VZCZCXYZ0008
RR RUEHWEB

DE RUEHIN #2469/01 2020905
ZNR UUUUU ZZH
R 210905Z JUL 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 1205
INFO RUEHBJ/AMEMBASSY BEIJING 5446
RUEHHK/AMCONSUL HONG KONG 6651

UNCLAS AIT TAIPEI 002469 
 
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:  TAIWAN'S POLITICAL SITUATION 
 
 
¶1. Summary:  Taiwan's major Chinese-language dailies focused their 
coverage July 21 on the decision by the Taipei District Court 
Thursday to continue President Chen Shui-bian's son-in-law's release 
on a higher bail of NT$17 million; the detention of Vice Minister of 
Interior Yen Wan-chin for alleged involvement in a corruption case; 
the Financial Supervisory Committee's penalties on a local financial 
holding company; First Lady Wu Shu-chen's alleged involvement in the 
Presidential Office's allowance for state affairs; and the Han Kuang 
No. 22 military exercise.  Former Senior Advisor to the President 
Koo Kuan-min posted a half-page advertisement in several major 
Chinese-language papers Thursday, saying President Chen should stay 
on in his position, and calling on DPP members and pro-Green 
scholars to give Chen another six months to carry out his previous 
promises to the Taiwan people. 
 
¶2. In terms of editorials and commentaries, an editorial in the 
pro-independence "Liberty Times," Taiwan's biggest daily, urged the 
Executive Yuan not to repeat its mistakes in opening cross-Strait 
trade and investment.  Three local English-language papers 
editorialized on the current predicament facing President Chen and 
the DPP.  Editorials in the limited-circulation, pro-independence, 
English-language "Taipei Times" and "Taiwan News" both said Chen 
should not step down, but should complete the four-year mandate he 
received 2004.  An editorial in the limited-circulation, 
conservative, pro-unification, English-language "China Post," 
however, suggested that the DPP bravely face Chen and the party's 
political crisis and "show Chen the door."  End summary. 
 
A) "Executive Yuan Must Not Become a Historical Sinner That Loses 
Taiwan's Lifeline for Good" 
 
The pro-independence "Liberty Times" [circulation: 600,000] 
editorialized (7/21): 
 
"... As the key sponsor of the Sustainable Economic Development 
Conference, a clear line that the Executive Yuan must grasp in 
particular is the fact that cross-Strait relations are an important 
part of the island's national security, which is under the 
president's powers, as stipulated in the Constitution.  This 
authority is different from the party and governing powers President 
Chen said he would relinquish in late May.  To put it plainly, it is 
always the president who decides on policies related to cross-Strait 
relations, and the Executive Yuan is simply the government agency 
that implements the policies.  ... 
 
"The Sustainable Economic Development Conference's focus on 
cross-Strait relations should thus be placed on adopting proactive 
moves to improve the island's current economic status, which leans 
heavily towards China.  In particular, the government must not 
repeat the mistakes it made in the previous Economic Development 
Advisory Conference.  Five years ago, the ruling authorities 
abandoned the 'No Haste, Be Patient' policy on cross-Strait trade 
and economics, and replaced it with an ambiguous slogan of 
'Proactive Opening, Effective Management.'  With some implementation 
errors, the government actually paid attention to the 'proactive 
opening' part only, which led to the undesirable consequences of 
having Taiwan's economy rely heavily on China.  The Executive Yuan 
must not repeat its mistakes, or it will become a historical sinner 
that loses Taiwan's lifeline for good." 
 
B) "Some Advice for Chen Shui-bian" 
 
The pro-independence, English-language "Taipei Times" [circulation: 
30,000] editorialized (7/21): 
 
"President Chen Shui-bian is probably under more pressure now than 
at any other time in his life, with serious personal problems at 
home and mounting stresses in his job. ...  But it is in the worst 
of times that true leadership comes to the fore.  It is now that the 
president should stand up and commit himself to the job at hand, 
making full use of his last 18 months in office.  It is no time to 
turn back - the legacy of the Chen administration depends on taking 
the initiative and looking forward. ... 
 
"Other than talking less and pushing his family to the background, 
the policy areas the president could address with some urgency 
include:  pushing ahead with the proposed statute on stolen party 
assets, speeding up the next stage of financial reform, selling off 
the government's multitude of state-owned enterprises, bringing the 
Lafayette frigate scandal to a close and ensuring the opening of the 
high-speed rail system.  Indeed, the list of things to do is long 
and behind schedule.  Chen still holds the nation's top job.  He 
should start to act like it." 
 
C) "DPP's Task Now Is to Move Onward" 
 
The pro-independence, English-language "Taiwan News" [circulation: 
20,000] noted in an editorial (7/21): 
"The governing Democratic Progressive Party faces a decisive turning 
point tomorrow with the convention of a crucial party congress, the 
result of which may well determine the fate of the 20-year-old 
organization and the future of Taiwan's democracy. ...  For reasons 
of both political responsibility and for the future of Taiwan's 
democratic progress, we also oppose the resignation of President 
Chen.  Instead, we argue from the standpoints of political 
responsibility and respect for democratic institutions, that Chen 
should complete the four-year mandate which he received from the 
majority of the Taiwan people on March 20, 2004. ... 
 
"We strongly urge the DPP leadership to reaffirm the party's role 
and commitment to promote the 'Taiwan road' of 'democracy, freedom, 
human rights, peace, social justice and sustainability' and recall 
that its base of support lies among Taiwan's ordinary people and not 
among the ranks of big business, whose favorite party remains the 
KMT.  Last but not least, the DPP must respond to the concerns of 
the vast majority of the Taiwan people and ensure that Taiwan's 
economic and social development retains its autonomy, without which 
our political self-determination would be difficult to defend." 
 
D) "DPP Faces a Tough Choice" 
 
The conservative, pro-unification, English-language "China Post" 
[circulation: 30,000] said in an editorial (7/21): 
 
"... The fact is, almost every DPP member is aware now that Chen, 
who used to play a key role in keeping the DPP strong and coherent, 
has become a liability rather than an asset of the party.  The 
recent series of events surrounding him and his family have done so 
much damage to the DPP that the party might be better off without 
him. ...  As one DPP lawmaker said after Chao Chien-ming was 
indicted, this case has imposed the death penalty on the party.  DPP 
members, and the party's heavyweights, should bravely face the issue 
that's bringing the party to its demise.  They must have the courage 
to show Chen the door if they want their party to survive." 
 
YOUNG