VZCZCXYZ0016
RR RUEHWEB

DE RUEHIN #3706/01 3040938
ZNR UUUUU ZZH
R 310938Z OCT 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 2829
INFO RUEHBJ/AMEMBASSY BEIJING 5850
RUEHHK/AMCONSUL HONG KONG 7070

UNCLAS AIT TAIPEI 003706 
 
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: U.S. ARMS SALES TO TAIWAN 
 
 
¶1. Summary:  Taiwan's major Chinese-language dailies gave front-page 
coverage October 31 to a Financial Supervisory Commission member who 
was taken to a marathon questioning session Monday on suspicion of 
corruption.  Coverage also focused on the review of the National 
Defense Budget for fiscal 2007, which was suspended by the pan-Blue 
legislators Monday; on President Chen Shui-bian's naming Taiwan 
Semiconductor Manufacturing Co. chairman Morris Chang as Taiwan's 
envoy to this year's APEC forum; and on Chen's remarks that the push 
for a new constitution will gain momentum in 2007.  The 
pro-independence "Liberty Times," Taiwan's largest-circulation 
daily, ran a banner headline on page two that quoted Taiwan Defense 
Minister Lee Jye as saying "Arms Procurements Stalled; United States 
Suspends Military Exchanges [with Taiwan]." 
 
¶2. In terms of editorials and commentaries, an opinion piece in the 
pro-unification "United Daily News" said the DPP should modify its 
security concept of clinging tightly to the United States.  A column 
in the pro-status-quo "China Times" discussed AIT Taipei Director 
Stephen Young's recent remarks on U.S. arms procurements and a new 
perspective in the United States' Taiwan policy, namely, to maintain 
and expand hostility between the two sides of the Taiwan Strait. 
The article questioned Young's role and asked if it is worthwhile 
for the United States to make 'supporting Bian' its cause and 
consequently damage the Taiwan people's desire for clean government. 
 An editorial in the limited-circulation, conservative, 
pro-unification "China Post" suggested that Washington cancel the 
arms deal with Taiwan and not provide arms to President Chen, an 
"unpredictable troublemaker."  An editorial in the 
limited-circulation, pro-independence, English-language "Taipei 
Times," however, expressed full support for Young's remarks on the 
U.S. arms procurements, and an editorial in the limited-circulation, 
pro-independence, English-language "Taiwan News" urged the pan-Blues 
to "cease hypocritical politicization of Young's rude but timely 
reminder."  End summary. 
 
A) "Clinging Tightly on to the United States is the DPP's One and 
Only Strategy" 
 
Professor Barry Yu-chun Chen, the director of Chinese Culture 
University's Graduate School of American Studies, opined in the 
pro-unification "United Daily News" [circulation: 400,000] (10/31): 
 
"... In terms of the arms procurements, however, one must position 
oneself on higher ground to view the issue on top of the entangled 
interests in the United States and U.S.-Taiwan relations.  Some say 
that Taiwan's defense security will face an impasse if it fails to 
buy U.S. weapons this time.  But is the situation that serious?  The 
DPP government's concept of security is to cling tightly to the 
United States, but the question is: can one latch onto the United 
States at will?  Besides, it is questionable how tightly one can 
cling to the United States.  Over a long period of time, the United 
States' cross-Strait policy has its superficial part and its 
substantive part, but most importantly, the policy is decided by the 
U.S. global role and its international status and it also involves 
the current status and changes in the international situation.... 
 
"The mainstream thinking of the U.S. China policy is to learn to 
'adapt' to the rise of China and to urge China to become a 
'responsible stakeholder' with the United States. ...  Both the 
United States and Japan have understood China's significance in the 
globalized international situation, but many people in Taiwan still 
hold tightly to Cold War-like resistance thinking, refusing to 
accept the economic reality of the mainland.  Taiwan's predicament 
is a result of its self-isolation, and the Taiwan people must ponder 
its own interests rather than clinging tightly to other countries as 
its pledge for survival." 
 
B) "Stephen Young and the Narcissus Revolution" 
 
Columnist Nan Fang Shuo commented in the pro-status quo "China 
Times" [circulation: 400,000] (10/30): 
 
"... In reality, anyone who has some understanding of [U.S. 
President George W.] Bush's Taiwan policy since he rose to power in 
2001 is aware that maintaining the hostility between the two sides 
of the Taiwan Strait has emerged to be a new consideration for the 
United States' Taiwan policy.  To maintain and expand the hostility 
across the Taiwan Strait can deepen Taiwan's position as a strategic 
pawn of the United States, and it can also give the United States 
more room for maneuvering.  This new perspective of the United 
States has made Washington become more anxious in the wake of the 
visits to Beijing by [KMT Chairman] Lien Chan and [PFP Chairman 
James] Soong last year, which resulted in a better ambiance between 
the two sides of the Taiwan Strait.  Right at this moment, the 
anti-corruption and oust-Bian campaign in Taiwan triggered upheavals 
in Taiwan, which put the DPP in danger of losing its power.  The 
United States' ultimate position, without a doubt, was exposed at 
this moment, earlier than it planned.  Thus, what I saw from Stephen 
Young's remarks was Washington's anxiety, and its ultimate stance of 
 
being willing to support Bian to complete his term, even at the risk 
of offending Taiwan.  This is not the first time for the United 
States to do so.  In the wake of the pre-election shooting [attempt 
on President Chen] in 2004, the United States used delaying tactics 
by requesting that Lien and Soong stop demonstrations in exchange 
for the guarantee that the truth [of the shooting] be probed.  But 
in the end, it was the then-AIT Chairwoman Therese Shaheen who 
facsimiled a congratulatory message in the name of Bush to endorse 
the Bian regime.  Given what happened in 2004, Young's performance 
now would not be seen as a surprise. 
 
"But just because of this, Young, once an expert in the 'Narcissus 
Revolution' in Kyrgyzstan, is playing the role of anti-revolutionist 
in Taiwan today.  Just as what has cheered many DPP members, Young's 
clear indication of his position has given them addition faith in 
¶2008.  It's just that [given Young's remarks], the United States has 
made 'supporting Bian' and 'supporting corruption' as its cause and 
thus damaged the Taiwan people's yearning for clean government.  Is 
it worthwhile for the United States to do so?" 
 
C) "U.S. Should Cancel the Deal" 
 
The conservative, pro-unification, English-language "China Post" 
[circulation: 30,000] editorialized (10/31): 
 
"Six years after the rule of the pro-independence Chen-DPP 
government, Taiwan has become less predictable and responsible than 
before.  On the contrary, it is trying to rock the boat and wreck 
the status quo, ignoring others' interests, especially those of the 
U.S. ...  Had the Chen administration introduced the deal for 
legislation in 2001 or 2002, when its independence agenda was not 
well known, the opposition-dominated legislature would have approved 
it swiftly.  But Chen did not submit the bill to the legislature 
until after he won re-election on March 19, 2004, thanks to an 
election-eve vote-swaying assassination attempt on the president and 
vice president; the incumbent won with a margin of 0.2 percent of 
the 13 million total votes.  ... 
 
"If the weapons were in the hands of the KMT government, they would 
certainly help retain the regional status quo and defend Taiwan's 
freedom, democracy and prosperity against a forced unification with 
the mainland.  But it the weapons were in the hands of the 
independence activists, they would embolden them to push for 
Taiwan's de jure independence from China, prompting military 
retaliations by Beijing and dragging a reluctant U.S. into a 
conflict. ... 
 
"And for the first time, Stephen Young, the new director of the 
American Institute in Taiwan, stated in public immediately after his 
arrival in April that 'the U.S. opposes Taiwan independence,' 
instead of the usual 'doesn't support it.'  Then why provide massive 
arms to a known quantity who is 'unpredictable,' 'a troublemaker,' 
and one ready to 'bite the hand that feeds it?'" 
 
D) "Stephen Young Plays the Blues" 
 
The pro-independence, English-language "Taipei Times" [circulation: 
30,000] editorialized (10/31): 
 
"... The US wants and needs Taiwan to have an adequate defense 
capability so that Taipei can one day bargain with Beijing from a 
position of strength or, in the event of any conflict with China, 
hold on until the US arrives to help the nation defend itself. 
Young's words unsurprisingly upset the pan-blue camp, but since the 
budgets have been revised in accordance with its demands, the 
pan-blues have no excuse to vacillate any longer. ...  All this 
latest episode has done is again underline Chinese Nationalist Party 
(KMT) Chairman Ma Ying-jeou's impotence in the face of party 
hardliners.  All his talk of a 'reasonable' arms budget and promises 
to review the bill have amounted to nothing. ... 
 
"Ma and the rest of the pan-blues no doubt harbor profound unease at 
the fact that the ROC remains a 'sovereign country' only because of 
US support.  Those KMT legislators who show blatant disregard for 
Taiwan's security by blocking the bill would not occupy their 
privileged positions today were it not for the US' economic and 
military commitment to this country.  One possible reason for their 
recent behavior is that they are trying to sabotage relations with 
the US to make the Democratic Progressive Party government look 
incompetent in the eyes of the electorate and Washington.  But this 
could backfire, as many in Taiwan value a strong relationship with 
the US.  On the other hand, it could be part of a nave plan to 
unseat Young, who is disliked by the pan-blue camp because of his 
perceived pro-Taiwan stance and the fact that he is knowledgeable 
about local affairs. ... 
 
"What it boils down to is that the pan-blues do not like the US 
having a clued-up man in Taiwan who tells Washington exactly what is 
going on and does not pander to their every whim.  Thankfully, the 
 
State Department's statement on Friday indicates that Young has the 
full backing of the US government.  So, if that is the pan-blues' 
aim, then they are likely to fail.  If the electorate takes the 
State Department's words to heart and 'hold their leaders 
responsible' for these shenanigans, the political space for pan-blue 
hardliners will shrink.  The first test of this process will be the 
Taipei mayoral election." 
 
E) "Young's Rude but Timely Reminder" 
 
The pro-independence, English-language "Taiwan News" [circulation: 
20,000] (10/31): 
 
"... We urge leaders and lawmakers of both the KMT and PFP to cease 
their hypocritical politicization of Young's rude but timely 
reminder of the importance of Taiwan's investment in its own defense 
and the importance of such defense to regional security and 
re-examine their own irresponsible actions.  After all, the question 
of whether the pan-blue alliance has offered a legitimate reason for 
their boycott of proper legislative review and discussion of the 
defensive weapons procurement budget is the core of the controversy. 
... 
 
"Crises of 'foul' by the KMT and PFP would carry more weight were it 
not for the blatant double-dealing by the two parties, who 
successively first boycotted the draft bill authorizing a multi-year 
special budget, demanded that the allocations be inserted in the 
normal annual central government budget and then continued to 
boycott normal review even after the DPP-led Executive Yuan agreed 
to their demands.  Besides not having the decency to allow open 
debate in the Legislative Yuan, the pan-KMT leaders are guilty of 
willfully neglecting the clear and present danger to Taiwan's people 
of the rapidly deteriorating cross-strait military imbalance in 
favor of a hostile People's Republic of China. ...  Washington 
apparently has lost patience with the political game being played by 
the KMT and PFP at the expense of both the U.S. and Taiwan and, 
through Young, has sent a message calling on Taiwan politicians to 
refrain from abusing the U.S. pledge to help the country defend 
itself simply for their own partisan calculations. 
 
 
"It is easy to understand Soong's antics to keep right-wing support 
for his fading party, but Ma's empty words have shown a lack of 
integrity and a failure to face up to the question of how to defend 
Taiwan from China's military threat that is shocking in a candidate 
for national leadership. ...  We do not know whether Ma is putting 
this urgent issue on hold for reasons of partisanship or to curry 
favor with Beijing, but his delays are harming both the security of 
Taiwan's people and even his own credibility.  Young's action shows 
that the KMT and PFP cannot wash their hands of their responsibility 
in the possible deterioration of U.S.-Taiwan relations or in the 
security of the Taiwan people.  We urge the KMT chairman and his 
party legislators to put Taiwan's long-term national security and 
interests above their short-term partisan games and show Taiwan's 
public and the international community their commitment to bolster 
Taiwan's capability to defend itself.  Failure to do so will only 
expose Ma's unfitness to be Taiwan's national leader." 
 
YOUNG