VZCZCXYZ0005
RR RUEHWEB

DE RUEHIN #0172/01 0351039
ZNR UUUUU ZZH
R 041039Z FEB 08
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 8074
INFO RUEHBJ/AMEMBASSY BEIJING 7809
RUEHHK/AMCONSUL HONG KONG 9072

UNCLAS AIT TAIPEI 000172 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - NIDA EMMONS 
DEPARTMENT PASS AIT/WASHINGTON 
 
E.O. 12958: N/A 
TAGS: OPRC KMDR KPAO TW
SUBJECT: MEDIA REACTION: U.S.-CHINA-TAIWAN RELATIONS 
 
Summary:  Taiwan's major Chinese-language dailies focused news 
coverage February 2-4 on the upcoming Lunar New Year holidays, on 
the March presidential poll and the UN referenda, on President Chen 
Shui-bian's landmark visit to Taiping Island in the disputed Spratly 
Islands Saturday, on the annual national college entrance 
examination Friday and Saturday, and on Microsoft Corp's offer to 
buy Yahoo last Friday.  In terms of editorials and commentaries, an 
editorial in the pro-independence "Liberty Times" discussed AIT 
Taipei Director Stephen Young's recent call on KMT Chairman Wu 
Poh-hsiung.  The article said the United States should facilitate, 
not oppose, Taiwan's UN referenda.  An editorial in the centrist, 
KMT-leaning "China Times" discussed the U.S. sub-prime mortgage 
crisis and its impact on Asia's and Taiwan's economies.  An 
editorial in the pro-independence, English-language "Taipei Times" 
discussed the possible U.S. recession and the heavy blizzards China 
is suffering now and said the Taiwan government "has every reason to 
keep a close watch" on future developments.  End summary. 
 
A) "The United States Ought to Facilitate Rather Than Boycott the 
Referenda [for Taiwan] to Join or Re-join the UN" 
 
The pro-independence "Liberty Times" [circulation: 720,000] 
editorialized (2/2): 
 
"AIT Taipei Director Stephen Young has reportedly called on KMT 
Chairman Wu Poh-hsiung recently and again expressed Washington's 
concerns over the referenda to join and re-join the UN, hoping that 
it will not turn into a race between the Blue and Green camps.  Wu, 
on the other hand, said the KMT's preexisting attitude [over its 
referendum] was to maintain the island's national dignity and 
complete sovereignty, and that he hopes the Legislative Yuan will 
come up with a resolution which will be acceptable both to the 
ruling and opposition parties.  In fact, behind the words and deeds 
of both Young and Wu, lies their real concern - China. 
 
The referenda regarding recovering the [KMT's ill-gotten] party 
assets [proposed by the DPP] and against corruption [proposed by the 
KMT], respectively, held in tandem with the legislative elections on 
January 12, both failed to pass because they did not receive 
participation by the required fifty percent of all eligible voters 
[to pass the threshold for referendum validity].  Anyone with 
insight is worried about whether the referenda [for Taiwan] to join 
or re-join the UN will have a chance to pass in the future.  Given 
such circumstances, the U.S. side remained persistent in opposing 
the UN referenda, and it is a great pity to see how Washington 
ignores the Taiwan people's aspirations [for Taiwan to] become a 
normal country. 
 
"Didn't it ever occur to the U.S. government that if the UN 
referenda were to be withdrawn or fail to pass just because of the 
ultimate factor of China, the result will be twisted by China and 
interpreted as following -- the Taiwan people are not interested in 
joining the UN; they don't believe that Taiwan is a country; [and] 
Taiwan is [indeed] part of the People's Republic of China?  Such an 
interpretation will result in the hollowing out of the foundation 
for the 'Taiwan Relations Act' and will instead serve as a [useful] 
cue for the 'Anti-Secession Law.'  Should this happen, it will be 
too late for the United States to express concerns about peace and 
stability in the Western Pacific area. 
 
"Perhaps the U.S. government believes that it is the United States' 
national interests to avoid touching the sensitive nerve of 
U.S.-China relations.  But in the long run, if China is allowed to 
act at its own discretion and use the rope of the 'one China 
principle' to tie up Taiwan in the international community, how is 
the United States going to 'provide Taiwan with arms of a defensive 
character' once Taiwan degenerates into becoming part of China or 
its domain of power?  How will Washington be able to prevent China 
from 'using non-peaceful means to determine Taiwan's future?' 
Should this happen, will it be consistent with the United States' 
national interests? ..." 
 
B) "Taiwan Can Hardly Keep out of the U.S. Sub-prime Mortgage 
Crisis" 
 
The centrist, KMT-leaning "China Times" [circulation: 400,000] 
editorialized (2/4): 
 
"... With the U.S. economics sliding into recession, will the 
emerging markets in Asia be able to dodge a disastrous outcome?  An 
International Monetary Fund report said that emerging markets are 
maintaining their high growth rates and will become the engine for 
global economic development.  But shrouded by the effects of 
globalization, not a single country in the world can be exempted 
from the influence of (economic recession).  Taiwan, in particular, 
whose economics is closely related to the U.S. market and whose 
economic growth relies solely on exports, will face severe 
challenges. ..." 
 
C) "Economic Blizzard Is a Harsh Reality 
 
The pro-independence, English-language "Taipei Times" [circulation: 
30,000] editorialized (2/4): 
 
"The unusually harsh winter weather in parts of China has put a 
great deal of economic activity on hold over the past three weeks, 
but the worst may be yet to come...  In the context of a global 
economy stained by the US subprime fallout and whispers of a US 
recession, it is unclear how markets would stand a slowdown in the 
Chinese economy.  And if the situation continues to deteriorate in 
the US, it is not clear how Chinese policymakers will react should 
that cut into exports.  The situation is delicate and the effects of 
China's poor infrastructure in combination with a cruel winter could 
multiply.  With its many business [sic] across the Taiwan Strait, 
Taiwan's government has every reason to keep a close watch." 
 
YOUNG