VZCZCXYZ0005
RR RUEHWEB

DE RUEHIN #0135/01 0400826
ZNR UUUUU ZZH
R 090826Z FEB 09
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 0852
INFO RUEHBJ/AMEMBASSY BEIJING 8908
RUEHHK/AMCONSUL HONG KONG 0360

UNCLAS AIT TAIPEI 000135 
 
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, OBAMA'S 
LEADERSHIP, U.S. CAPITALISM 
 
¶1. Summary:  Taiwan's major Chinese-language dailies focused their 
February 7-9 news coverage on the island's sagging economy, on a 
Central Election Commission decision Friday to revoke the elected 
status of a former KMT legislator who resigned in January over her 
U.S. citizenship status; and on the island-wide celebrations of the 
Lantern Festival.  In terms of editorials and commentaries, an 
analysis in the pro-independence "Liberty Times" criticized what it 
believes to be the China-tilting cross-Strait policy of the Ma 
Ying-jeou administration, saying it has caused Taiwan to lose the 
trust of the United States and Japan.  A separate "Liberty Times" 
op-ed piece also chimed in by saying that Taiwan's security has been 
pushed to the brink of a precipice because of the Ma 
administration's strategic ignorance.  An editorial in the 
pro-independence, English-language "Taiwan News" urged the Ma 
administration to issue a clear, official response to Chinese 
President Hu Jintao's six-point speech delivered in December, 2008, 
and assert Taiwan's sovereignty and independent status.  A column in 
the conservative, pro-unification, English-language "China Post" 
commended the Obama administration, saying "the performance of 
President Obama has conveyed an impression that he has been trying 
hard to reform the long-standing undesirable bureaucratic way of 
doing things in Washington, D.C."  A separate "China Post" 
editorial, on the other hand, discussed U.S.-style capitalism and 
said "it is obvious that U.S.-brand capitalism is in need of 
change."  End summary. 
 
¶2. U.S.-China-Taiwan Relations 
 
A) "Unable to Tell Friend from Foe, [Ma Ying-jeou's] Tilting toward 
China Has Cost [Him] the Trust of the United States and Japan" 
 
Journalist Su Yung-yao said in an analysis in the pro-independence 
"Liberty Times" [circulation: 700,000] (2/8): 
 
"The international situation always changes in the blink of an eye. 
Since the Obama administration took office, it is generally believed 
that the United States will be so fully occupied with its domestic 
economic [problems] and the Middle East situation that it can hardly 
find time to attend to other issues.  But the newly sworn-in 
Secretary of State Hillary Clinton has picked Japan as the first leg 
of her first overseas visit after taking office.  The message subtly 
revealed here may likely run counter to the China-tilting policy 
promoted by the Ma administration. ... [The message] showed that the 
United States still regards Japan as its most important ally in the 
Asia-Pacific region and that the Obama administration of the 
Democratic Party will continue the Asia-Pacific policy previously 
upheld by the Clinton administration.   But the Ma administration's 
cross-Strait policy, which is completely tipped in China's favor, 
will not only result in Taiwan's losing the trust of the United 
States and Japan but will also let Beijing get whatever it wants. 
With friends gone and foes remaining, Taiwan will be 'locked in by 
China.'" 
 
B) "It [Taiwan] is Being Marginalized Strategically, Not that 
[China's] Threats [against Taiwan] are being Minimized" 
 
Lai I-chung, an executive committee member of the Taiwan Thinktank, 
opined in the pro-independence "Liberty Times" [circulation: 
700,000] (2/9): 
 
"... The manipulations of the Ma administration over the past eight 
months have resulted in the gradual erosion of the six-decade-old 
strategic foundation between the United States and Taiwan, the same 
as what happened to the U.S.-Korean alliance during the Roh Moo-Hyun 
administration.  The episode in which Seoul was marginalized because 
of nuclear proliferation on the Korean Peninsula at that time is now 
being repeated in Taiwan's marginalization in the Taiwan Strait. 
Given that Taiwan is unilaterally tilting toward China, the United 
States will naturally negotiate with China in order to ensure its 
interests in the Taiwan Strait.  This will happen because Taiwan has 
abandoned its own bargaining chips, which have caused Washington to 
believe that it now has no need to talk with Taiwan. ...  What the 
island is facing now are not minimized threats [from China] but 
being marginalized strategically.  Ma Ying-jeou was very pleased 
with himself for the fact that Taiwan was not mentioned in the 
[recent] U.S.-China dialogue.  Taiwan's security has [in fact] been 
pushed to the brink of a precipice due to the Ma administration's 
strategic ignorance." 
 
C) "Ma Must Issue Clear Response to Hu Now" 
 
The pro-independence, English-language "Taiwan News" [circulation: 
20,000] editorialized (2/9): 
 
"... While the world community may be encouraged by Hu's call for 
both sides of Taiwan Strait to end political antagonisms, what lies 
behind the PRC leader's sugar-coated pill is a demand for Taiwan's 
acceptance of Beijing's 'one China principle,' which posits that 
 
Taiwan is part of the PRC, as a precondition for any political 
negotiations.  Ma's delay [to respond] threatens to consolidate the 
growing impression in the world community that the current Taiwan 
government has accepted Hu's demand and thus risks undermining both 
Taiwan's sovereignty and any future claim for a international status 
distinct from the PRC. ... 
 
"Given the lack of domestic consensus on Ma's one-sided push toward 
cross-strait reconciliation and the insistence by the Taiwan-centric 
opposition camp led by the DPP that Ma has sacrificed Taiwan's 
sovereignty and compromised his democratic mandate, such concerns 
are not trivial for the KMT in a crucial election year, especially 
since the promised economic benefits of closer ties have failed to 
materialize.  Most importantly, the excessive haste of the KMT's 
rush to reconciliation with Beijing is sparking concern in 
Washington and Tokyo over whether this process will lead to genuine 
"peace and stability" or turn the Taiwan Strait into a "Chinese 
lake" that would be unfavorable to U.S. and Japanese interests. ... 
 
"It is therefore imperative for Ma to cease delay and clearly issue 
an official response that takes into consideration Taiwan's domestic 
interests and diverse viewpoints, the threats embedded in Hu's 
six-point statement and the danger of the perpetuation of a 
distorted international impression that "Taiwan is moving toward 
becoming part of China." Ma should first affirm the majoritarian 
consensus that only the 23 million Taiwan people can decide Taiwan's 
future and highlight both Taiwan's pluralistic public opinion on the 
direction and process for the development of cross-strait relations. 
...  On the other hand, if Ma allows his adoption of "ambiguity" on 
Taiwan's sovereignty to be overwhelmed by Hu's clear declaration of 
China's sovereignty over a democratic and independent Taiwan, then 
neither he or the KMT government deserves the support of the Taiwan 
people." 
 
¶3. Obama's Leadership 
 
"Obama's Refreshing New Leadership" 
 
Columnist William Fang wrote in the conservative, pro-unification, 
English-language "China Post" [circulation: 30,000] (2/7): 
 
"'Change' was the main theme of Barack Obama's campaign for the U.S. 
presidency. He has kept his promise after winning the election. And 
the first impressive change he has brought to the White House is his 
startling readiness and sincerity in admitting mistakes. ...  When a 
national leader like Obama publicly admits his misbehavior, he not 
only demonstrates that he is an upright politician but also he has 
self-confidence and will strive to improve himself by learning from 
his mistakes. In this sense, the election of Obama as the president 
should be considered a blessing for the American people. ...  In 
short, the performance of President Obama so far has conveyed an 
impression that he has been trying hard to reform the long-standing 
undesirable bureaucratic way of doing things in Washington D.C." 
 
¶4. U.S. Capitalism 
 
"U.S.-Style Capitalism Certainly Needs a Revamp" 
 
The conservative, pro-unification, English-language "China Post" 
[circulation: 30,000] editorialized (2/7): 
 
"... It is obvious that U.S.-brand capitalism is in need of change, 
and the time for change has come with Obama's election to the White 
House. 'It is shameful' and 'the height of irresponsibility' for 
Wall Street executives to reward themselves for bad management with 
taxpayer's money, Obama bellowed last week.  While Obama deserves 
two cheers for his bold action, there are still voices in his 
administration arguing that 'governments make poor bank managers.' 
Treasury Secretary Tim Geithner, for one, said recently 'we have a 
financial system run by private shareholders and managed by private 
institutions, and we'd like to preserve that system.'  What he was 
in fact arguing is that the shibboleth of American capitalism must 
be preserved, even though it is no longer the same.  In politics it 
seems, the fig leaf means a lot." 
 
YOUNG