VZCZCXYZ0000
RR RUEHWEB

DE RUEHIN #4193 3610849
ZNR UUUUU ZZH
R 270849Z DEC 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 3548
INFO RUEHBJ/AMEMBASSY BEIJING 6130
RUEHHK/AMCONSUL HONG KONG 7360

UNCLAS AIT TAIPEI 004193 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - DAVID FIRESTEIN 
DEPARTMENT PASS AIT/WASHINGTON 
 
E.O. 12958: N/A 
TAGS: OPRC KMDR KPAO TW
SUBJECT: MEDIA REACTION: IRAN, TAIWAN'S ECONOMY 
 
 
¶1. Summary:  Taiwan's major Chinese-language dailies focused their 
coverage December 27 on the strong earthquake and aftershocks that 
rocked southern Taiwan Tuesday evening, and on Taiwan's high-speed 
rail system, which will formally start its trial run next week. 
Most papers also reported on inside pages that the Legislative 
Yuan's Procedural Committee agreed Tuesday to put the NT$6.3 billion 
supplementary arms budget on the agenda for Friday's plenary 
session. 
 
¶2. In terms of editorials and commentaries, a column in the 
pro-status quo "China Times" said Washington is still in need of a 
clear Iran policy.  An editorial in the pro-independence "Liberty 
Times," Taiwan's largest-circulation daily, on the other hand, 
discussed Taiwan's economy, saying that in order for the island to 
achieve better economic development for the coming year, the Taiwan 
government needs to get rid of its previous admiistrative style 
which centers on "cross-Strait relations."  End summary. 
 
¶3. Iran 
 
"The Bush Administration Still Lacks a Clear Iran Policy" 
 
The "International Outlook" column in the pro-status quo "China 
Times" [circulation: 400,000] noted (12/27): 
 
"... There seems to be no conclusive opinion yet with regard to what 
exactly Washington's Iran policy will be.  If [Washington is to act] 
in accordance with James Baker's Iraq Study Group Report, the United 
States should engage with Iran, as it would be conducive [for 
Washington] to resolve the Iraq issue if it were able to coordinate 
with Iran.  But President George W. Bush does not seem to be very 
interested in such an idea.  Sources said neither Vice President 
Dick Cheney nor Secretary of State Condoleezza Rice supported the 
idea of engaging with Iran, so it is quite likely that Bush will not 
accept Baker's proposal. ... 
 
"The U.S. government has every reason to loathe Iran, but it is in 
need of a clear and firm policy toward the country.  The lack of a 
clear Iran policy has caused Washington to become stuck in a dilemma 
- it has neither adequate strength to shake and bring down Iran nor 
enough softness or capacity to tolerate it; Washington has been this 
way starting from the UN sanctions to the decision of whether or not 
it wants Iran and Iraq to cooperate with each other." 
 
¶4. Taiwan's Economy 
 
"Looking at Taiwan's Economy in 2007 at the Year's End" 
 
The pro-independence "Liberty Times" [circulation: 600,000] 
editorialized (12/27) 
 
"... But we believe human efforts can achieve everything.  If the 
[Taiwan] government can get rid of the kind of administration that 
centers on 'cross-Strait relations,' the objective of reaching an 
economic growth of 4.14 percent [in 2007] shouldn't be too 
difficult. ...  As a result, on top of the moves to improve the 
island's domestic investment environment and to provide more 
incentives, the top priority for now is thoroughly to carry out 
'proactive management,' [the new policy direction] announced by the 
President in his New Year's Day address for 2006.  Over the past 
seven years, the government has paid excessive attention to the 
ideas proposed by the pro-unification faction, which have thus 
tilted the government policy toward opening [rather than 
management].  As a result, the ratio of Taiwan's overseas production 
has soared to nearly 45 percent this year, with the ratio [of 
overseas production] for information technology hardware products 
reaching as high as 93 percent.  Such a development has consequently 
slashed the prices for Taiwan's exports, making the conditions for 
our country's external trade more unfavorable and rapidly 
suppressing new investment projects on the island.  This is the 
major reason why our country's domestic consumption has cooled so 
much [this year]. ..." 
 
WANG