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C O N F I D E N T I A L SECTION 01 OF 02 SUVA 000427 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 10/13/2016 
TAGS: PREL PGOV EAID TW NR FJ CH XU
SUBJECT: TAIWAN PRESIDENT CHEN'S VISIT TO NAURU; READ-OUT 
ON PACIFIC ALLIES SUMMIT 
 
REF: KOROR 277 
 
Classified By: AMBASSADOR LARRY M. DINGER.  SECTIONS 1.4 (B) AND (D). 
 
¶1. (C)  Summary:  According to Australia's Consul General in 
Nauru, security concerns were paramount during Taiwan 
President Chen Shui-bian's six-hour state visit to Nauru 
September 6.  Of the 80-member Taiwan delegation that made 
the trip, 30 were security guards.  The Nauru Police were 
required to turn their backs on Chen when giving a 21-gun 
salute in his honor.  During his visit, Chen gave a brief 
speech, opened a Trade Fair showcasing products from Taiwan 
and attended a state luncheon. Nauru officials were upbeat 
about the Taiwan Pacific Allies Summit (TPAS)  held in Palau 
September 4 (reftel).  At the summit, Taiwan agreed to 
various initiatives to improve access to technology, provide 
medical assistance, enhance judicial and law enforcement 
cooperation, and provide agriculture and economic assistance. 
 Apparently, little in the way of direct cash assistance was 
offered.  Chen reportedly told leaders that Taiwan would not 
engage in a "dollar diplomacy" competition with the PRC.  The 
Taiwan Representative in Fiji, on the other hand, told us 
that giving cash to politicians and candidates for office 
remains a common Taiwan practice in the region.   End summary. 
 
Chen's Visit to Nauru - Paranoia Reigns 
--------------------------------------- 
 
¶2.  (C)  According to the Australian Consul General in Nauru, 
fears of assassination dominated President Chen's actions 
during his state visit to Nauru September 6.  After initially 
balking, the Government of Nauru agreed that Chen's 30-person 
security detail (out of 80 total visitors) could carry loaded 
weapons.  The Nauru Police (Nauru has no military) gave Chen 
a 21-gun salute, but were required to turn their backs on 
Chen and fire in the opposite direction. 
 
¶3.  (C)  During the six-hour visit, Chen visited Parliament 
and delivered a short speech.  He opened a Trade Fair that 
showcased a variety of Taiwan products ranging from medical 
equipment to DVD players. The state luncheon held in Chen's 
honor reportedly cost A$11,000 (USD 8,200), an enormous sum 
for destitute Nauru, although we assume Taiwan paid the bill. 
 
Read-out of the Taiwan-Pacific Allies Summit 
-------------------------------------------- 
 
¶4.  (C)  The Consul General received a read-out on the Summit 
from Nauru President Ludwig Scotty, Foreign Minister David 
Adeang, and Health Minister Kieren Keke.  According to these 
officials, the countries attending the summit agreed to 
continue their support of Taiwan's bid to enter international 
and regional organizations.  The  Nauru officials gave a few 
more specifics on Taiwan initiatives in the region noted in 
the joint communiqu (the Palau Declaration) issued after the 
Summit (reftel): 
 
--Judicial cooperation:  Taiwan will work with its Pacific 
allies to develop a two-way mechanism to prevent money 
laundering and exchange intelligence.  Law enforcement 
training will start with Coast Guard training in Taiwan next 
year. 
 
--E-government:  Taiwan will donate computer hardware to 18 
schools, 12 NGOs and government institutions.  Computer 
software and training will be provided throughout the region. 
 (Like most of the initiatives, it is unclear how much 
training and equipment each country will receive). 
 
--Tourism:  Taiwan will work with its allies to improve 
regional transportation infrastructure where possible.  It 
will also promote visits to the region by Taiwan tourists. 
 
--Medical cooperation:  Taiwan will continue to send medical 
teams to the region, and will encourage sister-hospital 
arrangements.  A five-year medical assistance program, the 
Taiwan-Pacific Medical Alliance, will focus on AIDS, TB, 
diabetes, STDs and cardio-vascular diseases. 
 
--Energy and environment:  Joint efforts will focus on 
developing renewable energy sources.  Taiwan will donate 100 
solar home systems and 100 sets of traffic lights to 
countries in the region.  An Environment Ministers' Meeting 
 
SUVA 00000427  002 OF 002 
 
 
is planned for 2007. 
 
--Economic partnership:  Taiwan and the six countries will 
establish a business information exchange mechanism.  Taiwan 
will provide space at Taiwan trade promotion functions for 
its partner countries to display goods. It will assist those 
countries with purchasing and marketing trips to Taiwan. 
 
--Agriculture and fishing:  Several bilateral initiatives 
were noted.  Taiwan will reportedly assist Kiribati in 
developing "value added" aquaculture for such products as 
snails and scallops, and help Tuvalu expand export markets 
for tuna and barracuda.   The focus in Nauru will be 
production of mangoes and pineapples.  In Solomon Islands the 
focus will be on rice; in Palau and the Marshalls on 
improving fruit and vegetable production. 
 
--Austronesian culture:  An Austronesian Forum will be held 
in Taiwan this December.  An Austronesian culture 
"Secretariat" will be established in Taiwan and the annual 
Austronesian Cultural Festival in Taiwan will be expanded. 
 
Chen Says Taiwan Won't Engage in Dollar Diplomacy, 
But We Hear a Different Story 
--------------------------------------------- ----- 
 
¶5.  (C)  The Nauru officials noted that Taiwan did not put 
"extra money" on the table, although Taiwan officials did 
agree to try to help Nauru out on certain real estate loans 
from Taiwan banks (totaling USD 2-3 million).  At the Summit, 
President Chen reportedly made a point of saying that Taiwan 
is not in a position to challenge the PRC in the "dollar 
diplomacy" game, and would therefore not engage in that kind 
of competition. 
 
¶6.  (C)  In a recent conversation with us, Sherman Kuo, the 
Taiwan Trade Representative in Fiji, reiterated Chen's point 
about engaging in a "dollar diplomacy" struggle with the PRC. 
 On the other hand, Kuo readily admitted that Taiwan 
sometimes provides funds to officials and candidates for 
office in the region.  "That's the way it's done in Taiwan 
itself," he said, "and it happens in the Pacific too." 
Taiwan also continues to invest its money in splashy, 
high-profile projects in Fiji and other countries in the 
region.  A good example is the just completed "Taiwan Cup, 
10-10 Rugby Tournament" in Suva.  In addition to the expense 
of putting on and promoting the event, Taiwan offered 
FJ$30,000 (USD 18,000) in prize money, FJ$15,000 to the 
winning team.  In view of the extensive media coverage the 
event received, Kuo predicted that, next year, the PRC would 
host a rugby tournament in Fiji too. 
 
 
DINGER