VZCZCXYZ0010
RR RUEHWEB

DE RUEHIN #0033/01 0050807
ZNR UUUUU ZZH
R 050807Z JAN 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 3630
INFO RUEHBJ/AMEMBASSY BEIJING 6160
RUEHHK/AMCONSUL HONG KONG 7392

UNCLAS AIT TAIPEI 000033 
 
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: CROSS-STRAIT RELATIONS 
 
 
Summary:  Taiwan's major Chinese-language dailies focused their 
coverage January 05 on the scheduled operation of Taiwan's 
high-speed railway today.  Another major topic in most dailies is 
possible locations for President Chen Shui-bian's transit through 
the United States.  In terms of editorials and commentaries, an 
editorial in the pro-independence "Liberty Times" said that KMT 
Chairman Ma Ying-jeou should abandon his pro-China stance before 
carrying out any reconciliation between the pan-Blue and pan-Green 
alliances.  An editorial in the pro-independence, English-language 
"Taipei Times" said in a neutral tone that Taiwan's economy is bad, 
and the unificationists and independence supporters should carry on 
an honest debate in order to protect and expand the economic gains 
of the past 30 years.  End summary. 
 
A) "Blue and Green Should Discuss Reconciliation on the Foundation 
of Taiwan's Sovereignty" 
 
The pro-independence "Liberty Times" [circulation: 600,000] 
editorialized (01/05) that: 
 
"[KMT Chairman] Ma Ying-jeou's recent remarks regarding 
reconciliation between the pan-Blue and pan-Green alliances did not 
receive support from the KMT and other political parties. ... 
 
"... At first glance, Ma's remarks 'the KMT can even cooperate with 
the Communist Party of China (CPC); why can't the Blue and Green 
reconcile with each other' is reasonable.  Actually, the mistake in 
his remarks is apparent, i.e., it seems that Ma Ying-jeou still 
cannot discern Taiwan's antagonistic relationship with China.  In 
fact, it is the KMT-CPC cooperation that prevents the pan-Blue and 
pan-Green alliances from cooperating. ... 
 
"For example, with regard to the budget of Taiwan's defensive arms 
procurements, the KMT considers that peace in the Taiwan Strait 
depends on China's goodwill, not onTaiwan's defense capabilities 
per se.  Therefore, only through reconciliation with the Beijing 
authorities (actually, by making friendly gestures toward China) can 
peace be brought to the Taiwan Strait.  The KMT, hence, has 
continued blocking the passage of the U.S. arms procurement bill. 
The party even considers that strengthening military defense is 
equivalent to provoking China and consequently jeopardizes Taiwan's 
security.  If Ma Ying-jeou does not change this mentality, how can 
there be reconciliation between the Blue and Green? 
 
"In addition, Taiwan is a global island; its economic development 
depends heavily on the global economy.  Global trade is the path 
Taiwan should take; this is also the direction Taiwan has followed 
for decades.  However, the KMT has changed the attitude it held 
while it was the ruling party and asserts that the future of 
Taiwan's economy is in China, and businesses that do not go to China 
will perish.  The KMT has therefore pushed the government to relieve 
restrictions on investment in China. ... 
 
"... Only after Ma Ying-jeou gives up his proposals of 'unification 
with China as the [KMT's] ultimate goal' and 'KMT-CPC cooperation' 
can the Blue and Green discuss reconciliation on the basis of 
Taiwan's sovereignty." 
 
B) "The Myth of the Bad Economy" 
 
The pro-independence, English-language "Taipei Times" [circulation: 
30,000] editorialized (01/05) that: 
 
"... Both unificationists and independence supporters stand to gain 
from portraying Taiwan's economic situation as dismal. 
 
"From the unificationists' view, Taiwan is lagging behind China, and 
the only way to catch up is to seek ever closer ties. Meanwhile, the 
independence camp seeks to demonstrate that Taiwan's economy is 
already suffering because of its ties with China and hopes to limit 
interaction between the two. 
 
"But, as is usually the case with narrow ideas, both of these views 
fall far short of offering any kind of reasonable plan for Taiwan's 
economic future. 
 
"China is not a mountain of gold from which the nation's 
businesspeople can earn untold riches. The country has enough 
problems simply trying to lift its vast population out of abject 
poverty. Still, neither can Taiwan live in economic isolation. 
Although the popular press makes much of Taiwan's economic 
'dependence' on Beijing, the reality is that all major economies 
are, in some degree, dependent on China. And China is economically 
dependent on them. 
 
"Those who say 'China will solve all of our economic problems,' and 
those who say 'China is the root of all of our economic problems' 
are wasting our time. What Taiwan needs is an honest debate about 
economic engagement with China, while considering how best to 
 
protect and expand the economic gains of the past 30 years." 
 
WANG