VZCZCXYZ0013
RR RUEHWEB

DE RUEHIN #2572/01 2130846
ZNR UUUUU ZZH
R 010846Z AUG 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 1355
INFO RUEHBJ/AMEMBASSY BEIJING 5499
RUEHHK/AMCONSUL HONG KONG 6706

UNCLAS AIT TAIPEI 002572 
 
SIPDIS 
 
DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - SCOTT WALKER 
DEPARTMENT PASS AIT/WASHINGTON 
 
SIPDIS 
 
E.O. 12958: N/A 
 
 
TAGS: OPRC KMDR KPAO TW
SUBJECT: MEDIA REACTION: MIDDLE EAST, U.S.-TAIWAN RELATIONS, NORTH 
KOREA 
 
 
¶1. Summary:  Taiwan's major Chinese-language dailies continued to 
focus their coverage August 1 on the investigations into "possible 
irregularities" in the Presidential Office's special state affairs 
expensure account and the Sogo Department Store gift certificate 
case; the salary of a housekeeper who works for President Chen's 
daughter but has been paid out of public funds; and a Taipei 
District Court ruling Monday that the bail for President Chen 
Shui-bian's son-in-law on charges of insider trading should be 
continued.  The pro-independence "Liberty Times," Taiwan's biggest 
daily, however, dedicated its first and third pages to a Hong Kong 
newspaper report, which said that China Central Television is 
interested in purchasing TVB, Hong Kong's largest TV network and the 
principal shareholder of Taiwan's TVBS broadcasting network. 
 
¶2. In addition, Taiwan has finally turned its eyes to the war in the 
Middle East.  Several Chinese-language papers dedicated one or more 
inside pages to reporting on Israel's raids in Lebanon.  In terms of 
editorials and commentaries, an opinion piece in the pro-status quo 
"China Times" said Israel's invasion of Lebanon is nothing but part 
of the bigger chess game, in which the U.S.-led superpowers are 
re-formulating geopolitics in the Middle East and Central Asia.  An 
analysis in the pro-unification "United Daily News" noted that if 
Israel continues to play the role of a victim, peace in the Middle 
East will be a distant dream.  An editorial in the 
limited-circulation, conservative, pro-unification, English-language 
"China Post" discussed the possibility of Taiwan signing a Free 
Trade Agreement with the United States.  An opinion piece in the 
limited-circulation, pro-independence, English-language "Taipei 
Times," on the other hand, said there is a silver lining for Taiwan 
in the recent North Korean crisis.  End summary. 
 
¶3. Middle East 
 
A) "How Taiwan Should Look at War in Lebanon" 
 
Yang Wei-chong, a Standing Committee member of the Workers' 
Democracy Association, opined in the pro-status quo "China Times" 
[circulation: 400,000] (8/1): 
 
"... Not even the world's mainstream media outlets are able to cover 
up Israel's intentions. ...  In the final analysis, this 'Israeli 
invasion supported by the United States,' as named by international 
anti-war activists, is nothing but a part of the bigger chess game 
in which the U.S.-led superpowers are re-formulating geopolitics in 
the Middle East and Central Asia.  This chess game started with the 
war in Afghanistan, was followed by the invasion of Iraq, and the 
current Israeli military action just created a climax for the game. 
The purpose of such a chess game is to ensure that the United States 
and its 'attendants' can thoroughly control this area.  It is thus 
not difficult for us to understand why U.S. Secretary of State 
Condoleezza Rice believes that it is 'too early' for a cease-fire 
and why U.S. President Bush took no action except to say he was 
sorry about the civilian casualties in Lebanon.  Now international 
observers have started to discuss the possibility of an upgraded war 
in the Middle East.  But despite the various views, it is not 
difficult to imagine that the United States will take direct action 
against Syria and Iran sooner or later, since the two nations have 
always had profound interests in and associations with Lebanon. ..." 
 
 
B) "It's All Hezbollah's Fault?" 
 
European correspondent Chen Yu-hui noted in the pro-unification 
"United Daily News" [circulation: 400,000] (8/1): 
 
"... The international community's hesitation in articulating its 
position has, in reality, revealed its tacit agreement to Israel's 
right of self-defense.  But over the past few days, Israel's 
over-reaction has gone beyond the limits of self-defense, and its 
actions clearly indicated Israel's desire to punish the entire 
Lebanese people for just a few extremists. ... 
 
"Israel is the strongest country in the Middle East, but it always 
sees itself as a victim. ...  If Israel continues to stick to the 
role of a victim, it will put itself in an even more unfavorable 
position.  Israel has not only launched a war that it will never 
win, but will also trigger more and more suicidal attacks from the 
radical Islamic groups.  Israel's move is akin to getting itself 
into trouble and making peace in the Middle East a dream for the 
indefinite future. ..." 
 
¶4. U.S.-Taiwan Relations 
 
"No San-tong, No U.S. FTA" 
 
The conservative, pro-unification, English-language "China Post" 
[circulation: 30,000] editorialized (8/1): 
 
"The U.S. has bluntly warned the pro-independence government of 
President Chen Shui-bian that it will not negotiate a Free Trade 
Agreement (FTA) with Taiwan unless the island opens san-tong (three 
direct transport links) with the mainland, the island's biggest 
export market. ...  Despite its rhetoric, Beijing's opposition to a 
U.S. FTA with Taiwan is half-hearted because the pact would 
strengthen the U.S. reign over the island's separatist leadership. 
The U.S. supports Beijing's 'one China' principle. ... 
 
"Last week's Conference on Sustainable Economic Development, the 
second in five years, failed again to pave the way for direct 
cross-Strait flights and the easing of a 40-percent cap on 
investments in China, which remains Taiwan's most disfavored trading 
partner.  No wonder, few investors and businessmen would place their 
eggs in the Taiwan basket." 
 
¶5. North Korea 
 
"The North Korea Impasse and Taiwan" 
 
Commentator Li Thian-hok opined in the pro-independence, 
English-language "Taipei Times" [circulation: 30,000] (8/1): 
 
"... For Taiwan, there is a silver lining in the recent Korean 
crisis.  First, the US may decide to expand and increase funding for 
its missile defense system.  As this system become more effective, 
it will be easier for the US to help defend Taiwan if China attacks, 
since a Chinese nuclear threat will be less credible.  Second, this 
month the Pentagon will start relocating the Patriot Advanced 
Capability-3 system, along with 600 specially-trained troops from 
Texas to Okinawa.  While designed to defend Japan, the PAC-3 system 
could also be useful in a Taiwan contingency.  Finally, the North 
Korea missile test could influence the election of Japan's new Prime 
Minister next month, to the benefit of Taiwan.  The two main 
contenders are Yasuo Fukuda, who is more pro-China, and Shinzo Abe, 
who is more appreciative of Taiwan's strategic importance to Japan's 
vital sea lanes.  Fukuda has reportedly been gaining on Abe, partly 
because of Beijing's calculated peace offensive. 
 
"For Taiwan, the North Korean missile tests should reinforce the 
urgent need to strengthen national defense, including the 
development of offensive missile capabilities, such as cruise 
missiles.  Taipei should also be diligent in cooperating with the 
U.S.-led Proliferation Security Initiative, a multi-state program 
designed to interdict transfer of weapon of mass destruction and 
other illicit materials." 
 
YOUNG