VZCZCXYZ0002
RR RUEHWEB

DE RUEHIN #1147/01 1420858
ZNR UUUUU ZZH
R 220858Z MAY 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 5344
INFO RUEHBJ/AMEMBASSY BEIJING 6811
RUEHHK/AMCONSUL HONG KONG 8066

UNCLAS AIT TAIPEI 001147 
 
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. ON CROSS-STRAIT TRADE, U.S.-CHINA 
STRATEGIC ECONOMIC DIALOGUE, INTER-KOREAN RELATIONS 
 
 
¶1. Summary:  Taiwan's major Chinese-language dailies continued to 
focus news coverage May 22 on the cabinet shuffle; on the dispute 
between the central government and the Taipei city government over 
the renaming of the Chiang Kai-shek Memorial Hall to "National 
Taiwan Democracy Memorial Hall;" and on other local issues.  All 
major Chinese-language and English-language dailies carried in 
inside pages remarks by AIT Taipei Director Stephen Young to 
Taiwan's Chinese National Association of Industry and Commerce 
(CNAIC) Monday, to the effect that expanded cross-Strait ties will 
enhance the U.S.-Taiwan partnership. 
 
¶2. In terms of editorials and commentaries, an editorial in the 
mass-circulation "Apple Daily" criticized President Chen's remarks 
during Monday's CNAIC speech, saying that one can hardly tell 
whether Chen is for or against the deepening of cross-Strait ties. 
An analysis in the pro-independence "Liberty Times," however lashed 
out at AIT Director Young.  The article said that, given the United 
States' leadership in the international community, it is China, not 
Taiwan, that Washington should impose pressure on, and the U.S. 
should demand that China remove all the barriers to cross-Strait 
trade talks.  An editorial in the limited-circulation, conservative, 
pro-unification, English-language "China Post" discussed the 
U.S.-China Strategic Economic Dialogue.  The article said tangible 
results are expected from the dialogue, despite the disputes between 
China and the U.S.  A separate "Apple Daily" column discussed 
inter-Korean relations and said it is likely that the situation in 
Northeast Asia will have a dramatic development.  End summary. 
 
¶3. U.S. on Cross-Strait Trade 
 
A) "Small Bird A-Bian" 
 
The mass-circulation "Apple Daily" [circulation: 520,000] 
editorialized (5/22): 
 
"President Chen said yesterday that, 'Reform is like a bird; too 
tight a grip kills the bird, but too loose a grip sets the bird 
free.'  At a loss for what he meant, aren't you?  Is Chen for or 
against the opening of cross-Strait relations, anyway?  All we know 
is that, under his rule, 'the bird of [our] youth is gone forever,' 
and that everyone's life has become 'mediocre' over the past seven 
years. ... 
 
"Stephen Young has made it very clear:  There is no way Taiwan can 
obtain 'most favored nation' trade treatment [sic; they mean a Free 
Trade Agreement] from the United States unless it liberalizes its 
relations with China.  A-Bian's reply was this mysterious 'bird 
theory' to dismiss it for the time being.  He even blamed other 
people by saying that the [local] businesses are afraid of being 
labeled, and government employees are afraid of drawing criticism 
for every move they make.  He made it sound as if he is the one that 
strongly upholds liberalization, while the others are resisting it. 
..." 
 
B) "Stupid!  The Problem Is on the Other Side [of the Taiwan 
Strait]" 
 
Journalist Tsou Jiing-wen noted in the pro-independence "Liberty 
Times" [circulation: 500,000] (5/22): 
 
"Stephen Young requested in the presence of President Chen again 
yesterday that the [Taiwan] government open its trade and economic 
[relations] with China.  Young's agenda was very clear; he was 
pleading for the interests of U.S. firms.  But it is a great pity 
that his statements were too sketchy, and he has obscured the focus 
of the issue and mixed up his target.  Given the United States' 
super powerful strength in the international community, it is China 
that Washington should impose its pressure on; it can never be 
Taiwan. 
 
"Taiwan's signing a Free Trade Agreement (FTA) with the United 
States and Taiwan's trade and economic policy toward China are two 
separate issues.  Young's mixing the two into one was a lousy way of 
lobbying.  One can even turn it around and say that only when 
Taiwan's signing of FTAs with countries such as the United States 
and Japan progresses smoothly can the island gain more confidence in 
its efforts to resist marginalization, which will then contribute to 
Taiwan's review of the China issue.  Since the United States [said 
it] does not want to sign the [free trade] agreement, there is no 
premise here; why is it that Washington expects Taiwan to take a 
blind move? 
 
"In addition, what kind of impact does the status quo across the 
Taiwan Strait have on the interests of U.S. firms?  And which 
businesses are affected?  Young needs to be held responsible to 
verify them and offer specific examples of such barriers.  He must 
not make unwarranted accusations, which are useless to offer correct 
remedies to solve the problems and are not conducive to the 
STRATEGIC ECONOMIC DIALOGUE, INTER-KOREAN RELATIONS 
 
relationship between [our] two countries. ... 
 
"Anyone who is familiar with the process of cross-Strait talks is 
aware of Taiwan's clear stance toward the issue over these past few 
years -- namely, [Taiwan] wants to discuss opening cross-Strait 
transportation on an equal footing [with China], and the talks will 
start with cargo transportation first, followed by passenger 
flights.  Taiwan has never said it does not want direct 
transportation.  But China has made it clear that it wants to use 
political issues to obstruct economic ones, and it insists on using 
[what China calls] domestic flights [i.e., flights between Mainland 
China and Taiwan, which Taiwan considers to be international 
flights] to deny Taiwan's plan of opening its international flights 
to various countries, a move that has thus stalled the schedule of 
[cross-Strait] opening.  Who is the troublemaker here?  How can 
Young not be aware of it?  Given the United States' leading role, it 
should, if it has the guts, go and demand that China remove all 
barriers.  What grounds does it have to turn around and ask Taiwan 
to sign a disgraceful agreement? 
 
"As a representative of the U.S. State Department, the United 
States' interests as a whole that Young has in mind should include 
the United States' strategic interests in Asia and should not be 
limited to the interests of certain U.S. firms.  Young needs to be 
prudent in his words and deeds so as to grasp precisely the 
principle of proportion. 
 
"The fact that a [foreign] envoy can speak out loudly and 
straightforwardly in front of a Taiwan president also indicates that 
our government's team in charge of negotiations with the United 
States has been in an inferior or even an ineffective position for a 
long time.  The results this team has achieved under the table have 
been dissatisfying, so it has failed to seek other support 
successfully to safeguard Taiwan's national interests.  The 
consequence was that China is able to join hands with other big 
countries to make whatever demands it wants from Taiwan.  Who should 
be held responsible to put to right [such a poorly managed team]? 
[The government] must not give an evasive reply [to this question] 
either." 
 
¶4. U.S.-China Strategic Dialogue 
 
"U.S. Reliant on China Trade" 
 
The conservative, pro-unification, English-language "China Post" 
[circulation: 30,000] editorialized (5/22): 
 
"The second U.S.-China 'Strategic Economic Dialogue' meetings are 
being held in Washington today and tomorrow. ...  In the December 
SED in Beijing, both sides walked away with a list of symbolic 
agreements, such as allowing the New York Stock Exchange and the 
Nasdaq Stock Market to open offices in China, and promising to work 
together on more commercial air travel between the two countries. 
Change will prove difficult, largely because U.S. companies have 
become so dependent on the Chinese economy that tighter rules on 
imports stand to harm the U.S. economy, too. ...  Despite the 
disputes, tangible results from the dialogue are expected to include 
an agreement on the relaxation on foreign ownership restrictions of 
Chinese security firms, new commercial flights between the two 
countries and American technology to promote energy efficiency and 
pollution control in China." 
 
¶5. Inter-Korean Relations 
 
"Crossing the 38 Degrees North Latitude" 
 
Columnist Antonio Chiang commented in the mass-circulation "Apple 
Daily" [circulation: 500,000] (5/22): 
 
"A few days ago, trains from North and South Korea respectively 
crossed the military borderline of 38 degrees north latitude [i.e., 
the 38th parallel].  This was an unprecedented development in the 
past 56 years.  Regardless of the various interpretations of this 
development -- whether it marked the beginning of unification 
between Seoul and Pyongyang, or it is simply a one-time political 
deal in which each side takes what it needs, once the trains started 
moving and had moved halfway already, it appeared likely that the 
situation in Northeast Asia will have a dramatic development. ... 
 
"Both North and South Korea are for unification, but Seoul sees it 
with nationalistic, romantic passion, while Pyongyang calmly 
calculates the risks and interests of every move.  Starting from 
[former President] Kim Dae-Jung to Roh Moo-Hyun, South Korea has 
proactively upheld the sunshine policy that calls for trade 
cooperation, peace, and prosperity.  Even though such a policy has 
received wide criticism from the opposition party because of 
Pyongyang's lack of active response, Seoul remains firm and stuck to 
this policy.  Pyongyang, on the other hand, used it as a bargaining 
STRATEGIC ECONOMIC DIALOGUE, INTER-KOREAN RELATIONS 
 
chip to demand more loans and relief from South Korea, just like 
what it did during the nuclear talks with the United States." 
 
YOUNG