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C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 002244 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 10/01/2032 
TAGS: PREL PGOV CH TW
SUBJECT: DPP PASSES SLIGHTLY LESS RADICAL "NORMAL COUNTRY" 
RESOLUTION; FRANK HSIEH MOVES TO TAKE CHARGE OF CAMPAIGN 
 
REF: A. TAIPEI 02178 
 
     ¶B. TAIPE 02191 
 
Classified By: AIT Director Stephen M. Young. Reason(s): 
1.4 (B/D) 
 
¶1.  (C) Summary.  A contentious DPP party congress on Sunday 
passed the less radical version of the "normal country" 
resolution that President Chen mediated last week, which 
pledges a non-specific "rectification" of the name Taiwan. 
Deep-Green supporters of former-DPP Chairman Yu Shyi-kun 
mounted a challenge, but managed to gain only 43 (of 328) 
votes for their more radical version mandating "change of 
national title to 'Taiwan'."  So contentious was the meeting 
that DPP presidential candidate Frank Hsieh cancelled his 
planned appearance at both the congress and the campaign 
rally scheduled to follow.  President Chen Shui-bian followed 
suit and cancelled his attendance, which Hsieh supporters 
claim reflects Chen's pledge last week to limit himself to 
running the government and let Hsieh run the presidential 
campaign.  The selection of party leaders to succeed former 
Chairman Yu could indicate whether President Chen intends to 
keep himself at center stage.  If he resumes the party 
Chairmanship, the issue would then become whether a Hsieh 
supporter becomes Secretary-General responsible for 
day-to-day party operations.  End Summary. 
 
Contention Vice Unity 
--------------------- 
 
¶2.  (C) What was supposed to have been a show of ruling 
Democratic Progressive Party (DPP) unity in the annual party 
congress on Sunday, September 30, turned into a debate, as 
supporters of former party Chairman Yu Shyi-kun challenged 
the compromise "normal country" resolution (NCR) mediated 
last week by President Chen Shui-bian.  For two hours, the 
congress was occupied by a heated debate over approval of the 
Chen compromise or the Yu proposal, with supporters of each 
competing to speak.  When put to a vote, however, the Yu 
version mandating "change of national title to 'Taiwan'" 
received support of only 43 of the 328 delegates present.  A 
subsequent, milder Yu version received just 30 votes. 
 
¶3.  (C) Shortly afterwards, the compromise version of the NCR 
calling for a more general "Taiwan name change" was adopted 
by consensus via a show of applause.  Following the vote, 
supporters of Yu Shyi-kun told the press that Yu would accept 
the approved NCR version and would support the Hsieh-Su 
ticket in the presidential campaign. 
 
Hsieh Makes a Strategic Retreat 
------------------------------- 
 
¶4.  (C) Before the final vote, Hsieh campaign director Yeh 
Chu-lan went on stage and told the congress that Frank Hsieh 
was deeply concerned and dismayed about the continuing NCR 
controversy.  Hsieh recognized the need to balance national 
security and people's interests and found the controversy 
devisive to the party.  Yeh stated that under the strain of 
the controversy Hsieh's "cold" had worsened and he would not 
attend the congress or the election rally following the 
congress.  President Chen followed suit and announced he also 
would not attend the rally.  Presiding over the congress as 
party Acting Chairman, Premier Chang Chun-hsiung announced 
that the evening's election rally would, as a consequence, be 
postponed until a later date. 
 
¶5.  (C) Legislator and Hsieh foreign policy advisor Bikhim 
Hsiao told AIT that Frank Hsieh's presidential campaign is 
now at a critical stage.  Hsieh "needs to gain control of his 
campaign" and not be guided or limited by others, such as Yu. 
 Noting that Hsieh unilaterally asserted last week that he 
will be responsible for the presidential campaign while 
President Chen will run the government, Hsiao explained that 
Hsieh is determined to "take charge" and counter popular 
perceptions that President Chen rather than he (Hsieh) is in 
charge of the campaign.  Pointing to Hsieh's recent 
 
TAIPEI 00002244  002 OF 002 
 
 
statements in support of cross-Strait interaction, she said 
Hsieh wants to demonstrate that if elected president he will 
not bend to deep-Green pressure as represented by the Yu 
challenge.  Hsieh's decision not to attend the DPP rally was, 
Hsiao maintained, a strong, clear  statement that he, and not 
party radicals, will run his campaign and devise his 
platform.  Similarly, Chen's decision to likewise not attend 
the rally, she argued, reflected Chen's public agreement last 
week with Hsieh's assertion that he (Hsieh) will run the 
campaign while Chen runs the government. 
 
DPP Leadership Issue 
-------------------- 
 
¶6.  (C) The next step for the DPP -- and Hsieh -- will be 
determining Yu's successor as party Chairman.  The most 
frequently mentioned possibility is President Chen himself, 
who would resume the Chairmanship from which he stepped down 
to take responsibility for the DPP's setback in December 2004 
legislative elections.  A number of DPP leaders have told AIT 
that President Chen is the logical and most widely acceptable 
choice to serve as Chairman.  At this point, the party 
desperately needs a strong leader, legislator Hsiao told AIT, 
but almost anyone other than Chen would arouse opposition 
from Yu and his supporters. 
 
¶7.  (C) Given the possibility that President Chen will resume 
the DPP Chairmanship, the next most important indicator will 
be who the party selects to serve as Secretary-General and 
run the party day-to-day.  DPP Deputy Secretary-General Hsu 
Jen-tu -- "Hsieh's man" at DPP headquarters -- told AIT that 
all DPP party officials have tendered their resignations 
pending action by the new party Chairman.  Bikhim Hsiao 
surmised that if President Chen becomes Chairman, he will 
"rid" DPP headquarters of Yu supporters because of his 
dissatisfaction with Yu.  The question then, she said, was 
whether the party would select someone with close ties to its 
presidential candidate, Frank Hsieh.  In previous 
conversations, Bikham Hsiao and Hsieh advisor Corey Chen have 
both suggested Hsieh would recommmend his confidante Lee 
Ying-yuan for the Secretary-General position. 
 
Comment 
------- 
 
¶8.  (C) Frank Hsieh's greatest challenge as DPP presidential 
candidate has been to gain control of his presidential 
campaign in the face of President Chen's activism and the 
deep-Green push to define and box in a future President 
Hsieh.  Hsieh's efforts to date have reflected that 
challenge.  His unilateral declaration last week that he 
would run the presidential campaign and President Chen would 
run the government was a step in that direction.  Last 
Summer, Hsieh opposed the NCR from moving forward in the DPP, 
only to reverse himself and embrace the NCR when it proved 
too popular in his party.  Later, Hsieh responded to the 
deep-Green challenge with Green one-upmanship -- declaring he 
is running for president of the "Taiwan nation" (Taiwan guo). 
 At the same time, Hsieh seeks to compete against KMT 
presidential candidate Ma Ying-jeou by declaring he will 
expand cross-Strait ties if elected president. 
YOUNG