VZCZCXYZ0003
RR RUEHWEB

DE RUEHIN #0761/01 0940904
ZNR UUUUU ZZH
R 040904Z APR 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 4765
INFO RUEHBJ/AMEMBASSY BEIJING 6601
RUEHHK/AMCONSUL HONG KONG 7852

UNCLAS AIT TAIPEI 000761 
 
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: U.S.-CHINA-TAIWAN RELATIONS, U.S.-ROK FREE 
TRADE AGREEMENT 
 
 
¶1. Summary:  Taiwan's major Chinese-language dailies all gave 
significant coverage April 4 to the crash of a military helicopter 
in Kaohsiung County Tuesday afternoon, in which eight soldiers were 
killed.  News coverage also focused on the first trial hearing on 
former KMT Chairman Ma Ying-jeou's alleged misuse of his mayoral 
special allowance case Tuesday and other local political issues.  In 
terms of editorials and commentaries, an editorial in the 
pro-independence "Liberty Times" urged the Taiwan people to push the 
Legislative Yuan to pass the U.S. arms procurements budget as early 
as possible in the face of China's expanding military buildup.  An 
op-ed in the limited-circulation, pro-independence, English-language 
"Taipei Times" also called on the Legislative Yuan to take charge 
and take ownership of defense spending in order to protect Taiwan 
from the PRC threat.  A column in the mass-circulation "Apple 
Daily," on the other hand, discussed the U.S.-ROK Free Trade 
Agreement and said the move will strengthen the United States' 
political and economic strategic situation in Northeast Asia and 
thereby further restrain China's expansion.   End summary. 
 
¶2. U.S.-China-Taiwan Relations 
 
¶A. "China's Expanding Military Buildup Has Constituted Threat to the 
International Community" 
 
The pro-independence "Liberty Times" [circulation: 500,000] 
editorialized (4/4): 
 
"... China has not only taken a peaceful, harmonious offensive 
toward the international community but also a peaceful, united-front 
offensive to Taiwan, the island it intends to annex.  But most 
countries dare not lower their guard in the face of China's 'smile 
diplomacy,' so the Asian-Pacific countries have sought to strengthen 
their military buildup in order to cope with China's move toward 
military hegemony.  Most European Union nations also dare not easily 
lift their ban on the arms embargo on China.  Taiwan, on the 
contrary, is the only one that lacks adequate vigilance and measures 
in the face of China's military threat.  The arms procurement budget 
that will help Taiwan strengthen its defense is still stalled [in 
the Legislative Yuan] because of obstruction from the opposition 
parties.  Moreover, even though China's hostility toward Taiwan is 
so obvious, there are still people who call for proactively opening 
Taiwan's investments in China.  The move has not only diminished 
Taiwan's economic power but also endangered its sovereignty, and all 
the more, it has generated backlash that would contribute to China's 
military expansion. ...  As a result, the Taiwan people must urge 
the Legislative Yuan to pass the relevant arms procurement budget as 
early as possible.  Otherwise, they must demonstrate the people's 
power in the year-end legislative elections by voting against those 
legislators and political parties that blocked the arms procurement 
budget, and by voting for those that have the determination to 
defend Taiwan." 
 
B) "Defense: Time to Take Ownership" 
 
Randall Schriver, former U.S. deputy assistant secretary of state 
for East Asian and Pacific Affairs and a founding partner of 
Armitage International LC, opined in the pro-independence, 
English-language "Taipei Times" [circulation: 30,000] (4/4): 
 
"... Only the legislature [in Taiwan], or more specifically, the 
party in control of the legislature, is positioned to take the next 
meaningful step.  The legislature must pass a reasonable defense 
budget and provide resources to procure the major systems made 
available in 2001. ...  Can the legislature take charge and take 
ownership of defense spending to protect Taiwan?  I believe it can, 
and it is essential it does so in order to secure enough affirmative 
votes on a responsible defense budget for successful passage.  Here 
are five specific ways for the legislature to take charge and 
ownership of the defense budget as we move forward. 
 
"One, in parallel with passing a defense budget with substantial 
spending increases, the legislature should also add clarifying 
language as to legislative intent behind previously passed 
legislation known as the National Defense Act Article 22.  The Act 
calls for greater reliance on Taiwan's domestic industry for defense 
procurement. ...  If legislators had greater confidence that more 
defense spending would translate into more jobs and more profit for 
home-grown businesses (as is the case with US defense budgets), they 
would naturally be more inclined to spend taxpayer money on defense. 
 Two, the legislature should approve funding for research and 
development of the submarine program. ...  And the US industry need 
not fret - an indigenous program would still involve very 
significant opportunities for US contracts.  Three, when a 
particular weapons system or platform can be produced by more than 
one vendor, the legislature should insist that the Ministry of 
National Defense ask the US government to encourage competition 
among qualified vendors. ... 
TRADE AGREEMENT 
 
"Four, the legislature should declare victory on the referendum of 
2004 and move on.  Pan-blue leaders can note the three-year 
moratorium after the failed referendum has expired and declare that 
they are now prepared to deliver a responsible package for defense 
against PLA missiles. ...  And finally, in parallel with passage of 
a defense budget, the legislature should also look at measures to 
strengthen protection of sensitive technologies and related exports. 
 Such a move may ultimately help Taiwanese manufacturers become a 
preferred vendor to the US Department of Defense. ...  These steps 
are well within the authority of Taiwan's legislature.  They could 
not only lead to final passage of the defense budget under 
consideration, but also ultimately to a fundamental restructuring of 
the way that Taiwan approaches defense procurement.  Such a 
restructuring would in turn help build strong, sustained domestic 
support for appropriate defense spending to counter the PRC 
threat." 
 
¶3. U.S.-ROK Free Trade Agreement 
 
"[South] Korean Gladiator" 
 
Columnist Antonio Chiang noted in the mass-circulation "Apple Daily" 
[circulation: 520,000] (4/4): 
 
"The conclusion of the U.S.-ROK Free Trade Agreement (FTA) has 
combined the world's 12th largest economy with its largest economy 
to form an economic zone, of which the market size is smaller only 
than the European Union and North American Free Trade Area.  The 
development will not only generate a big impact on South Korea's 
economic society but will also greatly affect the economic and 
investment environments in China, Japan, Taiwan and the entire 
Asia-Pacific region.  Also, it will contribute greatly to South 
Korea's self-confidence and its international status.  On the other 
hand, this development also indicates that, with the decline of the 
U.S.-ROK military alliance, the two countries have sought to 
complement it with an economic alliance.  The United States will be 
able to strengthen its political and economic strategic position in 
Northeast Asia and thereby further restrain China's increasing power 
in the area. ...  For South Korea, which has always been worried 
about its status sandwiched between China and Japan, will 
consequently be able to find a window to boost its long-term 
national development by building itself into a 'hinge' in East Asia 
with the U.S.-ROK FTA." 
 
WANG