VZCZCXYZ0000
RR RUEHWEB

DE RUEHIN #1512/01 1840902
ZNR UUUUU ZZH
R 030902Z JUL 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 5882
INFO RUEHBJ/AMEMBASSY BEIJING 6992
RUEHHK/AMCONSUL HONG KONG 8241

UNCLAS AIT TAIPEI 001512 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - BROOKE SPELLMAN 
DEPARTMENT PASS AIT/WASHINGTON 
 
E.O. 12958: N/A 
TAGS: OPRC KMDR KPAO TW
SUBJECT: MEDIA REACTION: U.S.-TAIWAN RELATIONS 
 
Summary:  Taiwan's major Chinese-language dailies focused news 
coverage July 3 on the island-wide Joint College Entrance 
Examination held over the weekend, on the 2008 presidential 
election, and on the KMT's ill-gotten party assets.  Almost all 
papers also carried news stories on their inside pages regarding the 
American Institute in Taiwan celebrating the U.S. Independence Day 
in Taipei on Monday.  In terms of editorials and commentaries, an 
editorial in the pro-independence, English-language "Taiwan News" 
commented on U.S.-Taiwan relations, particularly in the wake of the 
State Department's open opposition to Taiwan's proposed referendum 
on the island's UN bid under the name "Taiwan."  The article 
concluded by saying "it would be better for leaders in both 
Washington and Taipei to enhance direct dialogue both to build 
understanding and avoid 'unpredictable' outcomes and to ensure 
democratic Taiwan receives proper respect and fair treatment from 
the U.S."  End summary. 
 
"Dialogue Key in U.S.-Taiwan Ties" 
 
The pro-independence, English-language "Taiwan News" [circulation: 
20,000] editorialized (7/3): 
 
"Taiwan's ties with the United States have entered a critical stage 
as upcoming presidential elections gear up, and both sides need to 
intensify efforts to bridge differences and work out mutually 
acceptable solutions through direct dialogue. ... 
It is evident that Bush feels trapped by the political morass he 
created through his ill-advised, hapless and fully 
counter-productive invasion of Iraq and the inept pressure campaign 
against nuclear-armed North Korea.  Based on his questionable 
assumption that Beijing is able and willing to help extract the U.S. 
from these political quicksands, the frazzled lame-duck Republican 
president now interprets any autonomous moves by Taiwan's DPP 
administration to deepen our democracy as 'rocking the boat' and 
'making trouble' for Washington. 
 
"It is evident that the Bush administration has used public, 
semi-public and private channels to warn the Chen administration and 
perhaps even KMT presidential candidate Ma Ying-jeou not to cross 
'the red line,' perhaps under the pain of a threat for Bush to 
publicly express that the U.S. 'opposes Taiwan independence' instead 
of its existing formulation of affirming that 'the U.S. does not 
support Taiwan independence.'  Such a threat would have weight only 
against the DPP, since the KMT 'opposes Taiwan independence' and 
could use the Republican administration's official statement to 
support its advocacy of eventual unification with China, which of 
course also intensely 'opposes' any form of 'Taiwan independence' 
and would be immensely pleased with such an open declaration by 
Bush. 
 
"The next most serious possible move by Bush would be an open 
condemnation of President Chen for allegedly violating the latter's 
'four noes' pledge and reiterating demands on Chen to 'display 
leadership' by 'rejecting' the bottom-up referendum drive and thus 
following Bush's own habitual trampling on domestic human and 
democratic rights.  Since Chen has already declared that he cannot 
take such action and the DPP has reaffirmed its intention to 
continue with the U.N. referendum campaign regardless of what either 
president says, a remaining scenario would be for Washington to 
downgrade transit treatment for Taiwan's national leaders. ... 
 
"Another observation point will be how Washington handles the 
transit request for President Chen himself, who is slated to visit 
Central America in late August.  Alternatively, the Bush 
administration could recall American Institute in Taiwan Taipei 
Director Steven Young [sic], cancel the diplomatic privileges of 
Taiwan government officials while traveling in the U.S., suspend the 
sales of defensive weapons to Taiwan (even though the KMT-controlled 
Legislature has finally given initial approval) and intensify 
cooperation with the PRC to further marginalize Taiwan. 
 
"Certainly, the DPP government needs to consider such possibilities 
and figure out effective solutions to deal with them, but we should 
also realize that there is a floor as well as a ceiling in the house 
of U.S. diplomacy.  Naturally, the Bush administration should also 
consider how attempting to suppress direct diplomacy in Taiwan while 
appeasing the PRC's authoritarian Chinese Communist Party regime and 
openly stacking the deck against the DPP and in favor of the KMT in 
the coming polls will play at home at a time when the continuation 
of the Republican administration is threatened by a resurgent 
Democratic Party which now has control over both branches of 
Congress. 
 
"Decisions by a right-wing Republican administration to show open 
disrespect for Taiwan's democratic achievements or even betray the 
values of American democracy by sacrificing one of Asia's genuine 
democratic miracles to appease the PRC could well backfire in the 
face of a Democratic Party-controlled Congress, many of whose senior 
leaders, including U.S. House Speaker Nancy Pelosi, are known to be 
 
friendly to 'democratic Taiwan.'  We believe it would be better for 
leaders in both Washington and Taipei to enhance direct dialogue 
both to build understanding and avoid 'unpredictable' outcomes and 
to ensure democratic Taiwan receives proper respect and fair 
treatment from the U.S." 
 
YOUNG