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C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 000926 
 
SIPDIS 
 
E.O. 12958: DECL: 07/30/2019 
TAGS: PGOV PINR TW CH
SUBJECT: PRESIDENT MA, CHAIRMAN MA: THE EFFECT OF MA'S 
CHAIRMANSHIP ON THE KMT 
 
REF: TAIPEI 0904 
 
Classified By: AIT Acting Director Robert S. Wang, 
for Reasons 1.4(B) and (D). 
 
¶1. (C) Summary. As expected, President Ma Ying-jeou was 
elected Chairman of the ruling Kuomintang (KMT) party in a 
July 26 election in which Ma was the lone candidate (reftel). 
 Ma's decision to assume the Chairmanship reflects his 
pragmatic assessment of the need to exercise greater control 
over the often fractious party.  While campaigning for 
President, Ma emphasized his determination to keep out of 
party politics if elected, saying he wanted to be President 
of all of the people of Taiwan, not just the KMT.  Ma's 
change of heart, Presidential Office Secretary-General Chan 
Chun-po told the Acting Director, was prompted by a desire to 
increase party discipline and the hope that Ma's clean public 
image will help reform the party and win votes in upcoming 
elections.  At the same time, KMT Secretary General Wu 
Den-yih cautioned that Ma should avoid using his position to 
coerce the Legislative Yuan's (LY) 80 strong-willed KMT 
legislators.  Wu dismissed worries from within the party that 
Ma could impose unwelcome reforms, arguing the KMT has 
already reduced party assets significantly in recent years. 
Wu expects to stay on as Secretary General to manage the 
year-end elections and the five key municipal-level elections 
in 2010.  End summary. 
 
Why Run for Chair? 
------------------ 
 
¶2. (C) Ma's position as KMT Chair will allow him to impose 
party discipline on the LY, something Ma did not feel he 
could do as President, Presidential Office Secretary-General 
Chan Chun-po told ADIR in a July 30 meeting.  According to 
Chan, due to Ma's legal training and his strict 
interpretation of the Constitution, Ma believes any attempt 
to influence KMT legislators would violate the Constitutional 
prohibition on interference by any of the five branches of 
government with the independence of another.  Chan, who acts 
as the president's liaison to the LY and the KMT, noted that 
Ma's early idealism, which resulted in various appointments 
based on experience and ability rather than party 
affiliation, angered many KMT stalwarts, who felt Ma's 
personnel decisions failed to reward those who supported his 
presidential bid. 
 
¶3. (C) Ma was thus frustrated, said Chan, with the 
KMT-dominated LY, which not only rejected several of his 
appointments, but also blocked his administration's attempts 
to pass new legislation and implement new policy directives. 
These KMT legislators, said Chan, focusing on personal 
concerns and independent local issues rather than a national 
agenda, compromised the administration's ability to implement 
its legislative priorities.  This, in turn, has affected 
public perception of the administration's performance.  As a 
result, Chan explained, Ma believed that assuming the KMT 
chairmanship was the only legal tool he could use to 
influence the legislative process, thus allowing for smoother 
passage of his programs and initiatives and to fulfill other 
campaign promises. (Note: Ironically, the opposition is now 
quick to point out that Ma has reneged on his campaign 
promise not to seek the KMT chairmanship. End note.) 
 
¶4. (C) In a separate meeting July 29, KMT Secretary-General 
Wu Den-yih agreed that holding the chairmanship allows Ma to 
directly influence KMT legislators.  But Ma must be careful 
not to attempt using his new position to strong-arm one of 
the most powerful legislatures in the world, Wu warned.  The 
KMT's current 80 legislators think they are "gods," and Ma 
must use a persuasive approach with both legislators and 
local KMT officials if he hopes to maintain party unity and 
support for his agenda, he said. 
 
Ma and the Reform Agenda 
------------------------ 
 
¶5. (C) Some in the party, like KMT Deputy Secretary-General 
Chang Jung-kung, worried that Ma could push a "reform agenda" 
 
TAIPEI 00000926  002 OF 002 
 
 
as Chair, either limiting the party's campaign activities in 
the south or pushing for the sell-off of assets.  If Ma 
forced the KMT to immediately divest itself of its remaining 
asset, the Central Investment Holding Company (CIC), the 
party could lose 70-80 percent of operating funds it also 
used for campaigns, Chang commented.  SYG Wu dismissed the 
possibility, however, noting that there was no financial 
motive to sell CIC in the current economic environment.  As 
KMT Chair, Ma must consider the party's future, said Wu. 
There is no need for a reform agenda, he added, because the 
party has already divested much of its previous assets over 
the years in undertaking recent reforms.  Presidential Office 
SYG Chan said Ma's public image as a champion of clean 
politics will, in fact, help the KMT transform itself from 
the old image of a corrupt political machine to a party of 
reform and vision. 
 
Managing the Elections and Expectations 
--------------------------------------- 
 
¶6. (C) Wu was confident that Ma would ask him to continue as 
KMT Secretary-General, and, despite a claim he could easily 
run for legislative office, Wu expected to stay on to manage 
the year-end elections and the five municipal-level elections 
in 2010.  Although the KMT expects to win the year-end 
elections in the North and perhaps even had chances in Yunlin 
and Chiayi, should the opposition Democratic Progressive 
Party (DPP) take any of the northern seats, said Wu, it could 
affect expectations for the larger elections in 2010.  Even 
in the south, a DPP stronghold, the KMT is not being 
complacent, he added.  The party may have to bring in big 
power players, especially in New Taipei City.  Chan also 
noted that Ma will need to continue to communicate with 
various factions inside the party, who may have an impact on 
year-end elections, but did not foresee any split within the 
party as the KMT continues to enjoy electoral success. 
 
Comment 
------- 
 
¶7. (C) Although some in the party are unsure of how active Ma 
will be as KMT Chairman, Ma appears to be taking steps to 
consolidate his support in the KMT and to ensure that 
legislators, made unruly by the overwhelming KMT legislative 
majority, continue to support his agenda.  While his ability 
to improve party discipline remains an important issue, it 
was clear Ma was not able to do so without the chairmanship. 
WANG