VZCZCXYZ0005
RR RUEHWEB

DE RUEHIN #0694 1630545
ZNR UUUUU ZZH
R 120545Z JUN 09
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 1730
INFO RUEHBJ/AMEMBASSY BEIJING 9239
RUEHHK/AMCONSUL HONG KONG 0672

UNCLAS AIT TAIPEI 000694 
 
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.-TAIWAN ARMS SALES 
 
Summary:  Taiwan's major Chinese-language dailies focused June 12 
news coverage on the Executive Yuan's proposal to revise the Income 
Tax Law, scrapping the income tax exemption long enjoyed by military 
servicemen and teachers; on Taiwan Semiconductor Manufacturing 
Company (TSMC)'s decision to have TSMC Chairman Morris Chang double 
as the TSMC Chief Executive; and on the World Health Organization's 
declaration of the H1N1 pandemic.  In terms of editorials and 
commentaries, an editorial in the pro-independence, English-language 
"Taipei Times" reiterated Taiwan's need for F-16 C/D fighter jets 
and the importance of U.S. support of Taiwan's need.  The editorial 
also commented on the choice of Kurt Campbell as Assistant Secretary 
of State for East Asian Affairs as a good sign for Taiwan, because 
Campbell has a "strong record of support for Taiwan."  End summary. 
 
"Military Hopes Raised by US Signals" 
 
The pro-independence, English-language "Taipei Times" [circulation: 
30,000] editorialized (6/12): 
 
"Signs from Washington over the last few days must have encouraged 
those in the military who are clamoring for the purchase of 66 
F-16C/D fighter jets from the US.  Politicians attending a 
Taiwan-themed conference this week gave indications there was broad 
consensus on Capitol Hill to support such a move, and this was 
followed by more positive news on future arms sales from Kurt 
Campbell during his Senate confirmation hearing on Wednesday for the 
post of assistant secretary of state for East Asian affairs. 
 
"Let's be blunt: Taiwan's Air Force is in desperate need of some new 
hardware. ...  Compare this situation with China's rapidly 
modernizing military arsenal and it is clear that the Air Force 
needs the US to act fast on this matter if it is to maintain any 
semblance of credibility in air power. 
 
"Support from US lawmakers, however, does not necessarily translate 
to a green light, as any arms sale would also need the approval of 
the White House, the State Department and the Pentagon.  The 
likelihood of that approval is hard to assess because after five 
months in office there is no clear indication of the Obama 
administration's policy direction on Taiwan. 
 
"Campbell's confirmation would be a good sign, as he has a strong 
record of support for Taiwan.  But he alone will not be enough, as 
there are others in the administration, such as special envoy to 
North Korea Stephen Bosworth, who see Taiwan's democracy as an 
irritant in the US' relations with China. 
 
"There has been talk of a Taiwan policy review and this will surely 
be the key to determining the scope and scale of any sales, but 
Chinese relations with the US will also have a bearing on future 
deals, despite Washington's claims to the contrary. 
 
"But the biggest hurdle to sales of more advanced weaponry may be 
Taiwan itself.  Although there has been lots of positive feedback 
from US officials on the direction of cross-strait relations since 
the Chinese Nationalist Party (KMT) returned to power in May last 
year, the rapid pace of the rapprochement must also have raised 
concerns about the wisdom of selling advanced weaponry to Taipei 
while noises emanate from both sides of the Taiwan Strait about 
'military confidence-building measures.' 
 
"President Ma Ying-jeou's policy of downplaying Taiwan's military 
capacity to curry favor with Beijing and elicit economic favors 
could also make Taiwan reluctant to pursue such a high-profile deal. 
..." 
 
WANG