VZCZCXYZ0008
RR RUEHWEB

DE RUEHIN #1929 1570856
ZNR UUUUU ZZH
R 060856Z JUN 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 0537
INFO RUEHBJ/AMEMBASSY BEIJING 5272
RUEHHK/AMCONSUL HONG KONG 6491

UNCLAS AIT TAIPEI 001929 
 
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:  Taiwan's major Chinese-language dailies focused their 
coverage June 6 on the pan-Blue and pan-Green camps' moves in the 
wake of President Chen Shui-bian's announcement last Wednesday to 
relinquish some of his powers; the plunge of Taiwan's stock market 
Monday; and the investigations into Chen's son-in-law's insider 
trading scandal.  The pro-status quo "China Times" ran a front-page 
banner headline that read "KMT Finally Picks Its Tune; Ma Decides to 
Recall Chen Shui-bian."  The same newspaper also carried the results 
of its latest survey, which showed that those who hope that 
President Chen would step down rose to 47 percent, an increase of 
four percent since the last poll on June 1.  The same poll also 
showed that KMT Chairman Ma Ying-jeou's approval rating dropped from 
63 percent in late April, when he met with Chen following his U.S. 
trip, to 58 percent.  The pro-independence "Liberty Times," Taiwan's 
biggest daily, however, reported on page two that "Cabinet, DPP, and 
DPP Legislative Caucus Form Iron Triangle;' and on page three, the 
paper said "If Pan-Blue Camp Casts No-Confidence Vote, DPP Will Urge 
Bian to Dissolve Legislature." 
 
Both the "Liberty Times" and the pro-unification "United Daily News" 
front-paged the plunge of Taiwan's stock market by 244 points 
Monday.  The "Liberty Times" attributed the loss to the current 
chaotic political situation, while the "United Daily News" said it 
was due to rumors that the DPP government wanted to "torture" the 
stock market. 
 
¶2. In terms of editorials and commentaries, a "Liberty Times" 
editorial said that not only the DPP but also the whole of Taiwan 
will lose if the pan-Blue camp succeeds in paralyzing the 
government.  A "United Daily News" analysis said in the wake of 
Chen's relinquishing some powers, a new chess game has been formed 
for the Green leaders - namely, Su Tseng-chang and Yu Shyi-kun, Chen 
and Annette Lu will each form an alliance, while Frank Hsieh will 
work alone.  End summary. 
 
A) "Taiwan's National Sovereignty and Democratic Order Are Facing 
Challenges" 
 
The pro-independence "Liberty Times" [circulation: 600,000] 
editorialized (6/6): 
 
"... The pan-Blue camp's wishful thinking is obviously that they 
will win as long as they can form a new Cabinet, cast a 
no-confidence vote on the incumbent Cabinet, or recall President 
Chen; [if not] they can still win if they totally paralyze the 
government.  But should that be the case, the loser will not just be 
the DPP; instead, all of Taiwan will lose, too.  As a result, the 
DPP government should demonstrate its concentrated strength in the 
face of great danger or emergency, calmly and steadily implementing 
policies that benefit the national economy and people's livelihoods. 
 In fact, only by doing so can the DPP administration break the 
siege of the pan-Blue camp and fight its way out.  ... 
 
"Democracy is the best tool for Taiwan to resist totalitarian China. 
 Taiwan's current situation is not just about whether a certain 
person should leave or stay, but about the challenge of whether the 
island's democratic order can be maintained.  If the democratic 
order is shaky and the minority of a 'party's will' overrides the 
majority of 'public view,' the democratic fruit that Taiwan has won 
over the past two decades will fall apart overnight, and China will 
expand its United Front attacks.  Those who are concerned about 
Taiwan's future must not assume that this is just a fight between 
the ruling and opposition parties and feel indifferent about it!" 
 
B) "A New Chess Game for Green Leaders - Su and Yu, Bian and Lu, 
While Hsieh Will Work Alone" 
 
Journalist Lo Hsiao-ho commented in a news analysis in the 
pro-unification "United Daily News" [circulation: 400,000] (6/6): 
 
"... The political situation in the post-Bian era is still full of 
changes.  Su Tseng-chang and Yu Shyi-kun have obviously formed an 
alliance, while former Premier Frank Hsieh, who currently has no 
position or resources, is trying to plow a new path.  Annette Lu, to 
everyone's surprise, has become a feasible chessman for Bian in this 
changing game of chess.  Lu has shown full support for Chen [when 
they] faced the crises of being recalled or a no-confidence vote 
over the past few years, creating a good impression among the DPP 
supporters.  She also demonstrated wisdom about how to cope with 
predicaments by inviting leaders of various parties to talks and 
making a goodwill gesture to Wang Jin-pyng.  She has shown that she 
strived to demonstrate the demeanor of a multi-partisan leader. ..." 
 
 
KEEGAN