VZCZCXYZ0009
RR RUEHWEB

DE RUEHIN #3979 3320923
ZNR UUUUU ZZH

R 280923Z NOV 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 3211
INFO RUEHBJ/AMEMBASSY BEIJING 6000
RUEHHK/AMCONSUL HONG KONG 7224

UNCLAS AIT TAIPEI 003979 
 
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.-CHINA-TAIWAN 
 
 
Summary:  Taiwan's major dailies November 28 focused on a meeting of 
six high-ranking prosecutors, in which they reached an agreement 
that prosecutors will apply regulations loosely in investigations of 
special allowance cases.  The other major focus is the rise of the 
TAIEX stock index, which closed at 7,498 points on Monday, up 0.95 
percent and at its highest level in more than six years, after a 
private equity consortium led by the Carlyle Group said it was 
planning to make a US$5.5 billion bid for Advanced Semiconductor 
Engineering. 
 
In terms of editorials and commentaries, the English-language, 
pro-independence "Taiwan News" editorialized that since Central 
American governments cannot ignore Washington's attitude toward 
China's expanding presence in Latin America as well as the 
importance of the U.S.-promoted Central American Free Trade 
Agreement (CAFTA), there is room for Taiwan to lobby the U.S. to 
improve economic attractiveness of such schemes as CAFTA and thus 
undermine efforts by China to position itself as an alternate 
economic pole in the region.  End summary. 
 
A) "Respond Positively to Ortega's Victory" 
 
The pro-independence, English-language, "Taiwan News" [circulation: 
20,000] editorialized (11/28): 
 
"Speculation in the media has been rife that Nicaragua's left-wing 
president-elect Daniel Ortega, who was elected with a 38.7 percent 
plurality, would shift Managua's ties from Taiwan and establish 
diplomatic relations with the People's Republic of China. 
 
"Such speculation was grounded in both the long-term 'revolutionary' 
relations between Ortega's Sandinista National Liberation Front and 
Beijing's ruling Chinese Communist Party as well as the rise of 
China's economic and political influence in Latin America and 
globally. 
 
"Ties between Taiwan and most of its Central American allies have 
their roots in Cold War 'anti-communist' alliances sponsored by the 
United States when Washington enlisted the authoritarian and (at 
that time) rabidly anti-Communist Kuomintang regime as an ally 
against numerous movements for social justice and national 
liberation in the region. ... 
 
"... In the wake of the end of the Cold War, Taiwan shifted to focus 
on "money diplomacy" through direct assistance and support for 
Taiwanese investors in the region. ... 
 
"... However, the intensifying economic and political clout of the 
PRC is clearly capturing attention among media, politicians and 
business executives in Nicaragua and other Central American nations. 
 
 
"... In terms of 'money diplomacy' or official assistance or 
resources investment, Beijing now can outbid Taipei, whose 
Democratic Progressive Party government under President Chen 
Shui-bian has at least officially foresworn 'checkbook diplomacy' 
and is in practice hamstrung by the Legislature. 
 
"... [T]he rapid rise of bilateral trade between the PRC and Central 
American nations is fostering greater economic interdependence. When 
combined with the PRC's domination of political links with South 
American countries, Taiwan's diplomatic situation in Central America 
is now becoming quite worrisome. 
 
"Despite justified resentment over U.S. hegemonism, Central American 
governments, no matter what their political complexion, cannot 
ignore Washington's attitude toward the PRC's expanding presence in 
this region as well as the importance of the U.S.-promoted Central 
American Free Trade Agreement (CAFTA). 
 
"Moreover, Taiwan's long-term contributions to this region have also 
earned considerable public support, and Taipei's financial and 
technological assistance has been crucial to Nicaragua's economic 
development. ... 
 
"... While it is unrealistic and improper for Taipei to expect 
Washington to protect our diplomatic links in Central America, there 
is room for Taiwan to lobby the U.S. to improve the economic 
attractiveness of such schemes as CAFTA and to modify the agreement 
in ways that can ease widespread opposition to the pact and thus 
undermine efforts by China to position itself as an alternate 
economic pole. 
 
"Moreover, Taiwan needs to articulate its own autonomous economic 
and political strategy for relations with Central America." 
 
YOUNG