VZCZCXYZ0007
RR RUEHWEB

DE RUEHIN #3141/01 2540930
ZNR UUUUU ZZH
R 110930Z SEP 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 2068
INFO RUEHBJ/AMEMBASSY BEIJING 5639
RUEHHK/AMCONSUL HONG KONG 6850

UNCLAS AIT TAIPEI 003141 
 
SIPDIS 
 
DEPARTMENT FOR EAP/TC, EAP/P, EAP/PD - DAVID FIRESTEIN 
DEPARTMENT PASS AIT/WASHINGTON 
 
SIPDIS 
 
E.O. 12958: N/A 
 
 
TAGS: OPRC KPAO TW
 
SUBJECT:  AIT DIRECTOR EXCHANGES VIEWS ON DEMOCRACY, DEFENSE WITH 
TAIWAN TV EXECUTIVES 
 
 
¶1. Summary: AIT Director Stephen M. Young hosted a luncheon Sept. 7 
at his residence arranged by PAS for senior news executives of 
Taiwan's six leading cable television news channels.  The luncheon 
was held to introduce Deputy Director Robert S. Wang and to exchange 
views on major issues.  The discussion on ranged from press freedom 
in Taiwan to U.S.-Taiwan-China relations, the growth of democracy in 
Taiwan, Taiwan's economic and political development, and the 
immediate need for the island to provide for its own defense.  End 
summary. 
 
¶2. Television is the most popular medium in Taiwan, and the cable 
penetration rate here is about eighty-five percent, one of the 
highest in the world. The six cable news channels represented at the 
Director's luncheon reach most of the television news audience.  The 
six channels also represent both Blue and Green camps; one, ERA-TV, 
claims to be neutral in Taiwan's politicized media environment. The 
guests at the luncheon were: 
 
Ms. May Chen (Chen Yi-mei), Senior Manager, TVBS 
Ms. Ann Hu (Hu Wan-ling), Executive, General News Dept., Formosa TV 
Mr. Liao Fu-shun, News Director, CTI-TV 
Mr. Jason Ma (Ma Yong-jui), Executive Vice President, ETTV 
Mr. Jeffrey Yen (Yen Chih-ching), Executive Vice President, ERA 
Television 
Mr. Yu Chao-Wei, News Manager, SET-TV 
 
¶3. Those present also included Acting PAO David E. Miller.  Topics 
discussed during the 90-minute gathering touched on a wide range of 
subjects:  press freedom in Taiwan, U.S.-Taiwan-China relations, the 
growth of democracy in Taiwan, Taiwan's economic and political 
development, and the immediate need for the island to provide for 
its own defense. 
 
¶4. During the course of the luncheon, Director Young pointed out 
that Taiwan and China have significantly improved their trade 
relations in recent years.  When one of the guests expressed the 
frequently-heard concern that Taiwan's economic dependence on China 
could hurt local businesses, Director Young noted that many Taiwan 
companies, including flat TV panel maker Chi Mei, have managed to 
maintain their competitiveness while diversifying their markets to 
include China.  Deputy Director Wang pointed out that not further 
liberalizing would eventually undermine Taiwan's overall 
competitiveness. 
 
¶5. Participants agreed with Director Young that Taiwan's media, 
which have enjoyed greatly increased freedom of speech and are known 
for their intensive reports on Taiwan's democratic development and 
criticism of government corruption, have even influenced mainland 
Chinese viewers and even coverage of news by Chinese media. 
Director Young, citing a recent decision by New York Yankees pitcher 
Chien-ming Wang to boycott interviews by Taiwan media in a bid to 
protect his family from further media harassment, engaged the 
executives in a discussion of where the line on coverage should be 
drawn.  They agreed that the free-wheeling Taiwan press was often 
intrusive, but also cited the pressure of ratings that drives their 
operations. 
 
¶6. At one point the luncheon discussion turned to the topic of U.S. 
arms procurements by Taiwan.  Responding to the comment that "Taiwan 
needs tanks, but the U.S. wants to sell it boots," Director Young 
emphasized Taiwan's need to ensure that it can provide for its own 
defense.  While Taiwan's lawmaking Legislative Yuan has blocked 
passage of a military budget earmarked for arms procurements from 
the United States since President Bush approved Taiwan's proposal in 
2001, the island is seeing a widening military gap with China, which 
has rapidly boosted its military capabilities in recent years.   One 
media executive, citing an unnamed Taiwanese military expert, said 
Washington has not responded to Taipei's request for more advanced 
weapons to fight possible cross-Strait electronic warfare.  In 
response, Director Young said that what the U.S. proposes to sell 
takes into consideration Taiwan's overall defense needs, not just 
individual weapons systems but all that goes with deploying them, 
including software, hardening, a supply chain, secure communications 
and training.  He told the media executives the arms procurement 
would offer Taiwan a good bargaining chip when facing a Chinese 
military buildup that threatens regional stability.  Director Young 
also reminded them that Taiwan's arms purchases could face a changed 
political environment in the United States, as mid-term elections 
come this year and presidential elections come in 2008. 
 
¶7. A discussion of the on-going movement calling for President Chen 
Shui-bian to step down led Director Young to say that the U.S. hopes 
the mass sit-in protest slated to begin Sept. 9 in Taipei would 
proceed peacefully, as Taiwan has moved toward greater democracy. 
He also proposed to meet with media executives again for more 
dialogues in the future, and promised to consider their requests for 
on-the-record interviews. 
 
 
YOUNG