VZCZCXYZ0014
RR RUEHWEB

DE RUEHIN #3120/01 2512313
ZNR UUUUU ZZH
R 082313Z SEP 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 2041
INFO RUEHBJ/AMEMBASSY BEIJING 5635
RUEHHK/AMCONSUL HONG KONG 6846

UNCLAS AIT TAIPEI 003120 
 
SIPDIS 
 
DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - DAVID FIRESTEIN 
DEPARTMENT PASS AIT/WASHINGTON 
 
SIPDIS 
 
E.O. 12958: N/A 
 
 
TAGS: OPRC KMDR KPAO TW
SUBJECT: MEDIA REACTION: CAMPAIGN TO OUST PRESIDENT CHEN, U.S. ARMS 
PROCUREMENTS, CROSS-STRAIT TRADE 
 
 
¶1. Summary:  Taiwan's major Chinese-language dailies gave 
significant coverage September 8 to the prosecutors' secret 
questioning of President Chen Shui-bian and First Lady Wu Shu-chen 
in August, and former DPP Chairman Shih Ming-teh's campaign to oust 
President Chen, which will kick off tomorrow.  The pro-unification 
"United Daily News" ran a front-page banner headline that said 
"Prosecutors:  Bian and Chen Are 'Potential Defendants.'"  The 
pro-status quo "China Times" also ran a banner headline on page two 
that read "Aware of, Authorized, and Assisted, Can Be Turned into 
Defendants at Any Moment; Bian, Chen Can Hardly Get Rid of Fact Were 
Accomplices to Forgery."  With regard to the U.S. arms procurements, 
several papers reported on inside pages that KMT Chairman Ma 
Ying-jeou and Legislative Yuan President Wang Jin-pyng agreed 
Thursday that the U.S. arms procurement bill will be reviewed in the 
upcoming legislative session. 
 
¶2. In terms of editorials and commentaries, an editorial in the 
pro-independence "Liberty Times," Taiwan's biggest daily, criticized 
the campaign to oust President Chen, saying it will be heavy cost 
for Taiwan society.  A "China Times" editorial, however, said the 
campaign is a result of the Taiwan people's constitutional right to 
tell Chen that they will no longer tolerate his corruption and 
disgraceful behavior.  An opinion piece in the mass-circulation 
"Apple Daily" discussed the arms deal of F-16C/D fighter jets, 
saying that Taiwan's inner polarities, stalemate, and political 
struggles over the past few years have completely exhausted the 
island's resources in building Taiwan-U.S. strategic relations.  An 
editorial in the limited-circulation, conservative, pro-unification, 
English-language "China Post" commented on cross-Strait trade 
relations, saying closer ties with China will contribute to 
stability in the Taiwan Strait and help to improve Taiwan's economy. 
 End summary. 
 
¶3. Campaign to Oust President Chen 
 
A) "Democratic Nations Should Not Have Violent and Intense 
Protests" 
 
The pro-independence "Liberty Times" [circulation: 600,000] 
editorialized (9/8): 
 
"... The sit-in rally to oust Bian is about to kick off, and the 
stern atmosphere of confrontation will again prevail in Taiwan 
society.  The general pubic will surely feel disturbed all the time 
under circumstances in which conflicts may easily break out at any 
moment.  In particular, the fact that the leaders of the protests 
have repeatedly announced in a brutal language that they have no 
plans to back down also add unpredictable variables to the rally, 
and will surely create heavy costs for our society.  Frankly 
speaking, Shih Ming-teh's campaign to oust Bian is part of the means 
constantly adopted by the anti-Bian camp following the transfer of 
power in 2000; it is also an extension of the polarity between the 
Blue and Green camps in society.  There is no need to underscore the 
historical significance of such a movement here.  But for President 
Chen Shui-bian, who has been a ruler for over six years, he really 
needs to review and reflect on himself for his failure to eliminate 
the conflicts between different political parties and between 
different ethnic groups. ..." 
 
B) "Let Taiwan's History Remember this September" 
 
The pro-status quo "China Times" [circulation: 400,000] 
editorialized (9/8): 
 
"... Back to the question itself, this rally is [the result of] a 
constitutional right exercised by the people on their accord, and 
its objective is directly pinned on the corruption and disgraceful 
behavior of the state leader.  The people may have used their votes 
to re-elect President Chen two years ago, but two years later, 
Chen's conduct proves that he is no longer suitable to stay on in 
his position.  Given the DPP's obstruction, the people were not 
given an opportunity to vote Chen out.  They could only choose to 
voice their outrage on Ketagalan Boulevard, where Chen goes to work 
every day, to let the president know that the people are no longer 
willing to stand idly by and tolerate Chen and his family's alleged 
involvement in all the corruption scandals concerning stocks, gift 
certificates, jewelry assets, and the special state affairs fund. 
... 
 
"We have always believed that it is the ruling party that should 
feel most worried.  They should know that Chen has openly 
acknowledged that [his family] has accepted SOGO Department Store 
gift certificates and that other people's invoices and receipts were 
used to claim reimbursement from the Presidential Office's state 
affairs fund.  The prosecutors have clearly indicated that Chen and 
the First Lady may 'very likely' have been involved in forgery and 
corruption, and suggested that they be accompanied by their lawyers. 
 As the situation stands now, the DPP not only overlooked what is 
 
happening but has also tried its best to side with Chen and conceal 
his faults.  The only action the DPP took was to see Chen off and 
welcome him back at the airport en masse.  The DPP's action 
indicated that the party is determined to put aside the core values 
they once embraced and has chosen to side with corruption, which 
Chen is involved in.  Perhaps the DPP is anticipating that the rally 
to oust Bian will have a magnificent beginning but a poor finish, or 
that it will hardly sustain; or the party may also believe that Chen 
will survive eventually.  There is such a possibility, but the DPP 
must be mentally prepared that should an unprecedented large crowd 
gather, its protest energy will be unprecedented, and the effect 
triggered by this rally in Taiwan and even in the international 
community will not be easily underestimated. ..." 
 
¶4. U.S. Arms Procurements 
 
"Use F-16 C/D Fighter Jets to Demonstrate [Taiwan's] Determination 
of Arms Procurements" 
 
Mei Fu-hsing, director of the "Taiwan Defense Review," noted in the 
mass-circulation "Apple Daily" [circulation: 500,000] (9/8): 
 
"... Other complicated factors are also involved in the F-16s deal. 
The Bush administration reasoned that Taiwan has yet to make a final 
decision on the procurement of the weaponry package it agreed to 
sell to the island in 2001.  Taiwan's internal political factors 
have constantly resulted in the stalling of the three major weapons 
deal.  The United States, on the other hand, believes that over the 
past five years it has paid a high price for the deal in terms of 
its relations and commercial interests with Beijing.  Washington is 
not willing to approve any other major arms deal before Taipei is 
sure of its procurement and guarantees it has the budget for such 
deals, so as to prevent triggering any pressure or retaliation from 
Beijing.  Under such circumstances, to insist that the military get 
a formally approved quotation from the U.S. first is akin to the 
problem of which comes first, the chicken or the egg.  Of course, 
this is also a posture deliberately made by the United States at the 
current stage in order to push Taiwan's ruling and opposition 
parties to handle the arms procurement bill as early as possible. 
... 
 
"The U.S. put out an indicator position of 'we'll talk after you 
have the money' with regard to its arms sales to Taiwan.  Such a 
move has in reality indicated that Taiwan's major diplomatic 
achievement of having the arms procurements processed through a 
normal channel ... has become a hollow victory.  The sadder fact is 
that within just five years, Taiwan's inner polarities, long-term 
stalemate, and political struggles have completely eroded the 
island's resources in building Taiwan-U.S. strategic relations." 
 
 
¶5. Cross-Strait Trade 
 
"Closer Ties with China Needed for Peace, Growth" 
 
The conservative, pro-unification, English-language "China Post" 
[circulation: 30,000] editorialized (9/8): 
 
"There was recently a debate between the American Chamber of 
Commerce in Taipei (AmCham) and the Taiwan Solidarity Union (TSU) 
about relations between Taiwan and mainland China.  It was an 
interesting argument deserving attention from those concerned about 
the island's future. ...  In our view, increased cross-strait trade 
relations can contribute to stability in the Taiwan Strait and lead 
to improvement in the Taiwan economy.  The government's current 
restrictions on cross-strait trade have been impeding economic 
growth.  Taiwan will be further isolated and marginalized if it 
shuts its doors to interaction with the fast-growing mainland 
market." 
 
YOUNG