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OO RUEHCN RUEHGH
DE RUEHIN #0037/01 0091018
ZNR UUUUU ZZH
O 091018Z JAN 08
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7762
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RUEAIIA/CIA WASHDC PRIORITY
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UNCLAS SECTION 01 OF 02 TAIPEI 000037 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV TW
SUBJECT: PRESIDENT CHEN RAISES FTA, F-16S, AND REFERENDA 
WITH CODEL ORTIZ/CHABOT 
 
 
¶1.  (SBU) Summary.  President Chen Shui-bian urged visiting 
Congressmen Steve Chabot and Solomon Ortiz to support a Free 
Trade Agreement (FTA) with Taiwan and, pointing to the 
missile build-up across the Taiwan Strait, the sale of F-16 
C/D fighters.  He insisted to the congressmen that the UN 
referendum would not change the cross-Strait status quo or 
break his four-no's pledge.  End Summary. 
 
"Welcome Home" 
-------------- 
 
¶2.  (SBU) Taking a break from his legislative election 
campaigning, President Chen Shui-bian met January 9 with 
Congressmen Steve Chabot (R-Ohio) and Solomon Ortiz 
(D-Texas).  Dr. C. T. Lee, a neurosurgeon from Cincinnati and 
former Chairman of the Formosan Association for Public 
Affairs (FAPA), accompanied the congressmen to the meeting 
with President Chen.  AIT Director Stephen Young also 
attended.  Chen apologized for the early hour -- 8:00 a.m. -- 
explaining that he is spending all his time these days 
campaigning for Democratic Progressive Party (DPP) candidates 
in Saturday's Legislative Yuan (LY) election.  The early 
hour, he said, is an indication of how much Taiwan values the 
congressmen's friendship. 
 
¶3.  (SBU) President Chen welcomed the two congressmen as "old 
friends" and "brothers" of Taiwan.  Noting that Ortiz had 
visited Taiwan at least forty times, Chen said "welcome 
home."  He warmly recalled House Taiwan Caucus Co-Chairman 
Chabot's last visit to Taiwan in February 2007 and his public 
calls for the U.S. to review its one-China policy, which 
Chabot "rightly said is out of date." 
 
¶4.  (SBU) Chen expressed appreciation for the congressmen's 
support for legislation and resolutions in support of Taiwan, 
particularly a Free Trade Agreement (FTA) and Taiwan 
participation in WHO.  He also expressed gratitude for their 
understanding of his action on the National Unification 
Council and Guidelines in February 2006 and for their support 
of Taiwan's efforts to join the UN.  Chen praised the two 
congressmen for facilitating cooperation between the U.S. and 
Taiwan, noting that their efforts have given strength and 
courage to the Taiwan people. 
 
Three Requests:  FTA, F-16's, and Referenda 
------------------------------------------- 
 
¶5.  (SBU) President Chen told the congressmen that the number 
of PRC missiles aimed at Taiwan increased from 988 last year 
to 1328, a figure based on consultation with the U.S., he 
said.  This "astonishing increase" of 440 missiles in one 
year represents a direct threat to Taiwan security and to the 
stability of the Taiwan Strait.  Chen said his administration 
had worked hard to pass the long-stalled three major military 
procurement projects (note: P-3C surveillance aircraft, PAC-3 
missiles, and diesel electric submarines).  These weapon 
systems have now been funded by the 2007 and 2008 defense 
budgets, with an additional amount to purchase F-16 C/D 
fighter jets.  Chen expressed his deep appreciation for 
congressional support of Taiwan's F-16 purchase request and 
his hope that the U.S. Government will agree to this request 
under its Taiwan Relations Act (TRA) commitment and, thus, 
help Taiwan fill the defense void caused by its aging jet 
fighters. 
 
¶6.  (SBU) Chen then requested the two congressmen's support 
for a U.S.-Taiwan FTA.  As one of the most important U.S. 
trade partners, he argued, Taiwan deserves serious 
consideration for an FTA, which would be mutually beneficial 
to both sides. 
 
¶7.  (SBU) Finally, President Chen expressed appreciation for 
U.S. support of Taiwan's democratization, one expression of 
which, he said, is the national referendum.  Noting that the 
first two referenda were held in conjunction with the March 
2004 presidential election, Chen explained that four 
 
TAIPEI 00000037  002 OF 002 
 
 
referenda would be held in conjunction with the January 12 LY 
and March 22 presidential elections.  Unfortunately, there 
are two political parties in the world that oppose the 
referenda -- one in Taiwan, the opposition Nationalist Party 
(KMT), and one in China, the Chinese Communist Party (CCP). 
It is to be expected that the CCP would oppose any 
referendum, he said, but KMT opposition is a cause for 
regret, because referenda are a democratic expression of the 
will of the 23 million people on Taiwan.  The UN referenda, 
he assured the congressmen, will not change the cross-Strait 
status quo or break his four-no's pledge, but will only 
advance Taiwan democracy. 
 
Congressmen on Taiwan:  F-16, FTA, IPR 
-------------------------------------- 
 
¶8.  (SBU) Congressman Ortiz stressed the enormous progress 
Taiwan has experienced since his first visit in 1983. 
Taiwan, then under martial law, has since blossomed into full 
democracy, with Taiwan, just like the U.S., facing 
presidential elections.  Noting that theirs was a bipartisan 
CODEL, Ortiz praised the work of Congressman Chabot, one of 
the House Taiwan Caucus Co-Chairs, in maintaining U.S.-Taiwan 
friendship.  Co-Chair Sherrod Brown, he explained, had been 
unable to join the CODEL this time because of the approaching 
Nevada primary.  Both congressmen stressed that Taiwan has 
many friends in the U.S.  The fact that the Taiwan Caucus is 
one of the largest and most active caucuses, Ortiz continued, 
is indicative of U.S. friendship for Taiwan.  Foreign policy, 
however, he added, "we leave to the Administration." 
 
¶9.  (SBU) Congressman Ortiz commended passage of the military 
procurement package and told Chen that he and Chabot will 
take Chen's message on F-16's to Congress and discuss with 
their colleagues.  F-16s are important for Taiwan's defense, 
Ortiz said, and he pledged to work with Chabot on this issue. 
 They will also take back the FTA issue for discussion, but 
noted FTA's are a very controversial issue in Congress.  Both 
congressmen stated their support for an FTA, with Ortiz 
stating that Taiwan should get an FTA "at some time."  Chabot 
commended Taiwan for its efforts to deal with IPR and piracy, 
which, while not perfect, are a big improvement showing that 
Taiwan is headed in the right direction.  Finally, Ortiz 
agreed with Chen that referenda are an important tool of 
democracy and that people should be able to speak out.  This 
makes Taiwan very different from China across the Taiwan 
Strait. 
 
¶10.  (SBU) Congressmen Ortiz and Chabot did not have an 
opportunity to clear this report. 
YOUNG