishing some of his responsibilities.  News 
coverage also focused on Premier Su Tseng-chang's becoming the 
virtual chief of the administration; the pan-Blue and pan-Green 
camps' reactions to this development; alleged involvement by Chen's 
son-in-law in the insider trading scandal; and other corruption 
scandals.  The mass-circulation "Apple Daily" ran a banner headline 
on page four that read "Premier Su Obtains Substantive Powers, Good 
News for Cross-Strait [Relations]."  The pro-status quo "China 
Times," in the meantime, carried the results of its latest survey, 
which showed that 43 percent of respondents said they believe Chen 
should resign, a rise of 9 percent when compared with the 
newspaper's last poll on May 27. 
 
¶2. Most papers editorialized on Chen's political predicament and 
Taiwan's controversial constitutional systems, namely, whether it is 
a presidential system or a cabinet system.  An editorial in the 
pro-independence "Liberty Times," Taiwan's biggest daily, said the 
top priority for Taiwan's democracy to endure and prosper is for the 
island to write a new constitution.  An editorial in the 
limited-circulation, pro-independence, English-language "Taipei 
Times" said Chen's decision poses dangers for Su as the move is 
unlikely to defuse any of the scandals plaguing the administration. 
An editorial in the limited-circulation, pro-independence, 
English-language "Taiwan News," however, said Chen's move will give 
the DPP room for revival and effectively force the DPP to take 
responsibility for solving its own problems.  A "China Times" 
opinion piece said even though Chen's move can stabilize the 
political situation for the time being, it will just be balancing on 
a needle's tip.  An editorial in the limited-circulation, 
conservative, pro-unification, English-language "China Post" said 
Chen's delegation of powers will not help him ride out the crisis. 
End summary. 
 
A) "To Thoroughly Review Constitutional System and Role of Media to 
Lead Democracy Back onto Normal Track" 
 
The pro-independence "Liberty Times" [circulation: 600,000] 
editorialized (6/2): 
 
"... In a nutshell, even though the insider-trading scandal has 
triggered a series of upheavals, which seem to have created the 
biggest crisis ever for Taiwan's democracy, this crisis is in 
reality related to the ruler's governance of the country, which has 
nothing to do with Taiwan's democracy.  But this event has taught us 
that to ensure that Taiwan's democracy will endure and prosper, the 
top priority is to write a new constitution.  The new constitution, 
the ultimate code that will ensure Taiwan's lengthy peaceful reign, 
must clearly stipulate the operational style of [Taiwan's] governing 
system and distinguish all power relationships.  Also, the media 
must adhere to their professional ethics, make a clear distinction 
between right and wrong, abandon their biased partisan stands, and 
play an objective role to supervise [the government].  Only by doing 
so can Taiwan ride out the scandal storms and face its bright 
future." 
 
B) "The Grunt Versus the Spider" 
 
The pro-independence, English-language  "Taipei Times" [circulation: 
30,000] editorialized (6/2): 
 
"So President Chen Shui-bian has bowed to snowballing scandals and 
declared himself a lame duck.  There are those within the pan-green 
camp who might be happy at the prospect of Premier Su Tseng-chang 
being able to distance himself from the Chen administration, which 
has wandered from disaster to disaster during the president's second 
term.  Many are already counting on Su to bear their standard in the 
2008 presidential election, viewing his charisma and plain-talking 
pragmatism as their only hope against the golden boy from Hong Kong, 
Chinese Nationalist Party (KMT) Chairman Ma Ying-jeou.  But the 
president's decision poses dangers for Su.  After all, it is 
unlikely the move will defuse any of the scandals plaguing the 
administration. ... 
 
"The basic problem is that, regardless of what happens to Chen, Su 
is going to be left with the unenviable task of cleaning up the 
mess.  It is Su that must deal with the aftermath of the various 
scandals that have erupted.  It is Su who will have to take the flak 
for the landslides, floods, typhoons, crop damage, financial 
problems and myriad other issues that a premier has to deal with 
each year. ...  Of course, what is best for Ma is not necessarily 
best for the country.  The people should ask themselves why it is 
that Su is where he is now.  They should ask themselves if they 
would prefer a leader who is unafraid of risk his political capital 
simply to get things done, as is Su, or one who calculates from the 
shadows and takes advantage of others' mistakes, as does Ma.  If 
Taiwan chooses the spider, it shouldn't cry when it gets bitten." 
C) "Chen Gives DPP Room for Revival" 
 
The pro-independence, English-language "Taiwan News" [circulation: 
20,000] editorialized (6/2): 
 
"... Chen's move will effectively force the DPP and its senior 
leadership to take responsibility for solving their own problems. 
In our view, such a move was long overdue, especially since Chen 
will not be able to be a candidate for president in March 2008, 
having already been elected to two four-year terms.  Whomever the 
DPP's presidential standard-bearer will be, he will she will have to 
reinvent a new DPP image distinct from the once fresh but now 
time-worn 'Chen Shui-bian phenomenon.' 
 
"It should be noted that the president is not devolving all of his 
power.  After all, the narrowly defined constitutional powers 
enjoyed by the president still include policy making responsibility 
for national security and defense and foreign affairs (including 
cross-strait relations with the People's Republic of China), 
emergency powers in the case of national crisis or disasters, 
personnel appointments for the Control, Judicial and Examination 
Yuan and other fields.  Nevertheless, the president's declaration 
that he will no longer directly get involved in domestic affairs 
serves as a belated signal to potential influence peddlers that 
waving the presidential signboard will be of no help in getting 
benefits from the DPP government. ..." 
 
D) "A-Bian Ceding Powers, Stability on a Needle's Tip" 
 
Professor Emile Sheng at Soochow University's Department of 
Political Science opined in the pro-unification "United Daily News" 
[circulation: 400,000] (6/2): 
 
"... When it comes to political impact, President Chen's 
announcement Wednesday was akin to using his relinquishing powers in 
exchange for Premier Su and the New Tide Faction's agreement not to 
jump on the bandwagon to oppose him, so that he could finish his 
remaining term with stability.  The success of Chen's plan will 
depend on how strong Vice President Annette Lu and former Premier 
Frank Hsieh's counterattacks will be, and whether follow-up 
investigations prove Chen and his wife were also involved in the 
corruption scandals.  In addition, whether Su's future 
administrative direction will conflict with Chen is another point 
worthy of observation.  In other words, even though Chen's move to 
cede some powers can stabilize the political upheaval for the time 
being, it will just be balancing on a needle's tip.  It does not 
indicate that the fuse leading to Chen's crisis of an early 
step-down is already removed. ..." 
 
E) "Delegating Power Won't Help Chen Ride out Crisis" 
 
The conservative, pro-unification, English-language "China Post" 
[circulation: 30,000] commented in an editorial (6/2): 
 
"When President Chen Shui-bian announced his decision on Wednesday 
to allow Premier Su Tseng-chang to exercise more government powers, 
instated of continuing to concentrate them in his own hands, as has 
been the case in the last six years of his administration, he 
apparently hoped to use a change of his past authoritarian 
leadership style to help him weather the political crisis he is 
facing.  But it is highly doubtful that this strategy will work. ... 
 The problem now plaguing President Chen is not just a 
scandals-triggered political crisis.  He is also confronting a 
crisis of confidence.  It's no news that more than 70 percent of the 
people now don't have confidence in him, as shown in the latest 
opinion polls by major newspapers and TV networks.  What is 
surprising is that dozens of young DPP cadres and other ruling party 
members came out on Wednesday to openly vent their anger over Chen, 
saying that they have lost faith in him and don't believe that he 
can continue to perform his role as the leader of the country. ..." 
 
YOUNG