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DE RUEHIN #1270/01 2390257
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P 260257Z AUG 08
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC PRIORITY 9836
INFO RUEHAC/AMEMBASSY ASUNCION 0079
RUEHBJ/AMEMBASSY BEIJING 8559
RUEHMU/AMEMBASSY MANAGUA 0182
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RUEHGZ/AMCONSUL GUANGZHOU 1398
RUEHHK/AMCONSUL HONG KONG 0006
RUEHGH/AMCONSUL SHANGHAI 2218
RUEHSH/AMCONSUL SHENYANG 6779
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC
RHHJJAA/JICPAC HONOLULU HI
RUEKJCS/SECDEF WASHINGTON DC
RHHMUNA/USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 02 TAIPEI 001270 
 
SENSITIVE 
SIPDIS 
 
STATE PASS TO HOUSE FOREIGN AFFAIRS COMMITTEE ENGEL 
 
E.O. 12958: N/A 
TAGS: CH ECON MARR PGOV PREL TW
SUBJECT: REPRESENTATIVE ENGEL MEETS TAIWAN OFFICIALS 
 
REF: TAIPEI 01259 
 
SENSITIVE BUT UNCLASSIFIED.  PLEASE PROTECT ACCORDINGLY. 
 
¶1. (SBU) Summary.  Representative Eliot Engel (D-NY) 
discussed U.S.-Taiwan relations, cross-Strait relations, and 
Taiwan's foreign policy in separate meetings on August 19-20 
with Legislative Yuan (LY) Speaker Wang Jin-pyng, Mainland 
Affairs Council (MAC) Chairperson Lai Hsin-yuan, Straits 
Exchange Foundation (SEF) Chairman P.K. Chiang, Foreign 
Minister Francisco Ou, and Vice Defense Minister Admiral Lin 
Jan-yi.  (Rep. Engel's meeting with President Ma Ying-jeou is 
reported reftel.)  End Summary. 
 
LY Speaker: Ma Working Hard to Restore Trust 
-------------------------------------------- 
 
¶2.  (SBU)  In his August 20 meeting with Rep. Engel, 
Legislative Yuan Speaker Wang Jin-pyng (KMT) noted that the 
Ma administration was working hard to restore mutual trust to 
the U.S.-Taiwan relationship.  Wang's impression during his 
recent travels to D.C. and New York was that, since Ma's 
election, the U.S.-Taiwan relationship had begun to recover 
from the tensions that prevailed under Chen Shui-bian.  Wang 
said he had met with the foreign affairs advisors of both 
U.S. presidential candidates and both assured him that U.S. 
support for Taiwan would remain strong. 
 
¶3. (SBU) Responding to Wang's pitch on arms sales, 
Congressman Engel said that, if and when the administration 
presented Congress with the request, he would support it. 
Wang said Speaker Pelosi expressed similar support during 
their meeting in D.C.  Although Engel hoped the package would 
reach Congress by the end of the year, the presidential 
election could politicize the process and create delays. 
Wang also pitched an FTA, arguing that, because Taiwan's 
meaningful participation in multilateral economic 
organizations was limited, it needed to look to bilateral 
agreements with various countries.  Thus, while Wang voiced 
support for the TIFA, he noted that Taiwan would prefer to 
conclude an FTA with the United States - not least because it 
would encourage other countries to do the same.  Responding 
to Wang's observation that FTAs were not always popular in 
the Democratic Party, Engel said his primary concern was that 
FTAs ensure fair trade and, as such, included labor and 
environmental protections. 
 
¶4. (SBU) Wang, just back from a trip to Tokyo, said 
Japan-Taiwan relations had deteriorated markedly under Ma. 
He attributed this to conflict over the sovereignty of the 
Daoyutai (Senkaku) Islands and Japan's distrust of Ma's 
intentions.  He remarked that the Japanese felt the KMT's 
harsh treatment of Koh Se-kai, the former Taiwan 
Representative to Japan, reflected the Ma government's 
attitude toward Japan itself.  It did not help that after Koh 
was recalled in June, a new representative (John Feng) was 
not named until August 19.   Wang said a key goal of his 
trip was to help alleviate tension in the relationship. 
 
MAC and SEF: Reducing Tensions and Looking Ahead to Talks 
--------------------------------------------- ------------ 
 
¶5.  (SBU)  Rep. Engel inquired about cross-Strait relations 
in his meeting with Mainland Affairs Council (MAC) Chairman 
Lai Hsin-yuan on August 19.  Lai expressed no concern about 
her ability to function as the highest profile DPP member of 
the Ma team.  Lai reaffirmed the "Three No's" (No 
unification, no independence, no use of force) and explained 
the reasons behind the efforts by the Ma administration to 
improve cross-Strait relations, emphasizing the need to 
maintain peace and stability and reduce tensions.  On the 
economic front, Lai acknowledged China enjoys more benefits 
 
TAIPEI 00001270  002 OF 002 
 
 
from cross-Strait ties than Taiwan does and lamented Taiwan 
has yet to make the best of these ties.  Lai looks forward to 
policy deregulation that will allow mainland investment in 
Taiwan and pave the way for Taiwan businessmen to channel 
their mainland profits back to Taiwan. 
 
¶6.  (SBU) Straits Exchange Foundation (SEF) Chair P.K Chiang 
told Rep. Engel on August 19 that he expected the upcoming 
SEF-ARATS negotiations in Taipei to result in specific 
agreements on more direct charter flight routes, daily 
charter flights, air cargo and parcel post shipments and 
maritime shipping.  Chiang said that he wasn't sure if the 
two sides can reach agreement on daily scheduled flights. 
 
FM: Ma Foreign Policy on the Right Track 
---------------------------------------- 
 
¶7.  (SBU) Rep. Engel and FM Francisco Ou discussed foreign 
policy issues, focusing on developments in Latin America in 
their August 20 meeting.  Noting his long-term support for 
Taiwan, Rep. Engel pointed out that the U.S. and Taiwan share 
the same values of democracy, freedom, and human rights, a 
striking contrast to China.  Rep. Engel stressed the 
importance for Beijing to understand the strong U.S. 
commitment to Taiwan, adding that he would urge the new U.S. 
president, whoever is elected, to reaffirm this commitment. 
In a review of political developments in Latin America, Rep. 
Engel noted China's increasing influence and presence and 
also expressed concerns about Iran's activities in the 
region.  Ou expressed confience that Taiwan's new diplomatic 
policy under the Ma administration was on the right track, 
saying he believed a "diplomatic truce" with Beijing is 
feasible because it met the interests of both sides. 
Democratic values are Taiwan's most important international 
asset, Ou said.  Noting Taiwan's significant diplomatic 
presence in Latin America, Ou expressed appreciation for Rep. 
Engel's support with respect to the region. 
 
VMOD: Seeking Movement on Arms Packages 
--------------------------------------- 
 
¶8.  (SBU)  Rep. Engel and Vice Defense Minister Admiral Lin 
Jan-yi discussed arms packages and the China-Taiwan-U.S. 
military context on August 20.  ADM Lin thanked Congressman 
Engel for his continued support of Taiwan and for being one 
of the signatories on the letter to President Bush pushing 
for movement on what he termed the "stalled" arms packages. 
ADM Lin stressed the importance of the arms for the defense 
of Taiwan.  Lin expressed the view that China's recent 
military expansion testified to China global intentions, 
since it was much greater than needed for a Taiwan 
contingency.  Congressman Engel agreed and said that, while 
the United States seeks cordial relations with China, the 
United States must also be prepared for an adversarial 
relationship.  Taiwan was determined to defend itself, Lin 
said.  Taiwan needed to remain strong to prevent war, he 
added, but would not provoke war or fire the first shot. 
Congressman Engel expressed concern regarding the available 
days in the current Congressional calendar for notification 
of the arms packages.  In reaffirming his support for U.S. 
arms sales to Taiwan, Congressman Engel also indicated 
concurrence with President Ma's position that Taiwan needs a 
strong defense in order to negotiate with China from a 
position of strength. 
 
¶9.  (U)  Congressman Engel did not have an opportunity to 
clear this cable. 
WANG