VZCZCXYZ0007
RR RUEHWEB

DE RUEHIN #1199/01 1510821
ZNR UUUUU ZZH
R 310821Z MAY 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 5426
INFO RUEHBJ/AMEMBASSY BEIJING 6847
RUEHHK/AMCONSUL HONG KONG 8097

UNCLAS AIT TAIPEI 001199 
 
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: PENTAGON'S REPORT ON CHINESE MILITARY 
POWER, U.S.-TAIWAN RELATIONS, INTER-KOREAN RELATIONS 
 
¶1. Summary:  Taiwan's major Chinese-language dailies focused May 31 
news coverage on the year-end legislative elections and the 2008 
presidential elections; on a visiting U.S. West Point cadet who was 
allegedly involved in non-consensual sex; on the plunge of China's 
stock prices Wednesday following an attempt by its authorities to 
rein in the nation's booming stock markets with a higher trading 
tax; on former President Lee Teng-hui's plan to visit the Yasukuni 
shrine in Japan; and on an alleged corruption scandal regarding the 
Argo satellite project of the National Space Organization. 
 
¶2. In terms of editorials and commentaries, an editorial in the 
limited-circulation, pro-independence, English-language "Taipei 
Times" discussed the Pentagon's recent report on Chinese military 
power and pointed out the "underlying danger that Taiwanese are 
beginning to take for granted, or perhaps accept, news of China's 
suppression."  A separate "Taipei Times" op-ed suggested that the 
United States agree to Taiwan's request for a free trade agreement, 
saying "it would be a good move for both the US and Taiwan, and may 
help revive the TRA, which hasn't been adhered to."  An editorial in 
the limited-circulation, pro-independence, English-language "Taiwan 
News" discussed the recent railway link between South and North 
Korea and said such a development is "definitely a signal of major 
positive significance for relations between North and South Korea." 
End summary. 
 
¶3. Pentagon's Report on Chinese Military Power 
 
"Chinese Aggression Is a Big Deal" 
 
The pro-independence, English-language "Taipei Times" [circulation: 
30,000] editorialized (5/31): 
 
"... A recent Pentagon report, Military Power of the People's 
Republic of China 2007, said that China has more than 900 short 
range ballistic missiles deployed along its coast aimed at Taiwan, 
and that number is increasing by more than 100 a year. ...  Because 
of Taiwan's polarized political environment, warnings by government 
officials concerning China's military build-up appear to fall on 
deaf ears. ...  The government's rhetoric is indeed the same old 
tune, but the implied attitude points to an underlying danger that 
Taiwanese are beginning to take for granted, or perhaps accept, news 
of China's suppression -- such as its ability to keep Taiwan out of 
international organizations. ...  Taiwan can blame its allies all it 
wants for letting it down with the WHA vote and condemn the 
international community for its lack of justice and for kowtowing to 
China.  But when it comes down to it, what is Taiwan doing to get 
the help it needs to face down China?  Can Taiwan draw world 
attention when so many Taiwanese themselves seem not to view China's 
missiles and aggression as a big deal?" 
 
¶4. U.S.-Taiwan Relations 
 
"The Help of a Free-Trade Agreement" 
 
Nat Bellocchi, former chairman of the American Institute in Taiwan 
and now a special adviser to the Liberty Times Group, opined in the 
pro-independence, English-language "Taipei Times" [circulation: 
30,000] (5/31): 
 
"For the next 10 months, the US and China will be following 
Taiwanese politics closely. ...  At the same time, Taiwan and China 
will be watching how the US pursues its geopolitical interests in 
relation to both of them. ...  With its many interests worldwide, 
the US relationship with Taiwan may remain relatively unchanged, 
despite the developments in Taiwan and China.  The US continues to 
pressure Taiwan to strengthen its military security, but at the same 
time, ironically, it encourages Taiwan to invest more in the Chinese 
economy. ... 
 
"One of the problems in the US-Taiwan relationship has been a lack 
of dialogue.  Doing this inevitably upsets China, especially if 
senior officials are open involved.  As Taiwan has had problems 
keeping diplomatic information secret, the US-Taiwan relationship is 
a sensitive one that needs a different kind of dialogue.  China's 
efforts to coerce countries and international organizations to block 
Taiwanese participation in the international community have 
intensified, undermining Taiwanese relations.  The damage this 
coercion is doing to Taiwan is rarely talked about.  It is clear 
that US commitment to averting coercion as suggested by the TRA has 
wavered.  There is something the US could do to help Taiwan, 
however, which China might find difficult to suppress:  It is for 
the US to agree to Taiwan's request for a free-trade agreement.  It 
would be a good move for both the US and Taiwan, and may help revive 
the TRA, which hasn't been adhered to." 
 
¶5. Inter-Korean Relations 
 
"Lessons for Taiwan from Korea Links" 
POWER, U.S.-TAIWAN RELATIONS, INTER-KOREAN RELATIONS 
 
 
The pro-independence, English-language "Taiwan News" [circulation: 
20,000] editorialized (5/31): 
 
"... The successful 26-kilometer trips across the forbidding border 
dividing South and North Korea may be the precursor to a more 
substantive linkage of the railway systems in the peninsula through 
China and the Russia Federation with the Trans Siberian Railway at 
Khabarovsk.  Such a linkage would allow South Korea, which is 
effectively an 'island' on the lower half of the Korean peninsula, 
to gain direct land access to the Eurasian and European continent 
and add a new option to the existing sea and air transportation 
routes and also significantly enhance South Korea's international 
strategic position.  Therefore, even though the newly established 
link covered a total distance of 'only' 53 kilometers, the opening 
of this short route across the Demilitarized Zone is definitely a 
signal of major positive significance for relations between North 
and South Korea. ... 
 
"The DPP and its presidential nominee, former Premier Frank Hsieh, 
must understand the necessity of taking prompt corrective action and 
adopt a China policy which dumps the false mirage of 'separating 
politics from economics' and puts consolidation of our democracy and 
autonomy at the core of an economic and social development strategy 
in order to regain the initiative in the cross-strait struggle and 
upgrade our international competitiveness." 
 
YOUNG