VZCZCXYZ0007
RR RUEHWEB

DE RUEHIN #2554/01 2120126
ZNR UUUUU ZZH
R 310126Z JUL 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 1325
INFO RUEHBJ/AMEMBASSY BEIJING 5484
RUEHHK/AMCONSUL HONG KONG 6691

UNCLAS AIT TAIPEI 002554 
 
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 SUSTAINABLE ECONOMIC DEVELOPMENT 
CONFERENCE, KMT CHAIRMAN MA'S TRIP TO JAPAN 
 
 
¶1. Summary:  Taiwan's major Chinese-language dailies gave 
significant coverage July 28 to a Ministry of Audit report Thursday 
concerning "possible irregularities" in the Presidential Office's 
allowance for state affairs.  News coverage also focused on the 
Taiwan Sustainable Economic Development Conference, which will 
conclude today; and investigation into a cable car construction 
corruption case involving the vice minister of interior.  The 
pro-unification "United Daily News" ran a front-page banner headline 
that read "Presidential Office Allegedly Involved in Illegal Use of 
Allowance for State Affairs," and the front-page headline in the 
pro-status quo "China Times" said "Bian's State Affairs Fund Will 
Have to Be Returned and [Relevant Officials] Will Face Charges." 
 
The "China Times" also carried the results of its latest survey on 
page five, which showed that the approval rating for Premier Su 
Tseng-chang, the DPP's presidential hopeful for 2008, dropped from 
 
SIPDIS 
45 percent to 32 percent in four months.  The poll also found that 
if KMT Chairman Ma Ying-jeou and Premier Su compete for presidency 
in 2008, 42 percent of respondents said they would support Ma, while 
18 percent said they would vote for Su.  The "United Daily News," in 
addition, has for the third consecutive day dedicated one or more 
inside pages to Beijing's preparations for the 2008 Olympic Games. 
 
 
¶2. In terms of editorials and commentaries, an editorial in the 
pro-independence "Liberty Times," Taiwan's biggest daily, criticized 
some Blue supporters and pro-China media outlets for attempting to 
interpret the Taiwan Sustainable Economic Development Conference 
from the perspective of political schemes and power.  A "China 
Times" editorial, on the other hand, questioned how long Taiwan's 
economy will have to be hijacked by the Green fundamentalists.  An 
editorial in the limited-circulation, pro-independence, 
English-language "Taiwan News," however, discussed KMT Chairman Ma 
Ying-jeou's recent trip to Japan, saying the KMT's pro-China 
mentality is the main reason for the cool reception Ma received in 
Japan.  End summary. 
 
¶3. Taiwan Sustainable Economic Development Conference 
 
A) "How Can Cross-Strait Trade and Economics Be Interpreted in Terms 
of Political Schemes and Power?" 
 
The pro-independence "Liberty Times" [circulation: 600,000] 
editorialized (7/28): 
 
"A noteworthy phenomenon during the controversial Taiwan Sustainable 
Economic Development Conference was that when discussing 
cross-Strait trade and economic policies, the side calling for 
opening and more relaxation was labeled by the Blue camp as the one 
adopting the Su revisionist line, while the other side that 
emphasized management and tightening was tagged as Taiwan 
independence fundamentalists.  The former was viewed as an 
aggressive attempt by Premier Su Tseng-chang to draw a line between 
himself and President Chen's proactive management policy and to pave 
the way for his presidential campaign in 2008.  The latter, on the 
other hand, was regarded as joint efforts by former President Lee 
Teng-hui and Chen to attack Su from both sides, in an attempt to 
consolidate the core Green supporters.  This attempt to interpret 
the motives for the debate over cross-Strait trade and economic 
policy from the perspective of power struggles and campaign 
interests is evidently a ridiculous, gross mistake. ..." 
 
B) "How Long Will Taiwan's Economy Be Hijacked by the 
Fundamentalists?" 
 
The pro-status quo "China Times" [circulation: 400,000] 
editorialized (7/28): 
 
"... Viewed as a whole, the discussions over cross-Strait trade and 
economics during the Taiwan Sustainable Economic Development 
Conference were very much like a killing field for the 
fundamentalists.  These fundamentalists used discredited economic 
discourse to try to stop the big trend of cross-Strait trade and 
economic development.  Participants in the Sustainable Economic 
Development Conference said these people slashed and boycotted any 
proposals made at the conference concerning cross-Strait opening 
without any reasons.  They even called for legislation of bills to 
ban or regulate 'lobbying for mainland China.'  Such a legislative 
move that suppresses the freedom of speech of other people, in an 
attempt to shape restricted, uniform articulation and thereby 
control the terrain of debating Taiwan's trade policy, would not 
only disrupt the normal mechanism with which a policy is formed, but 
also ruin Taiwan's democratic foundation.  The move thus deserves 
severe criticism.  In the face of this anti-democratic approach, it 
is indeed a big problem for the administrative branch to break the 
deadlock. ..." 
 
¶4. KMT Chairman Ma's Trip to Japan 
 
 
"Ma Risks Security with Myth of 'Equal Distance'" 
 
The pro-independence, English-language "Taiwan News" [circulation: 
20,000] editorialized (7/28): 
 
"... The most worrisome position floated by the KMT chairman during 
his Japan visit was almost entirely ignored by the Taiwan media, 
namely Ma's openly expressed reservations about the role of the 
U.S.-Japan Security alliance in the Asia-Pacific region.  ...  When 
senior U.S. and Japan diplomats proposed the provision of assistance 
to crate a balance in the Asia-Pacific region and an environment 
favorable for the development of Chinese democracy, the KMT adopted 
an evasive stance.  Instead, the KMT treated the 'U.S.-Japan 
Alliance' and 'Taiwan-China relations' as 'zero-sum games' and 
expressed considerable apprehension that good relations between 
Taiwan and the 'U.S.-Japan Security Alliance' would influence 
relations between Taipei and Beijing.  As a result, the adoption of 
an apparent strategy of 'neutrality for neutrality's sake' by the 
KMT could well lead to Taiwan's strategic isolation and eventual 
subordination to the PRC. 
 
"In considering the Taiwan Strait issue, we must understand that the 
traditional 'U.S.-China-Taiwan triangle' can no longer cope with the 
current strategic situation in the Taiwan Strait. ...  Japan's 
strategic concepts and its expectations toward both Taiwan and the 
PRC will also become one of decisive factors that will affect the 
formation of the strategic situation in the Taiwan Strait.  Facing 
today's situation in East Asia, the KMT is still mired in the 
'strategic ambiguity' mentality of the previous few decades and has 
entirely placed its hopes for the future of Taiwan's economy, 
security and development on the PRC, fears only offending Beijing 
and no longer cares for the relationships with the United States or 
Japan. 
 
"Senior Japanese officials are reported to be especially concerned 
over Ma's concept of promoting 'equal distance' between Taiwan and 
the United States, Japan, and the PRC and his willingness to accept 
the framework of the mythical 'Consensus of 1992' which constitutes 
an acceptance of Beijing's 'one China' principle. ...  This ostrich 
mentality and the KMT's wishful thinking of the 'goodwill' of an 
authoritarian and militaristic power instead of two long-time 
democratic partners threaten to exacerbate Taiwan's diplomatic and 
security isolation and pave the way for a massive strategic 
disaster.  Fear of this specter is the main reason for the cool 
reception given Ma and his KMT delegation in Japan." 
 
YOUNG