VZCZCXYZ0001
OO RUEHWEB

DE RUEHIN #1092 1350857
ZNR UUUUU ZZH
O 150857Z MAY 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5259
INFO RUEHC/DEPT OF AGRICULTURE WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

UNCLAS AIT TAIPEI 001092 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
STATE PASS AIT/W AND USTR 
STATE FOR EAP/TC, EAP/MLS, 
USTR FOR BOLLYKY, ALTBACH AND STRATFORD 
USDOC FOR 4431/ITA/MAC/AP/OPB/TAIWAN/MCHOI 
USDOC FOR USPTO GIN AND BROWNING AND SNYDOR 
 
E.O. 12958: N/A 
TAGS: ECON EFIN ETRD EINV KIPR TW
SUBJECT: TIFA - LOOKS LIKE WE HAVE A DATE, NOT SO SURE 
ABOUT TYCO 
 
 
Summary 
------- 
¶1.  (SBU)  Minister of Economic Affairs Steven Chen confirmed 
the dates of July 10-11 for the TIFA Council Talks and urged 
both sides to consult extensively over the next few weeks. 
On Tyco, he noted that the Ministry of Finance preferred that 
the case be resolved in the courts, but offered to suggest a 
contact at MinFin for Tyco to meet with in an upcoming visit. 
 End Summary. 
 
TIFA Time 
--------- 
¶2.  (SBU)  AIT Deputy Director Robert Wang met with Minister 
of Economic Affairs Steven Chen (Ruey-long) on May 15 to 
confirm dates for the next round of Trade Investment 
Framework Agreement (TIFA) talks.  Chen was accompanied by 
MOEA Deputy Minister Hsieh Fa-dah, Bureau of Foreign Trade 
(BOFT) Director General Franco Huang (Chih-peng), Office of 
the Trade Negotiator Principal Negotiator for NAMA Lee 
Su-hua, BOFT North American Affairs Director Robert Leng, and 
Chen's personal assistant Jason Chen.  The Deputy Director 
was accompanied by Econ Chief Daniel Moore and EconOff 
Michael Cavanaugh. 
 
¶3.  (SBU)  Minister Chen confirmed the dates of July 10-11 
for the next TIFA Council meeting to be held in Washington. 
He also agreed to the Deputy Director's suggestion to provide 
suggested agenda items in the next few days. Chen stated that 
Taiwan's head of delegation had not yet been decided, 
although it was probable that it would be John Deng, Chief 
Representative, Office of Trade Negotiator.  It is also 
possible that he would lead the delegation, he said. 
 
¶4.  (SBU)  The Minister stated that he did not anticipate any 
change in Taiwan's level of engagement in the TIFA process 
with the the resignation of Premier Su, though noted some 
ministerial positions could be changed.  Now that the TIFA 
dates have been confirmed, Chen suggested that experts from 
both sides consult extensively in the coming weeks to make 
sure that the talks are a success.  He welcomed the 
opportunity to hold DVCs on the various proposed agreements 
and other issues.  The Deputy Director agreed and noted that 
AIT would also be working with AmCham it prepares to issue 
its annual "White Paper" later this month and for their 
Washington "door-knock" scheduled for June 11-15.  AIT will 
urge AmCham to express its support for the TIFA agenda during 
its annual door-knock campaign. 
 
TYCO Time? 
---------- 
¶4.  (SBU) Econ Chief raised the Tyco thermistor tariff issue, 
asking for Minister Chen's view on whom Tyco Controller 
Jeffrey Harrison should meet during Harrison's planned visit 
to Taipei May 21-24.  (Note:  Following the meeting TYCO's 
Taiwan office informed AIT that Harrison is delaying his trip 
to sometime in June.)  Chen directed his staff to prepare a 
status report of the case and consult with the Ministry of 
Finance on its views.  He said the appropriate person to meet 
would probably be the Director General of Customs, but asked 
for a little time to first contact MinFin.  BOFT DG Franco 
Huang suggested that MinFin believes the best way to deal 
with the issue is to have the court system adjudicate all of 
the remaining cases.  AIT noted that this position is very 
rigid, emphasizing that Tyco is willing to discuss and make a 
settlement so it can eliminate an undetermined liability from 
its financial reports.  Chen acknowledged that MinFin's 
position has remained unchanged over time and said that the 
lower levels of MinFin are extremely stubborn on this issue. 
He said Taiwan's bureaucratic system mandates that decisions 
must come up through the hierarchy, meaning that it is not 
possible for a Minister to simply direct an outcome.  He 
added that Taiwan officials are extremely prudent in 
considering legal issues and the possible ramifications. 
YOUNG