VZCZCXYZ0001
RR RUEHWEB

DE RUEHIN #0804 1010911
ZNR UUUUU ZZH
R 110911Z APR 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 4837
INFO RUEHBJ/AMEMBASSY BEIJING 6627
RUEHHK/AMCONSUL HONG KONG 7873

UNCLAS AIT TAIPEI 000804 
 
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.-ROK FREE TRADE AGREEMENT, CHINA-JAPAN 
RELATIONS 
 
 
¶1. Summary:  Taiwan's major Chinese-language dailies continued to 
focus news coverage April 11 on the dispute between the Executive 
Yuan and the National Communications Council; on the 2008 
presidential elections; and on other local political issues.  In 
terms of editorials and commentaries, a column in the pro-status quo 
"China Times" discussed the U.S.-ROK Free Trade Agreement (FTA) and 
the potential China-ROK FTA.  The article said China is eager to 
sign an FTA with Seoul because it wants to interrupt the joint 
counterbalance formed by the United States and South Korea.  An 
op-ed piece in the limited-circulation, pro-independence, 
English-language "Taipei Times," on the other hand, commented on 
Chinese Premier Wen Jiabao's visit to Japan.  The article said 
"Asia's peace, stability and prosperity hinge on whether the two 
powers can manage to live together and lead the region into the 21st 
century."  End summary, 
 
¶2. U.S.-ROK Free Trade Agreement 
 
"Connection between the U.S.-ROK Free Trade Agreement and China-ROK 
Free Trade Agreement" 
 
The "International Outlook" column in the pro-status quo "China 
Times" [circulation: 400,000] noted (4/11): 
 
"The United States and South Korea signed a Free Trade Agreement 
(FTA) and, besides economic objectives, the political objectives 
[behind such a move] are very obvious as well.  China is also eager 
to push for signing an FTA with South Korea, with even more obvious 
political purposes.  If the United States intends to counterbalance 
China by strengthening the U.S.-ROK relations, Beijing's plan to 
fortify relations with Seoul will naturally be aimed at interrupting 
the joint counterbalance by the United States and South Korea. ..." 
 
¶3. China-Japan Relations 
 
"Hopes Rise for China, Japan Thaw" 
 
Jing-dong Yuan, director of the education program at the Center for 
Nonproliferation Studies and an associate professor of international 
policy studies at the Monterey Institute of International Studies in 
California, opined in the pro-independence, English-language "Taipei 
Times" [circulation: 30,000] (4/11): 
 
"Chinese Premier Wen Jiabao will pay a visit to Japan this week. 
Five years after the last Sino-Japanese summit, Wen's visit brings 
with it high hopes for a thaw in bilateral relations. ...  Wen's 
visit comes at a critical juncture in East Asian international 
relations -- never before have China and Japan both achieved 
prominence at the same time. ...  One of the most sensitive issues 
in the relationship -- as Beijing sees it -- is related to the 
growing ties between Taipei and Tokyo.  For the most part, the 
Japanese government did so by keeping ties between Tokyo and Taipei 
unofficial and low profile.  However, three trends have emerged to 
challenge the stability of the relationship. 
 
"First, Taiwan has evolved from a KMT-controlled authoritarian state 
to an emerging democracy.  As a result, there is growing affinity 
between Taiwan and Japan.  Second. China's 1995 and 1996 missile 
exercises in the Taiwan Strait raised the specter that Beijing could 
resort to the use of force to resolve the Taiwan issue.  Because of 
Taiwan's strategic location along sea routes used by Japan, Tokyo 
has become more attentive to the cross-strait development.  Third, 
economic transformation in eastern Asia and growing economic 
interdependence has promoted greater economic ties as Japanese 
companies seek to capitalize on Taiwanese business links to China. 
... 
 
"Beijing has plenty of reasons to be worried about the growing 
Tokyo-Taipei ties. ...  But what is encouraging is that at least 
Beijing and Tokyo can explore ways to best manage these disputes, 
even if they are unable to resolve them. ...  Asia's peace, 
stability and prosperity hinge on whether the two powers can manage 
to live together and lead the region into the 21st century.  Wen's 
visit should keep the momentum going." 
 
WANG