VZCZCXYZ0002
RR RUEHWEB

DE RUEHIN #2845/01 2290854
ZNR UUUUU ZZH
R 170854Z AUG 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 1684
INFO RUEHBJ/AMEMBASSY BEIJING 5547
RUEHHK/AMCONSUL HONG KONG 6761

UNCLAS AIT TAIPEI 002845 
 
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: U.S.-TAIWAN FTA, TAIWAN POLITICAL 
SITUATION 
 
 
¶1. Summary: Taiwan's major Chinese-language dailies continued to 
focus their coverage August 17 on former DPP Chairman Shih 
Ming-teh's efforts to oust President Chen Shui-bian, and 
investigations into the Presidential Office's special state affairs 
expense account.  The mass-circulation "Apple Daily" ran an 
exclusive story on page two with the headline "DPP's Approval Rating 
in Taipei City Drops to Eight Percent."  The pro-status quo "China 
Times," on the other hand, ran a banner headline on page two that 
said "Tension in Bian-Su Relationship?  DPP Senior: Su May Step Down 
Earlier Than Bian Does."  Several papers also carried the remarks by 
AIT Taipei Director Stephen Young at the ROC-USA Business Council 
Wednesday, in which Young commended Premier Su Tseng-chang for 
convening the Conference on Sustaining Taiwan's Economic Development 
and discussing the benefits and risks to Taiwan's economy of further 
cross-Strait opening. 
 
¶2. In terms of editorials and commentaries, a news analysis in the 
pro-status quo "Commercial Times' discussed the possibility of 
Taiwan signing a free trade agreement (FTA) with the United States, 
saying that Taiwan's own attitude is the key barrier to the 
U.S.-Taiwan FTA.  An editorial in the pro-independence "Liberty 
Times," Taiwan's biggest daily, on the other hand, praised former 
President Lee Teng-hui's recent suggestion to replace the expression 
'nativist regime' with the term 'Taiwan-centered regime.'  An 
opinion piece in the limited-circulation, pro-independence, 
English-language "Taipei Times" criticized former DPP Chairman 
Shih's campaign to oust President Chen, saying it shows no advance 
toward democracy and the rule of law.  End summary. 
 
¶3. U.S.-Taiwan FTA 
 
"It's a Long Way to Get the Wished-for FTA" 
 
Journalist Tan Shu-chen noted in the pro-status quo "Commercial 
Times" (8/17): 
 
"There is hardly any progress with regard to Taiwan's long-term 
efforts to seek to sign a free trade agreement (FTA) with the United 
States, and Taiwan has claimed that it was because of Beijing's 
political interference.  But to judge from AIT Taipei Director 
Stephen Young's speech, we finally have realized that the key 
barrier to a Taiwan-U.S. FTA is Taiwan's own attitude.  The American 
Chamber of Commerce in Taipei reminded the Taiwan government several 
times that Congress' fast-track Trade Promotion Authority will 
expire in July 2007, and it is thus a matter of great urgency for 
Taiwan and the United States to sign a FTA.  To increase the 
incentives for the United States to sign a FTA with Taiwan, American 
firms suggested that Taiwan quickly remove its restrictions on 
cross-Strait trade and let mainland China become a hinterland of 
Taiwan's market.  Meanwhile, American firms would use every channel 
they know to lobby the U.S. Congress to extend the Trade Promotion 
Authority. 
 
"But Taiwan went the opposite direction.  What Taiwan has been doing 
is to keep circling in the outer lane.  Even if the island has 
mobilized many 'friendly' groups to campaign for Taiwan, there is 
still no incentive for the United States to sign a FTA.  As a 
result, Washington appears to be unresponsive to Taiwan's 
clarifications. ...  It is noteworthy though, that in the wake of 
the Conference on Sustaining Taiwan's Economic Development, the 
public generally believe that the Su revisionism, which indicated 
the possibility of Taiwan easing its restrictions on cross-Strait 
interaction, is discarded.  But Young mentioned Su's revisionism [in 
his speech] and said he wanted to applaud Su [for that].  At this 
moment, when President Chen is plagued by scandals and the United 
States has assessed that his leadership is at a critical stage, 
Washington has given policy recommendations to Taiwan via Young's 
mouth.  The DPP government should really give thought to what this 
move indicates after all." 
 
¶4. Taiwan's Political Situation 
 
A) "'Taiwan-Centered Regime' and 'Taiwan People in a New Era'" 
 
The pro-independence "Liberty Times" [circulation: 600,000] 
editorialized (8/17): 
 
"Former President Lee Teng-hui said recently that Taiwan is already 
an independent sovereign state, and rectifying Taiwan's name and 
writing a new constitution are things Taiwan must do.  But since the 
expression 'nativist regime' indicates separatism, which may lead to 
division and confrontation, Lee suggested that Taiwan society use 
'Taiwan-centered regime' to replace 'nativist regime' in the future, 
and those who identify with 'Taiwan' should be regarded as 'Taiwan 
people in a new era.'  Given the current situation, which is full of 
political upheaval and confusion over identity and values, Lee's 
suggestion to replace the expression 'nativist regime' with 
'Taiwan-centered regime' helped to clarify the confusion and may 
 
even direct Taiwan toward a new way out of the current Blue-Green 
confrontation. ...  In other words, it is a leap for Taiwan history 
and further consolidation of Taiwan-centered consciousness to move 
from a 'nativist regime' to a 'Taiwan-centered regime,' and from 
'Taiwan people' to 'Taiwan people in a new era.'" 
 
B) "Shih's New Campaign Is a Sorry Tale" 
 
Linda Gail Arrigo, the ex-wife of former DPP Chairman Shih Ming-teh 
and the international officer for the Green Party Taiwan, opined in 
the pro-independence, English-language "Taipei Times" [circulation: 
30,000] (8/17): 
 
"... Corruption has been long ingrained in Taiwan society, down to 
the lowest levels, and the change of ruling parties has only begun 
to alter the rules.  We cannot defend the DPP in general or the 
president in particular in so far as they have taken the easier 
route of continuing past habits, trying to buy off the obstacles, 
and perhaps even lining their own pockets with unearned rewards. 
But [is] his campaign for Chen to step down now, without use of the 
present mechanisms of impeachment or recall, any advance toward 
democracy and the rule of law?  Does it test or improve the present 
legal system?  Or would it be a step back to the KMT's former easy 
appropriation of state resources and assets, which we can assume 
will rebound again with vengeance if KMT Chairman Ma Ying-jeou 
becomes president? 
 
"So why has Shih got involved in politics again?  It seems 
anachronistic for him to raise the specter of revolution, when now 
finally the citizens can exercise their right to vote.  Does he have 
a long-term vision of what he wants?  Does he still stand for 
Taiwan's emergence as an internationally recognized nation?  Or has 
he abandoned the ideals that he sacrificed 25 years of his life for, 
too?" 
 
YOUNG