VZCZCXYZ0004
RR RUEHWEB

DE RUEHIN #3957/01 3280908
ZNR UUUUU ZZH
R 240908Z NOV 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 3173
INFO RUEHBJ/AMEMBASSY BEIJING 5985
RUEHHK/AMCONSUL HONG KONG 7205

UNCLAS AIT TAIPEI 003957 
 
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. AND CROSS-STRAIT THREE LINKS 
 
 
Summary:  Taiwan's major Chinese-language dailies continued to focus 
their coverage November 23-24 on local political issues, including 
the continuing investigation into Taipei Mayor Ma Ying-jeou's 
alleged misuse of the special mayoral allowance, the political 
impact caused by Ma's case, and the upcoming Taipei and Kaohsiung 
mayoral races.  An editorial and an opinion piece in the 
pro-independence "Liberty Times," Taiwan's largest-circulation 
daily, and an op-ed article in the pro-status quo "China Times," 
however, all focused on AIT Taipei Director Stephen Young's speech 
to the American Chamber of Commerce in Taipei on November 21, in 
which he encouraged Taiwan to negotiate with China to open the three 
links as early as possible.  The "Liberty Times" editorial claimed 
that the three links across the Taiwan Strait would ultimately lead 
to the demise of the U.S. arms procurement bill, and the opinion 
piece criticized Young for paying attention to U.S. business 
interests alone while having no regard for Taiwan's political and 
economic security.  The "China Times" op-ed article judged that 
Young's request for the three cross-Strait links will not become the 
U.S. policy in the next two to three years.  End summary. 
 
A) "Three Links and Direct Transportation will Ultimately Kill the 
Arms Procurement Budget" 
 
The pro-independence "Liberty Times" [circulation: 600,000] 
editorialized (11/24): 
 
"AIT Taipei Director Stephen Young delivered a speech entitled 
'Tending the Garden of U.S.-Taiwan Relations' at a meeting of the 
American Chamber of Commerce in Taipei on November 21.  Young 
pointed out that the U.S.-Taiwan partnership stands on three legs: 
Taiwan's security, Taiwan's democracy, and the robust U.S.-Taiwan 
bilateral economic and trade relationship. ...  'The U.S. will 
continue to work to insure that Taiwan will remain a prosperous, 
vibrant partner with the U.S.' - this is a statement indicating 
Director Young's intention.  But whether or not the so-called three 
links and direct transportation can ensure Taiwan's prosperity and 
vigor requires further discussion and consideration.  Taiwan's cash 
has been flowing into China over the past decade, and given the 
[Taiwan authorities'] pro-active opening [policy] over the past six 
years in particular, Taiwan's investments in China have accumulated 
to US$300 billion.  Evidently, it is not that Taiwan has not 
invested enough in China; instead, it is [Taiwan's] excessive 
investments [in China] that have put Taiwan's economy into a 
predicament. ... 
 
"... In Taiwan, the people who strongly advocate the three links are 
of the pan-Blue camp.  They push the three links not to develop 
Taiwan's economy but in the hope of reaching the objective of 
cross-Strait unification (with Taiwan being annexed by China) via 
economic integration across the Taiwan Strait.  China has also 
claimed that Taiwan's economic reliance on China is increasing, and 
Taiwan will give in politically in the event that China adopts 
economic sanctions [against the island].  In other words, the 
so-called three links and direct transportation will only give China 
more bargaining chips in dealing with Taiwan. 
 
"Under such circumstances, it will be like pushing Taiwan into a 
great fire if people still regard the three links as a cure-all. 
One can still recall that in a press conference held in late 
October, Young reminded the Legislative Yuan to pass the arms 
procurement budget this fall and to strengthen [Taiwan's] 
self-defense capability as early as possible.  If the three links 
come to pass and both sides of the Taiwan Strait have a closer trade 
and economic relationship, wouldn't those pan-Blue legislators who 
blocked the arms procurement budget talk more proudly of opposing 
the arms procurements?  Wouldn't the so-called three links become an 
ultimate killer of the arms procurement budget?  Should this happen, 
wouldn't [Young's] statement that 'Taiwan should not fear closer 
ties with its huge and rapidly growing neighbor, so long as it 
retains its ability to defend itself' become empty talk? 
 
"The discussion of the three links cannot be done simply from the 
perspective of the U.S. or Taiwan businesses but should focus on the 
interests of the 300 million American people and 23 million Taiwan 
people.  In addition to the trade and economic relationship, what's 
more important for the United States and Taiwan is their strategic 
relationship.  Besides, business interests are short-lived, whereas 
strategic interests are long-lasting.  One should not lose large 
gains simply because of a trivial consideration.  Young emphasized 
that 'even with the dramatic rise of China's economy, Taiwan remains 
extremely important to the United States,' so evidently it is not 
Young who has failed to note this.  We hope that Young can have a 
more profound understanding of the advantages and disadvantages of 
the three links from this perspective." 
 
B) "United States Attaches Greater Importance to Business Than to 
Taiwan?" 
 
Chen Li-chu, a think tank assistant, opined in the pro-independence 
 
"Liberty Times" [circulation: 600,000] (11/23): 
 
"AIT Taipei Director Stephen Young, in a recent speech delivered to 
the American Chamber of Commerce in Taipei, which was entitled 
'Tending the Garden of U.S.-Taiwan Relations,' called on Taiwan to 
negotiate with China to open the three links as early as possible. 
A closer look at Young's remarks showed that [Young] was talking 
about Taiwan-U.S. trade relations from the position of U.S. business 
interests only, with no regard for the impact of the three links on 
Taiwan's political and economic security.  It seems that 
mercantilism has come back to life again for the American people in 
a form that is different from what it was in the 16th or the 17th 
century. ... 
 
"Young's remarks showed very clearly that AIT views the three links 
issue across the Taiwan Strait simply from the position of enhancing 
the United States' best business interests.  [This view] has 
completely disregards the immediate and direct impact on Taiwan's 
defense security, economic security, and unemployment which might 
possibly be triggered by direct transportation across the Taiwan 
Strait. ...  The Taiwan people should condemn such a short-sighted 
behavior of American mercantilism." 
 
C) "U.S. Pressure to Push Three Links?" 
 
Kuan Hong-chang, a Ph. D. candidate of political science at the 
University of Texas at Austin, opined in the pro-status quo "China 
Times" [circulation: 400,000] (11/24): 
 
"AIT Taipei Director Stephen Young recently encouraged Taiwan to 
negotiate with China to open the three links as soon as possible, in 
order for Taiwan to maintain its important status in the global 
supply chain and to prevent itself from being isolated from the 
trend of regional integration.  In the past, requests for opening 
the three links often came from Taiwan businesses in mainland China, 
Taiwan's local businesses and the pan-Blue camp, or even foreign 
business groups in Taiwan.  Calls from foreign official 
representatives [for the three links] were rarely seen.  It thus 
remains to be seen whether the remarks by Young in the capacity of 
U.S. official representative stationed in Taiwan indicated that the 
United States, as a third party involved in cross-Strait issues, has 
extended its concerns from political issues of cross-Strait security 
to economic issues of cross-Strait trade and economic exchanges. 
This writer believes that Young's remarks this time did not indicate 
that the United States will turn its 'request for Taiwan to open the 
three links' into an official policy toward Taiwan in the next two 
to three years. ..." 
 
YOUNG