VZCZCXYZ0011
RR RUEHWEB

DE RUEHIN #0209 0450843
ZNR UUUUU ZZH
R 140843Z FEB 08
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 8132
INFO RUEHBJ/AMEMBASSY BEIJING 7834
RUEHHK/AMCONSUL HONG KONG 9097

UNCLAS AIT TAIPEI 000209 
 
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: CHINESE ESPIONAGE CASE IN THE U.S. 
 
 
Summary:  Taiwan's major Chinese-language dailies focused news 
coverage February 14 on the March presidential poll and the UN 
referenda; on film director Steven Spielberg's decision Tuesday to 
pull out of the 2008 Olympics in Beijing; on the Chinese espionage 
case in the United States; and on the DPP administration's latest 
attempt to "rectify" the Chinese language.  The centrist, 
KMT-leaning "China Times" front-paged an exclusive news story saying 
that the DPP administration is clandestinely working to set up a 
defense industry company named "Taiwan Goal" to coordinate the 
business of the U.S.-Taiwan arms deals and to sell Taiwan-made arms 
to other countries.  In terms of editorials and commentaries, an 
editorial in the pro-independence "Liberty Times" discussed the 
Chinese espionage in the United States and said China will stop at 
nothing in its plotting to annex Taiwan.  End summary. 
 
"Chinese Espionage Case Exposed in the United States -- China's 
Conspiracy to Annex Taiwan Is All-Pervasive" 
 
The pro-independence "Liberty Times" [circulation: 720,000] 
editorialized (2/14): 
 
"... In short, the United States' cracking of the Chinese espionage 
case indicates that, with its growing national strength, China is 
able to deal with Taiwan via various channels.  China uses money as 
bait to lure the spies to steal classified national defense 
information from the United States in an effort to obtain a better 
understanding of the development of U.S. defense technology and the 
details of U.S. arms sales to Taiwan, which are useful for its 
saber-rattling against Taiwan.  Not only that, China also spent an 
enormous amount of money trying to win over Taiwan's diplomatic 
allies in an attempt thoroughly to squeeze Taiwan's elbow room in 
the international community.  Moreover, the economic benefits China 
has bestowed on the Taiwan businesspeople [on the mainland] will 
become the most advantageous leverage Beijing can use to manipulate 
these people, who will form an alliance with China once political 
disputes start fermenting on the island. That way China can demolish 
Taiwan from the inside without having to send a single solider [to 
the island].  In the face of China's multiple strategies and 
attacks, Taiwan is in an increasingly difficult situation.  The 
exposure of the Chinese espionage case in the United States is but 
the tip of the iceberg.  It is a common challenge for the 23 million 
people [on Taiwan] as to how to expose China's conspiracy to annex 
Taiwan." 
 
WANG