VZCZCXYZ0004
RR RUEHWEB

DE RUEHIN #1610/01 1990913
ZNR UUUUU ZZH
R 180913Z JUL 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 6034
INFO RUEHBJ/AMEMBASSY BEIJING 7037
RUEHHK/AMCONSUL HONG KONG 8283

UNCLAS AIT TAIPEI 001610 
 
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: TAIWAN'S REFERENDUM ON UN BID, NORTH KOREA, 
CHINA'S ECONOMY 
 
 
¶1. Summary:  Taiwan's major Chinese-language dailies focused July 18 
news coverage on the 2008 presidential election, on the aftermath of 
a nationwide amnesty implemented Monday, and on a business scandal 
involving senior financial officials.  The pro-unification "United 
Daily News" front-paged an exclusive news story with the headline 
"Imported U.S. Pork Contains [Animal] Medicine Banned [in Taiwan]." 
The centrist, KMT-leaning "China Times," ran an exclusive interview 
with Vice President Annette Lu on page four, which carried a banner 
headline that said "Annette Lu: Referendum on [Taiwan's] UN Bid Is 
to Use Taiwan's Sovereignty as Gambling Stake." 
 
¶2. In terms of editorials and commentaries, an editorial in the 
pro-independence "Liberty Times" commented on former AIT chairperson 
Therese Shaheen's recent remarks and the island's UN bid.  The 
article called on the Taiwan people to send out clear signals to the 
world about Taiwan's interest in participating in the international 
community as an independent sovereign state.  A "China Times" column 
discussed the Bush administration's policies toward North Korea and 
Iran.  The article said Washington will level immense pressure on 
Iran while making concessions wherever it can toward North Korea. 
An editorial in the pro-independence, English-language "Taipei 
Times" cautioned the world to pay attention to China's unfair trade 
practices.  End summary. 
 
¶3. Taiwan's Referendum on UN Bid 
 
"Taiwan's Mainstream Public Opinion Is Already Apparent; [the 
Island] Must No Longer Send out Ambiguous Signals" 
 
The pro-independence "Liberty Times" [circulation: 500,000] 
editorialized (7/18): 
 
"Former AIT Chairwoman Therese Shaheen recently pointed out that the 
United States is a democratic country, which will not overlook other 
countries' wish to 'cry out loud for freedom.'  She suggested that 
the Taiwan people vote in favor of a candidate that [seeks to] 
maintain Taiwan's interests instead of one that maintains the 
interests of the United States or China. ... 
 
"The U.S. State Department has expressed opposition to the 
referendum on 'Taiwan's bid to join the United Nations under the 
name Taiwan.'  But Shaheen said the United States would not have 
concerned itself with such a move had China not complained to 
Washington about it. ...  The United States and Taiwan are both 
democratic countries.  Would the United States suppress democratic 
Taiwan just to cater to totalitarian China if the democratic choice 
made by the Taiwan people triggers savage intimidation from China? 
 
"Taiwan's referendum on the island's UN bid carries uncommon 
significance both for the island and for the outside world.  For the 
island itself, the referendum is a move to use direct democracy to 
strike back at the surviving forces of an alien regime, in an 
attempt to prevent the forces from taking advantage of democracy, 
thus ruining it, and associating Taiwan with China.  Externally, it 
is a move to oppose annexation by China's hegemony and to state 
clearly to the international community that it wishes to stop the 
illusion of ultimate unification [between Taiwan and China].  Just 
as Shaheen has done, the Taiwan people must send out clear signals. 
Only by doing so will the international community adjust its 
unrealistic policy toward Taiwan, and transform their ambiguous 
[policy] of 'maintaining the status quo in the Taiwan Strait' into 
one clear [policy] of 'maintaining Taiwan's status as an independent 
sovereign state.'" 
 
¶4. North Korea 
 
"[Christopher] Hill's Prophecy Has Good Grounds" 
 
The "International Outlook" column in the centrist, KMT-leaning 
"China Times" [circulation: 400,000] stated (7/18): 
 
"... the U.S. representative [at the Six-Party Talks], Christopher 
Hill, is not a prophet, but what he prophesies usually comes true, 
because what he revealed was the Bush administration's current 
policy. ...  Bush's policy is very clear -- namely, [Washington] 
will level tremendous pressure and relentless saber-rattling on 
Iran, but for Pyongyang, it will make concessions wherever it can. 
During the remainder of Bush's term of office, he will make 
conciliatory arrangements in terms of the [nuclear program] on the 
Korean Peninsula, but in the Persian Gulf, he will not hesitate to 
use force against Iran.  Such a strategy is in reality an approach 
that only picks on the weak.  Pyongyang has the support of China, 
Russia and Seoul at its back.  The United States is unable to 
destroy it diplomatically, and it is afraid that Pyongyang will grow 
desperate and resort to nuclear weapons should the United States use 
force against it.  [Should this happen], the U.S. soldiers deployed 
in South Korea and Japan will all encounter disaster.  But Iran is a 
different issue.  It is almost entirely isolated.  Washington can 
CHINA'S ECONOMY 
 
befriend the European Union and ask it to jointly impose diplomatic 
pressure on Iran and in the meantime, the United States can use sea 
and air forces to attack Iran.  [Should this happen,] the war will 
not expand, but it will cause oil prices to rise for a short period 
of time." 
 
¶5. China's Economy 
 
"Time for China to Take the Long View" 
 
The pro-independence, English-language "Taipei Times" [circulation: 
30,000] editorialized (7/18): 
 
"China's economy will replace Germany as the world's third-largest 
by the end of this year.  But behind such sparkling figures, 
economic friction and displeasure are brewing.  As China becomes the 
world's factory and builds huge trade surpluses, there are growing 
complaints in the US, the EU and Asia about its unfair trade 
practices.  There are also growing concerns over the poor quality 
and health standards of Chinese goods and other products. ...  US 
President George W. Bush's administration has repeatedly criticized 
the Chinese government for keeping the yuan's exchange rate 
artificially low and for not doing enough to enforce intellectual 
property laws and punish factories that make fake products.  The US' 
complaints reflect the feelings of many countries that are fed up 
with the deluge of Chinese products and having Beijing turn a deaf 
ear to their complaints. ... 
 
"China's double-digit trade growth naturally provokes envy, but as 
its exports become increasingly integrated in the world economy and 
as Beijing's foreign reserves grow, domestic and international 
pressure will do so, too.  The Chinese government may help 
short-term development by ignoring or disrespecting the rules of 
international trade, but this strategy will only plant the seeds for 
international animosity.  That's bad for long-term economic 
development and China's international image.  Once a commercial 
reputation is damaged, restoring it is a long and difficult process. 
 Taiwanese businesses manufacturing goods in China should take 
precautions, lest they be tarred by the same brush." 
 
YOUNG