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DE RUEHIN #0002/01 0020944
ZNY CCCCC ZZH
O 020944Z JAN 08
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TO RUEHC/SECSTATE WASHDC IMMEDIATE 7706
INFO RUEHBJ/AMEMBASSY BEIJING 7606
RUEHUL/AMEMBASSY SEOUL 9137
RUEHKO/AMEMBASSY TOKYO 9372
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RUEHGZ/AMCONSUL GUANGZHOU 0757
RUEHHK/AMCONSUL HONG KONG 8877
RUEHGH/AMCONSUL SHANGHAI 1574
RUEHSH/AMCONSUL SHENYANG 6265
RHHJJAA/JICPAC HONOLULU HI
RUEAIIA/CIA WASHDC
RUEKJCS/SECDEF WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RHHMUNA/USPACOM HONOLULU HI

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 000002 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 01/02/2018 
TAGS: PGOV TW
SUBJECT: PRESIDENT CHEN DEFENDS EXISTING POLICIES IN NEW 
YEAR'S ADDRESS 
 
REF: 07 TAIPEI 0012 
 
Classified By: AIT Director Stephen M. Young, 
Reasons: 1.4 (b/d) 
 
¶1.  (C) Summary: In his annual New Year's address on January 
1, President Chen did not announce any controversial new 
initiatives, but defended his existing policies on 
cross-Strait relations, Taiwan's sovereignty, the UN 
referendum and other issues.  Chen promised to keep his 
international commitments, listed the major accomplishments 
of his presidency, and stressed that he would protect the 
democratic election process as prescribed in the 
Constitution.  His relatively positive comments on PRC 
President Hu Jintao's recent offer to negotiate a peace 
agreement with Taiwan may have been intended to deflect 
international pressure over the DPP's controversial UN 
referendum.  End Summary. 
 
Cross-Strait Relations 
---------------------- 
 
¶2.  (SBU) In the opening section of his 2008 New Year's 
address, President Chen Shui-bian said, in reference to PRC 
President Hu Jintao's recent remarks on a possible 
cross-Strait peace agreement: "We wholeheartedly welcome and 
look favorably on any proposal that might be conducive to 
maintaining peace and stability across the Taiwan Strait." 
After a review of his own past proposals for promoting 
cross-Strait peace and stability, Chen argued, however, that 
the "one China principle poses the biggest obstacle to 
improving Taiwan-China relations, and he stressed that 
"normalization of relations between Taiwan and China cannot 
be advanced if preconditions are already imposed." 
 
¶3.  (SBU) Chen detailed China's relentless efforts to 
"suppress" and "intimidate" Taiwan.  According to Chen, China 
has now deployed 1,328 ballistic missiles opposite Taiwan. 
Also, "Beijing is poised to designate an 'air defense 
identification zone' in the Taiwan Strait and open a new 
civil air route along the median of the Taiwan Strait.  In 
doing so, China is once again challenging and attempting to 
unilaterally change the status quo in the Taiwan Strait."  To 
face such challenges, Chen maintained, Taiwan needs to unite 
and "form a new national collective consciousness.  Only then 
can lasting peace and stability be realized in the Taiwan 
Strait." 
 
UN Referendum 
------------- 
 
¶4.  (SBU) According to Chen, Taiwan's "approach of applying 
for new membership in the WHO and the UN under the name 
'Taiwan'  has absolutely nothing to do with changing our 
national moniker."  "The efforts of Taiwan's 23 million 
people to protect their basic human rights cannot be 
characterized as 'provocative' or misconstrued as attempts to 
change the status quo in the Taiwan Strait merely because of 
China's objections."  "Taiwan is a sovereign country," Chen 
stressed, and "its 23 million people have the right to voice 
their aspiration for UN participation through referendum." 
Stating that he could not call off the UN referendum, Chen 
said, "We find it extremely regrettable that, under 
tremendous pressure from China, the U.S. and EU have 
expressed varying degrees of opposition to Taiwan's 
referendum on joining the UN." 
 
¶5.  (SBU) Chen reassured the domestic and international 
audience that upcoming democratic elections would proceed 
smoothly and that he would keep his international 
commitments.  "We will, in true democratic spirit, hold 
regular elections as prescribed in the Constitution, and we 
will abide by our promises to the international community. 
In so doing, we will ensure that constitutional order and 
mandated processes are respected." 
 
Holding the Line on Cross-Strait Economic Policy 
--------------------------------------------- --- 
 
 
TAIPEI 00000002  002 OF 002 
 
 
¶6.  (SBU) Arguing that "Taiwan has invested too much rather 
than too little in China," Chen promised to continue his 
policy of "proactive management and effective management" of 
cross-Strait economic links.   Chen also claimed that 
"unrestricted, unsupervised investment in China over the 
years has been the main factor in the appearance of an 
M-shaped society in Taiwan."  He listed his administration's 
policies to help central and southern regions, middle- and 
low-income groups, and small and medium enterprises. 
 
¶7.  (SBU) In conclusion, Chen summarized the accomplishments 
of his presidency, which included holding Taiwan's first 
national referendum, "mothballing" the National Unification 
Council and Guidelines, and renaming the Chiang Kai-shek 
Memorial Hall as the Taiwan Democracy Memorial Hall.  He 
cited the completion of several major projects, including the 
High-Speed Railway, the Central Taiwan Science Park, and the 
longest highway tunnel in Asia.  "More importantly," Chen 
argued, "in strengthening Taiwan-centric consciousness, we 
have ensured peace and stability in the Taiwan Strait and 
created a greater space and more solid foundation for the 
nation's survival and growth."  Noting the approaching end of 
his administration, Chen predicted that "the torch of 
democracy and progress will be passed on smoothly" to his 
successor. 
 
Comment 
------- 
 
¶8.  (C) Chen did not break new ground or announce new 
initiatives in his New Year's address.  Rather, he defended 
existing policies, including those on cross-Strait relations 
and the UN referendum, and summed up what he regarded as the 
major accomplishments of his presidency.  Chen's positive 
reference to Hu Jintao's recent remarks on Taiwan policy was 
probably intended to ease international pressure and counter 
the perception that he seeks confrontation with Beijing for 
domestic political gain.  Chen also tried to allay domestic 
and international concerns by stressing that he would protect 
Taiwan's democratic election process and keep his 
international commitments. 
YOUNG