R 221012Z MAY 08
FM AIT TAIPEI
TO SECSTATE WASHDC 8988
INFO AMEMBASSY BEIJING 
AMCONSUL HONG KONG

UNCLAS AIT TAIPEI 000714 
 
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: PRESIDENT MA YING-JEOU'S INAUGURAL SPEECH 
 
Summary:  Taiwan's major Chinese-language papers focused their May 
22 news coverage on President Ma Ying-jeou's first international 
press conference Wednesday, in which Ma defined the party-to-party 
talks between the KMT and the Chinese Communist Party (CCP) as a 
"second-track" dialogue; on new DPP Chairperson Tsai Ing-wen and how 
she is going to lead her party; on the new Cabinet's plan to raise 
gasoline prices and increase electricity charges; and on the 
controversy over whether a KMT legislator still retains U.S. 
citizenship.  In terms of editorials and commentaries, an op-ed 
piece in the mass-circulation "Apple Daily" discussed new problems 
arising from improved U.S.-China-Taiwan relations.  The article said 
the chances are slim for both sides of the Taiwan Strait to unify, 
but the trend of the times is that, in terms of trade and economics, 
Taiwan will integrate with China and eventually with the entire East 
Asian region, and it remains to be seen how the three sides will 
interact with each other.  End summary. 
 
"New, Difficult Problems Amidst Guarded Optimism for 
Taipei-Washington-China [Relations]" 
 
Professor Edward Chen of Tamkang University's Graduate Institute of 
American Studies opined in the mass-circulation "Apple Daily" 
[circulation: 520,000] (5/22): 
 
"... President Ma said [he] wants to strengthen cooperative 
relations with the United States, [Taiwan's] security ally and 
trading partner, and he will rationalize the island's defense budget 
and acquire necessary defensive weaponry.  He also said he will 
resume dialogue with mainland China on the basis of the '1992 
Consensus.'  All of these remarks will, without a doubt, make 
Washington feel relieved.  The KMT, when serving as the main 
opposition party previously, used to oppose the high-priced arms 
procurement package.  Likewise, the United States, out of political 
concerns, was also opposed to selling F-16 C/D fighter jets to 
Taiwan, does not support Taiwan's development of Hsiung Feng-IIE 
cruise missiles, and has been hesitant about selling submarines to 
Taiwan.  But times have changed.  Will the Ma administration and the 
Bush administration each have new considerations [with regard to 
arms procurements], particularly after Taiwan and the United States 
have recovered their mutual trust? 
 
"In the face of China's military edge, how is Taiwan able to build a 
solid defense crack force if it does not develop it by itself or 
purchase certain necessary defensive weapons?  How will it be able 
to have the confidence to negotiate with Beijing?  Obviously, when 
it comes to what and which are necessary defensive weapons, there 
are many differences between Taiwan and the United States that 
remain to be resolved.  In his inaugural speech, Ma did not say a 
word about signing a free trade agreement between Taiwan and the 
United States.  Similarly, U.S. Deputy Secretary of State John 
Negroponte did not mention any such agreement during a recent 
hearing at the U.S. Senate Foreign Relations Committee.  It appears 
that both Taipei and Washington have yet to reach a consensus on 
this issue.  But the question is:  Given that the Bush 
Administration is unwilling to set an example by signing a free 
trade agreement with Taipei, how can Taipei possibly expect Beijing 
to be willing to allow ASEAN to negotiate with Taiwan over a similar 
agreement? ... 
 
"Using Cold War thinking, Washington is concerned that unification 
between the two sides of the Taiwan Strait will be unfavorable for 
the United States' national and strategic interests.  But judging 
from the perspective of post-Cold War thinking, with the two great 
powers -- the United States and China -- standing next to each 
other, chances are slim for both sides of the Taiwan Strait to 
unify.  But the trend of the times is that, in terms of trade and 
economics, Taiwan will integrate with China and eventually with the 
entire East Asian region.  It is noteworthy as to how the three 
sides will interact to face such a trend." 
 
WANG