VZCZCXYZ0022
RR RUEHWEB

DE RUEHIN #0417 0540844
ZNR UUUUU ZZH
R 230844Z FEB 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 4206
INFO RUEHBJ/AMEMBASSY BEIJING 6399
RUEHHK/AMCONSUL HONG KONG 7638

UNCLAS AIT TAIPEI 000417 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - LLOYD NEIGHBORS 
DEPARTMENT PASS AIT/WASHINGTON 
 
E.O. 12958: N/A 
TAGS: OPRC KMDR KPAO TW
SUBJECT: MEDIA REACTION: CROSS-STRAIT RELATIONS 
 
 
¶1. Summary:  Taiwan's major Chinese-language dailies focused 
coverage February 17-23 on the death of Hsu Tsai-li, the mayor of 
Keelung who was embroiled in a corruption scandal; and the efforts 
by cross-Strait officials in charge of arrangements for the 2008 
Olympic Games for routing the Olympic torch relay through Taiwan. 
 
¶2. In terms of editorials and commentaries, an editorial in the 
centrist, pro-status quo "China Times" urged the government to focus 
on practical matters in cross-Strait relations, such as allowing 
tourists from mainland China to visit Taiwan.  Another editorial in 
the "China Times" urged the Taiwan authorities to avoid too much 
reliance on the Chinese market.  End summary. 
 
¶3. "Allow Mainland Chinese To Sightsee in Taiwan" 
 
The centrist, pro-status quo "China Times" [circulation: 400,000] 
editorialized (02/21): 
 
"If nothing unexpected happens, the Chinese side might announce its 
decision to allow Chinese people to tour Taiwan; matters related to 
the exchange of yuan [renminbi] might also be solved together.  To 
be frank, we hope that cross-Strait relations in 2007 continue to 
involve these issues.  Sightseeing and tourism consist of eating, 
drinking, playing, and having fun.  These are the least issues that 
would have anything to do with politics, and these issues make 
everyone happy.  Just let these issues develop; don't handle them 
inappropriately to make everyone losers. ... 
 
"There has been no progress in cross-Strait relations for years. 
This year is an election year, and it is unlikely to see any 
breakthrough across the Taiwan Strait.  Since the passage of the 
'Anti-Secession Law,' Beijing has taken a more pragmatic policy 
toward Taiwan; Washington has also been watching the Taipei 
authorities so that Taiwan will not cross any red line.  The 
situation has made cross-Strait relations relatively stable, even 
though there is still a stalemate.  Therefore, why not do more 
things practically, and at least push for the opening of the Taiwan 
market to Chinese tourists?" 
 
¶4. "This Year, Please Save Some Energy on the Economy" 
 
The centrist, pro-status quo "China Times" [circulation: 400,000] 
said in its editorial (02/20): 
 
"... According to data gathered by China's Ministry of Commerce, 
cross-Strait direct trade in 2006 has for the first time surpassed 
US$100 billion, a nearly 20 percent increase compared to 2005. 
Hence, Taiwan has become China's seventh-largest trading partner, 
its fifth-largest import market, and the biggest source of its trade 
deficit.  In other words, China is Taiwan's largest trading partner, 
and the biggest source of its trade surplus.  Simply put, Taiwan's 
economic growth always depends on exports, and the biggest export 
market is the United States.  Nowadays, Taiwan's export market has 
shifted to mainland China.  Without the Chinese market, Taiwan's 
already declining economy might find it hard to survive. 
 
"The sale of Chinese merchandise to Taiwan hurts the island.  For 
example, Taiwan's towel manufacturers have suffered from the dumping 
of Chinese towels.  If China does not sell its merchandises to 
Taiwan, it also causes harm.  For example, China has tried its best 
on construction and has therefore banned the sale of gravel to 
Taiwan.  The ban has caused a panic among Taiwan businesspeople in 
the construction business; they have asked the Taiwan External Trade 
Development Council (TAITRA) to negotiate with its Chinese 
counterpart on the resumption of sales. 
 
"There are numerous examples similar to towels and gravel mentioned 
above.  Cross-Strait economic relations are connected very closely, 
while cross-Strait political relations are in a state of severe 
hostility.  If any [military] confrontation erupts [in the Taiwan 
Strait], Taiwan's economy will suffer from a recession if China cuts 
off cross-Strait trade, let alone takes military action.  However, 
the Taiwan authorities do not have a strategy to separate markets 
for imports and exports, and to avoid reliance on the Chinese 
market.  If this situation is not improved in the Year of the Pig 
[2007], it will surely be exacerbated in the Year of the Rat 
[2008]...." 
 
YOUNG