VZCZCXYZ0000
RR RUEHWEB

DE RUEHIN #0013/01 0050957
ZNR UUUUU ZZH
R 050957Z JAN 10
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 3055
INFO RUEHBJ/AMEMBASSY BEIJING 9600
RUEHHK/AMCONSUL HONG KONG 0987

UNCLAS AIT TAIPEI 000013 
 
SIPDIS 
 
DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/P, EAP/PD - THOMAS HAMM 
DEPARTMENT PASS AIT/WASHINGTON 
 
E.O. 12958: N/A 
TAGS: OPRC KMDR KPAO TW
SUBJECT: MEDIA REACTION: U.S. BEEF IMPORTS 
 
¶1. Summary:  Taiwan's major Chinese-language dailies focused news 
coverage January 1-4 on the New Year celebrations; on the 
controversy over the U.S. beef issue and the discussions in the 
Legislative Yuan over amendments to the law concerning U.S. beef 
imports; and on cross-Strait relations. 
 
¶2. Many editorials and commentaries continued to focus on the 
controversy over U.S. beef imports.  A column and two op-ed pieces 
in the pro-independence "Liberty Times" continued to lambast the Ma 
administration for opening Taiwan to imports of U.S. beef and beef 
products.  One op-ed said a referendum on U.S. beef imports will be 
the only way that the Ma administration can resolve the controversy. 
 An editorial in the mass-circulation "Apple Daily" said the U.S. 
beef issue must not be turned into a tool to be used by the Ma 
administration, the U.S. government or the arms dealers to 
intimidate the Taiwan people, as the consequences will be 
unfavorable for both Taiwan and the United States.  Editorials in 
the English-language "Taipei Times," "China Post," and "Taiwan News" 
all discussed the U.S. beef issue and said no one is winner in the 
"beef war."  End summary. 
 
A) "Dreading China and Fearing the United States?  Taiwan Has Become 
an Insignificant Person to Blame" 
 
Washington correspondent Nadia Tsao wrote in the "Focus Commentary" 
column in the pro-independence "Liberty Times" [circulation: 
680,000] (1/1): 
 
"... There are psychological and political factors behind Taiwan's 
opposition to expanded imports of U.S. beef, yet the United States' 
disappointment and anger [toward Taiwan's moves to bar the import of 
certain U.S. beef products] are also reasonable and understandable. 
But Taiwan officials' threatening [remarks] citing the visa-waiver 
program, talks over the Free Trade Agreement and arms sales as 
possible U.S. retaliatory means are nothing but foolish 
interpretations lacking common sense in diplomacy. ... President Ma 
Ying-jeou said not long ago that U.S.-Taiwan relations are in their 
best state over the past six decades.  How come a [simple] beef 
dispute would turn Washington into some country like crazy 
Pyongyang?  It is true that Taiwan's failure to adhere to the 
[U.S.-Taiwan beef] deal will damage the bilateral relationship, 
particularly that with those U.S. congressmen who represent the 
agriculturally-oriented states and are friendly with Taiwan.  Taiwan 
needs to communicate with the United States in an attempt to uncover 
solutions that are acceptable for both sides.  But the Ma 
administration should stop 'bragging' when handling foreign 
relations and should stick to the facts.  U.S.-Taiwan relations have 
always been complicated, so disputes and differences are 
unavoidable.  Conflicts provide the [best] moments for both sides to 
test the strength of their relations and [their] crisis management 
ability." 
 
B) "Ma Must No Longer Remain Stubborn over the Referendum on U.S. 
Beef [Imports]" 
 
Bill Chang, a consultative member in the Taiwan Thinktank, opined in 
the pro-independence "Liberty Times" [circulation: 680,000] (1/2): 
 
"... As it stands now, [holding] a referendum [on U.S. beef imports] 
will be the only way that the Ma administration can resolve the 
issue and explain its position to the United States.  If the 
referendum is passed against the import of U.S. beef, no one can say 
anything against it, and President Ma does not have to carry the 
burden of being a party chairman unable to command the party's 
legislators.  Even if the United States decides to retaliate against 
Taiwan over the referendum results, the responsibility will not fall 
on President Ma, because it is a popular vote.  With such an 
approach, perhaps it will be easier to convince Washington and 
alleviate the pressure from the United States. ...  If the 
referendum fails to pass, it will give the Legislative Yuan room to 
modify its resolution.  Now it all depends on whether President Ma 
has the guts to hold the referendum." 
 
C) "U.S. Beef Issue Exposes Fragility of Taiwan-U.S. Relations" 
 
Liu Shih-chung, now a Visiting Fellow at the U.S.-based Brookings 
Institution, opined in the pro-independence "Liberty Times" 
[circulation 680,000] (1/3): 
 
"The seemingly improved Taiwan-U.S. relations since the Ma Ying-jeou 
administration assumed office have [changed to the extent that] they 
may possibly endanger the progress on other issues that both sides 
have been working on.  [This is] due to the Ma administration's lack 
of transparency during the policy-making process in opening Taiwan's 
market to U.S. beef, offal and ground beef and its sending the wrong 
message to Washington. ...What [National Security Council 
Secretary-General] Su Chi failed to explain clearly to the Obama 
administration was Ma's declining approval rate in Taiwan and the 
Taiwan people's impatience with the Ma administration's black-box 
[policy-making] operation model.  Over the past few months, the 
dilemma facing the Ma administration since Typhoon Morakot, the 
legislative by-election in Yunlin County, the KMT's defeat in the 
December three-in-one local elections, and a series of subtle 
changes in Taiwan's politics have all added [up] to have a critical 
impact on the decision to allow the import of U.S. beef. ... 
 
"The Taiwan people want to ask the Ma administration:  In contrast 
to the ups and downs in Taiwan-U.S. relations under the previous DPP 
administration, which twice announced the opening to imports of U.S. 
beef (with beef offal and ground beef excluded), how come the Ma 
administration, which brags that Taiwan-U.S. relations have never 
been better, was unable to stick to the bottom line like the DPP 
administration and, further, abandoned the defense of beef offal and 
ground beef?  The idea that the U.S. beef issue is just a single 
accident, which will not affect the progress of other issues Taiwan 
and the United States have been working on, underestimates the 
fragility of Taiwan-U.S. relations.  The Ma administration, since it 
assumed office, has been doing all it can to curry favor with 
Washington, and, as a result, it naturally deserves more immediate 
policy returns in exchange.  But the fact is just the opposite -- 
Taiwan lost even more bargaining chips and strength. 
 
"The Pentagon's and National Security Council's proposed reports on 
arms sales to Taiwan originally sat on Obama's desk, but the sudden 
changes in the U.S. beef issue would surely result in the U.S. trade 
agencies making proposals to the White House, which are unfavorable 
for Taiwan.  Perhaps the State Department is now mapping out its 
retaliation list against Taiwan, and the gifts of arms deals for the 
Ma administration, which were originally planned to be offered 
before the Lunar New Year, will likely be halted; key figures in the 
trade agencies, who originally planned to visit Taiwan, will likely 
cancel [their trips.]  Ma should be ready to offer a good 
explanation to the United States when he transits the West Coast of 
the United States at the end of January." 
 
D) "Who Is Intimidating Taiwan?" 
 
The mass-circulation "Apple Daily" [circulation: 520,000] 
editorialized (1/4): 
 
"... There are plenty of tools in the U.S. diplomatic toolbox, which 
Washington can easily grab to deal with Taiwan, such as adjustments 
in high-level visits, treatment for the Taiwan president when 
transiting the United States, the decision over whether to help 
Taiwan participate in international organizations where statehood is 
not a requirement, including Taiwan in the trade dumping list, 
stopping or slowing down the Taiwan-U.S. Trade and Investment 
Framework talks.  It doesn't even have to get to the security level. 
 But if Washington treats Taiwan as a target for threatening and 
retaliation, such as stopping its arms sales to Taiwan, or keeping a 
hands-off attitude toward the 'Taiwan Relations Act (TRA),' or 
gradually push for the abolishment of the TRA, this will not only 
harm the bilateral interests of Taiwan and the United States in East 
Asia but will also incite Taiwan's nationalism to the extent of 
pushing the island to declare independence or [seek] unification 
with China out of desperation. ... None of these will serve the 
United States' interests.  As a result, the U.S. beef issue must not 
turn into a tool used by the Ma administration, the U.S. 
administration or the arms dealers to intimidate the Taiwan people, 
as the consequences will be unfavorable for both Taiwan and the 
United States." 
 
E) "Beef Spat Mustn't Harm US Relations" 
 
The pro-independence, English-language "Taipei Times" [circulation: 
30,000] editorialized (1/4): 
 
"The controversy over imports of US beef is a typical example of a 
storm in a tea cup. Thanks to the government's neglect of public 
opinion, inability to implement party discipline and persuade the 
legislature, what was originally one of many items on the US-Taiwan 
trade talk agenda has created a backlash and prompted a strongly 
worded US statement warning Taiwan not to break the agreement. 
US-Taiwan tensions have now developed into a full-blown political 
storm.  Taiwan still hasn't made a final decision on the issue, nor 
has the US decided how to respond, but the administration of 
President Ma Ying-jeou has made several guesses at what the US 
measures might be. These include delaying a bilateral trade and 
investment framework agreement, delaying an arms deal and suspending 
talks about visa exemptions for Republic of China citizens. The 
situation has caused the government to fear changes to the Taiwan-US 
strategic relationship. 
 
"Although the legislature is planning to amend the Act Governing 
Food Sanitation  to ban the importation of US beef innards and 
ground beef, this only makes up a small part of US beef imports. It 
will have a minor impact on import volumes and value, but could help 
improve public acceptance of US beef, which is a lot better than 
possible boycotts and stagnant sales because of quality concerns and 
consumer fears. The US government should take a hard look at what is 
the better alternative for US beef farmers. ...  The beef 
controversy must not be allowed to affect the US-Taiwan alliance and 
Washington should consider the wisdom of pushing Taiwan, an 
important strategic bargaining chip for the US, closer toward a 
China that is about to become a great power." 
 
F) "Beef Debacle Is Ma's Opportunity" 
 
The pro-independence, English-language "Taipei Times" [circulation: 
30,000] editorialized (1/1): 
 
"...The US has now issued a strong response. Failure to resolve the 
issue might have an impact on - Taiwan-US trade and economic ties, 
visa exemptions for Taiwanese and possibly, in some way, more 
serious concerns such as defense.  The Chinese Nationalist Party 
(KMT) may hold three-quarters of all legislative seats, but the 
outcome of legislative negotiations has resulted in stronger 
controls on US beef imports, overturning the original protocol. This 
is tantamount to rebellion and means the legislature is drawing a 
line in the sand, while also dealing Su a sucker punch. However, 
President Ma Ying-jeou will suffer most - with the situation 
spinning out of control, his authority as a leader will be dealt a 
severe blow.  Ma pays a great deal of attention to his image and 
stresses the importance of communication and compromise, but shows a 
glaring lack of skill in both. ... 
 
"The US beef issue has resulted in a huge political hiccup, but Su's 
highhanded manner is causing widespread discontent, even within the 
blue camp. When the government gave the green light to US beef 
imports, Minister of Health Yaung Chih-liang almost resigned. The 
legislature was not informed in advance, was not consulted during 
negotiations, and after the signing, was required to support the 
decision. Neither the opposition nor the pan-blue camp was willing 
to endorse the protocol and once the public protested, they went on 
the attack.  Had the NSC conducted a comprehensive assessment prior 
to its decision, it would have produced a report to persuade the 
public and legislature and allay concerns. The decision to fully 
relax restrictions on US beef imports was not based on an expert 
assessment, which highlights the NSC's incompetence. The controversy 
is a longstanding one and if Su was not aware of its seriousness, 
then he was negligent. ... The government's weak response to Typhoon 
Morakot was a wake-up call for Ma after his presidential election 
victory, while the KMT setback in recent local elections created a 
sense of urgency. This is the chance Ma needs to carry out 
wide-scale party reform. The legislature has moved against the beef 
protocol and Ma has lost face at home and abroad. The only way for 
him to turn things around is to learn his lessons. Otherwise, 
cross-strait talks on an economic pact with China will prove to be 
another disaster." 
 
G) "Everybody Is a Loser in the 'Beef War'" 
 
The conservative, pro-unification, English-language "China Post" 
[circulation: 30,000] editorialized (1/1): 
 
"Lawmakers are getting ready to vote on and pass an amendment to the 
Food Sanitation Act next Tuesday to ban ground beef and bovine offal 
imports from the United States. But that isn't going to end the beef 
war across the Pacific, and everybody loses in the fight over the 
issue which shouldn't be an issue in the first place. ...  The 
government is the biggest loser in the ongoing war. President Ma 
Ying-jeou is sending a delegation to Washington to mend fences after 
the U.S. government expressed deep concern over the expected passage 
of the amendment to the act. ... The warning is being heeded, of 
course. But the damage has been done. There is no way to prevent the 
railroading of the amendment albeit Ma's Kuomintang (KMT) controls a 
virtual three-fourths majority in the Legislative Yuan. The 
Americans are losing the beef war because they started it at the 
wrong time. Negotiations for the protocol had gone on for two years 
and there was no reason whatsoever for Washington not to wait 
another month or so to conclude it with Taipei after Taiwan's 
all-important local elections were over. The opposition Democratic 
Progressive Party (DPP), champing at the bit to win the elections on 
Dec. 5 in order to prove it is beginning to claw back to power, 
jumped at the godsend opportunity to turn a non-issue into an issue 
of "life or death" of the people, about whose well-being they claim 
the KMT government simply cares less. It's a non-issue because by 
far the great majority of people in Taiwan do not eat beef and they 
do not care whether bovine products are imported or not from 
anywhere in the world. Younger people take to hamburgers, but they 
can choose those made from ground beef imported from countries other 
than the U.S. The protocol does not compel the government to force 
the beef-lovers to consume American steaks. 
The fence-mending isn't likely to work. The administration is 
bracing for retaliation after it failed to avert the crisis by 
convincing the doubtful people that U.S. ground beef and offal are 
safe to eat. ... Ma's loss is just as serious. ...  The people of 
Taiwan also lose. They appear as unreasonable supporters of 
narrow-minded political agitators who are accusing the U.S. of 
attempting to bully Taiwan into buying unwanted beef products. Their 
image as friends of the U.S. is tarnished. Once tarnished, it's very 
hard to burnish. If trade between Taiwan and the U.S. dwindles as a 
result of the beef war, all the people of Taiwan will equally suffer 
the consequence.  And the chief culprit is the legislative branch of 
the government. Lawmakers have sacrificed Taiwan's credibility as a 
trustworthy trading partner the world over by flexing their muscles 
to get even with what they believe is the clumsy but arrogant 
administration. What price their demonstration of power!" 
H) "U.S. Should Understand Taiwan's Beef Stand" 
 
The pro-independence, English-language "Taiwan News" [circulation: 
20,000] editorialized (1/4): 
 
"United States government officials have expressed exasperation over 
why Taiwan's Legislative Yuan may revise the Food Sanitation Act 
Tuesday to ban imports of U.S. ground beef, offals or even beef in 
bone.  Senior officials of President Ma Ying-jeou's right-wing 
Chinese Nationalist Party (Kuomintang) government have publically 
speculated that U.S. President Barack Obama's Democratic Party 
administration will retaliate against Taiwan's alleged 'unilateral 
abrogation' of the protocol signed Oct. 22 by Taiwan Economic and 
Culture Representative Office and American Institute in Taiwan to 
reopen imports of these risky US beef through delaying talks on a 
long-expected U.S.-Taiwan Trade and Investment Framework Agreement 
(TIFA) or even by further delays in defensive arms sales.  Such 
ill-disguised threats aim to blur the truth that this fiasco has 
been caused solely by the hubris and incompetence of President Ma 
Ying-jeou's right-wing Chinese Nationalist Party (Kuomintang) and 
its refusal to respect Taiwan's democratic values of transparency 
and accountability in the negotiation of this secret pact. ... 
 
"Nevertheless, the U.S. government should react to the Legislative 
Yuan's action cautiously based on mutual respect for democratic 
procedures.  Washington should refrain from pretending that the BSE 
concerns are a 'false issue' or using the TIFA talks or defensive 
arms sales to pressure the Taiwan legislature to accept a secret 
protocol, whose full content remains unknown even to KMT lawmakers. 
Instead, the Obama administration should convene an inter-agency 
meeting to consider methods to resolve the flap, preferably through 
renegotiation with the Taiwan government in a manner consistent with 
democratic procedures. For its part, the Ma administration should 
work to prevent any broader impact on other aspects of U.S.-Taiwan 
relations. 
 
"Ma has publically claimed that his efforts to forge peace and 
dialogue with the PRC regime has also led to the 'best U.S.-Taiwan 
relations for the past 60 years.' If this is the case, Ma's KMT 
administration should have accumulated enough political capital to 
persuade Washington not to make any unfriendly gestures toward 
Taiwan and to renegotiate the pact. We strongly urge the Ma 
government to stand upright in talks with U.S. counterparts and 
refrain from repeating the mistake of carrying out such talks behind 
the backs of Taiwan lawmakers and citizens and instead publically 
affirm his commitment to reflect Taiwan's pluralist views in new 
beef import talks. Most importantly, Ma should demonstrate his 
sincerity to correct his mistakes by requiring Su to resign to take 
full political responsibility. ... What Taiwan needs now is a 
national security advisor who respects Taiwan's democratic values 
and principles." 
 
STANTON