VZCZCXYZ0000
RR RUEHWEB

DE RUEHIN #1943/01 1582211
ZNR UUUUU ZZH
R 072211Z JUN 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 0556
INFO RUEHBJ/AMEMBASSY BEIJING 5273
RUEHHK/AMCONSUL HONG KONG 6494

UNCLAS AIT TAIPEI 001943 
 
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 7 on the former Financial Supervisory Commission 
Examination Bureau Director, Lee Chin-cheng, who was sentenced 
Tuesday to 10 years in jail for graft and insider trading; the 
indictment of Straits Exchange Foundation Vice Chairman Chang 
Chun-hong for alleged  embezzlement from a corporation of which he 
was a director; the pan-Blue camp's plan to recall President Chen 
Shui-bian; and investigations into President Chen's son-in-law's 
insider trading scandal and questionable gifts received by First 
Lady Wu Shu-chen.  The mass-circulation "Apple Daily" ran a colored 
banner headline on page three that read "First Shot to Bring Bian 
Down, Pan-Blue Camp to Push for Recall."  The sub-headline added "59 
Percent of Those Polled Said [Recall Motion] Is Made to Safeguard 
Justice, While 31 Percent Said Disregards People's Livelihoods." 
The pro-unification "United Daily News" front-paged that the KMT 
will propose a no-confidence vote on Su Tseng-chang's Cabinet in 
September.  The pro-independence "Liberty Times," Taiwan's biggest 
daily, on the other hand, ran a banner headline on page two that 
said "Pan-Blue Camp Joins Together to Push for Recall, Su Blasts It 
as Creating Chaos." 
 
Almost all papers reported on inside pages AIT Chairman Raymond 
Burghardt's upcoming visit to Taiwan later this week.  Several 
papers also carried remarks by an unnamed State Department official 
Tuesday, who refuted a Central News Agency report which claimed that 
"Washington hopes Chen could successfully finish his term of 
office."  These papers also quoted another unnamed U.S. official as 
saying that the United States has no intention of interfering in 
Taiwan's internal affairs. 
 
¶2. In terms of editorials and commentaries, a "Liberty Times" 
editorial urged both the ruling and opposition parties to uphold 
democracy and resolve Taiwan's political chaos rationally. 
Editorials in the limited-circulation, pro-independence, 
English-language "Taipei Times" and "Taiwan News" both urged the 
public to remain cool and not give politicians an opportunity to 
cause further strife.  An "Apple Daily" editorial said the best 
solution is for Chen to step down himself.  A "United Daily News" 
analysis said the recall motion launched by the pan-Blue camp is 
just a means to set the groundwork for bringing Chen down.  An 
editorial in the limited-circulation, conservative, pro-unification, 
English-language "China Post" said ceding power has left Chen a 
weaker lame duck.  End summary. 
 
A) "Public Are Watching Who Is Statesman and Who Is Politician" 
 
The pro-independence "Liberty Times" [circulation: 600,000] 
editorialized (6/7): 
 
"Taiwan's political situation is in chaos; not merely has the local 
stock market encountered extraordinary fluctuation, even the United 
States is deeply concerned about it.  Is Taiwan's democracy able to 
stand the test?  This is a topic that both the ruling and opposition 
parties as well as their leaders must face. ...  It is the 
opposition parties' job to supervise the government, but deviation 
from democracy and rule of law is by no means something the rational 
public can tolerate.  All Taiwan people are looking forward to 
seeing how the ruling DPP, entrusted by the Taiwan public, will 
resolve the political chaos.  The performances of the ruling and 
opposition parties as well as all political figures will be the key 
to tell who is a statesman and who is a politician, and whether they 
can win the people's trust in the future. ..." 
 
B) "Time for Cooler Heads" 
 
The pro-independence, English-language "Taipei Times" [circulation: 
30,000] editorialized (6/7): 
 
"... The scandals surrounding Chen's entourage and his family are 
extremely regrettable.  It is imperative that law enforcement 
officials conduct a thorough investigation into all the allegations 
and find out who is responsible.  The public should remain cool and 
not give politicians an opportunity to engage in further strife. 
While the recall proposal can be discussed at the special 
legislative session, issues involving people's livelihoods should 
top the agenda.  Otherwise, contention over the recall is likely to 
overwhelm all other bills, rendering a special session pointless." 
 
C) "The Best Time to Change is 2008" 
 
The pro-independence, English-language "Taiwan News" [circulation: 
20,000] editorialized (6/7): 
 
"... The launching of a recall movement by the KMT and PFP is 
clearly aimed to create more social chaos and try to pressure the 
president to quit on his own accord and does not seriously aim to 
hold a recall vote, which could, if it failed, actually bolster 
instead of undermining his legitimacy and political position. ... 
The only way to change the fact that the DPP is Taiwan's governing 
party would be for a recall of both Chen and Lu to succeed.  Since 
the chances of passage for a recall against Chen are virtually nil 
and there is no rationale for a recall petition against the vice 
president, the best and most honorable course for the KMT camp to 
take if they are bent on 'winning back' Taiwan will be to cease 
moves aiming to negate the people's verdict in the March 2000 and 
March 2004 presidential elections.  Instead, we urge the KMT and PFP 
to clean their own houses and prepare to compete with the DPP for 
the mandate of the people based on their proposed policies, 
capability and integrity in the next scheduled presidential 
elections in March 2008." 
 
D) "The Best Way is for Bian to Resign" 
 
The mass-circulation "Apple Daily" [circulation: 500,000] commented 
in an editorial (6/7): 
 
"... This newspaper believes that it is in the opposition parties' 
'constitutional' power to recall [the president] and cast a 
no-confidence vote on the Cabinet, and there's nothing wrong about 
that.  If the public despises the Bian administration and there is 
clear evidence proving its corruption and negligence of duties, the 
recall motion can at least truthfully reflect public opinion; the 
opposition parties will have fulfilled their responsibilities even 
if the motion fails to cross its high threshold.  The move to cast a 
no-confidence vote is very complicated, but it is still another way 
to show public outrage.  The third way is simply to take to the 
streets.  With the three approaches applied together, even if they 
cannot make Bian step down, they can ensure that he clearly 
understands the public's ill feelings about him, otherwise Bian will 
play the same old tricks of trying to break off his own tail, shift 
the public's attention, and become himself again after the upheaval 
is over. 
 
"The DPP's move to cite the reasons that Bian himself is not 
involved in any wrongdoing in an attempt to resist the public calls 
for recall and asking him to resign is indeed far-fetched.  The 
essential element for the president to resign is not simply based on 
whether he has violated the law.  Moral flaws, family members 
playing with their prestige and law, bankrupt leadership, and a 
credibility breakdown are reasons for the president to resign as a 
gesture of self-reproach. ..." 
 
E) "Having Seen Through Bian's Avarice and Corruption, Ma Invokes 
Thunderbolt Approaches" 
 
Journalist Fan Ling-chia said in an analysis in the pro-unification 
"United Daily News" [circulation: 400,000] (6/7): 
 
"... Ma Ying-jeou's final view of Bian is the major reason why his 
strategic thinking has turned resolute.  He defined the recall 
motion as a polarized confrontation between 'cleanliness versus 
corruption,' and asked the pan-Green legislators to decide whether 
they want to support corruption or support cleanliness.  When Ma 
said Tuesday that 'the First Lady and President Chen seem allegedly 
involved [in the corruption scandals]' is akin to firing the first 
shot in the follow-up battle. ... 
 
"People in the Blue camp analyzed that the recall motion is just a 
means and not an end; it was meant to 'set the groundwork' for a 
comprehensive plan to bring Bian down.  The Legislative Yuan will 
list the motion to recall Chen as the first priority in its interim 
session in an attempt to entice Green legislators and strengthen the 
alliance between the KMT and the PFP.  Should the scandals continue 
to burn upwards to Bian, the Green legislators who oppose the recall 
motion will be stuck in a dilemma. ..." 
 
F) "Ceding Power Has Left Chen a Weaker Lame Duck" 
 
The conservative, pro-unification, English-language "China Post" 
[circulation: 30,000] editorialized (6/7): 
 
"On the surface, President Chen Shui-bian appears to have defused a 
storm of rebellion within the ruling Democratic Progressive Party 
and stabilized his leadership role, after he decided last week to 
cede some of his powers to Premier Su Tseng-chang.  But in reality, 
Chen has seen his authority drastically undercut as a result of the 
move, leaving him now a weaker lame duck.  On the other hand, the 
public outrage triggered by corruption scandals shows no sign of 
abating as a result of a series of reform moves he took following 
his announcement to delegate all but certain powers specifically 
prescribed in the Constitution. ... 
 
"The situation could become even more difficult for Chen in the days 
ahead should prosecutors rush to prosecute Chao [i.e. Chen's 
son-in-law] on insider transactions alone and release him on bail, 
leaving all other allegations that implicate him to be probed in an 
uncertain future time.  Such a decision would be seen by the already 
angry public as a result of political intervention." 
 
YOUNG