CHEN: OVERSEAS OFFICES, SOE'S TO BE CALLED

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 003854

SIPDIS

STATE PASS AIT/W

E.O. 12958: DECL: 10/10/2013
TAGS: PREL PGOV TW
SUBJECT: CHEN: OVERSEAS OFFICES, SOE'S TO BE CALLED
"TAIWAN" BY 2006

Classified By: AIT Director Douglas Paal, Reason: 1.4 (B/D)


1. (C) Summary: President Chen Shui-bian pledged to change
the name of Taiwan's overseas offices and State Owned
Enterprises from "China" to "Taiwan" by 2006 during a
December 5 press conference at Democratic Progressive Party
(DPP) headquarters. In the same speech, Chen reiterated his
intention to abide by his 2000 and 2004 inaugural commitments
regarding constitutional reform. He stated that Taiwan needs
a constitutional reform plan that will improve governance and
meet Taiwan's current needs rather than a "debate over
ideology or verbal slogans." Chen's remarks came just hours
before the start of a large "name rectification" (zhengming)
rally organized by supporters of former President Lee
Teng-hui. Chen's aides say the president's December 5
remarks were meant to defend the DPP's left flank from Lee's
Taiwan Solidarity Union (TSU) in a way that would not be
perceived as provocative by Washington or Beijing.
Nevertheless, local media widely portrayed Chen's
announcement as endorsing Lee's call to "Taiwanize" official
institutions. End Summary.

Changing the Name
--------------


2. (C) President Chen Shui-bian announced on December 5 that
Taiwan would change the name of its overseas offices,
government agencies, and State-Owned Enterprises (SOEs) from
"China" and "Taipei" to "Taiwan" by 2006. Chen told
reporters at a DPP press conference that the purpose of the
change was to avoid "confusion" abroad between "PRC" and
"ROC" institutions. Chen emphasized, however, that he would
not change the legal title of the country. Chen stated that
"our national title, the Republic of China, not only reflects
historical realities, it also represents the greatest
consensus within Taiwan society over our national identity."
Chen added that all of his previous pledges, including those
made during his May 20 Inaugural Address and October 10
National Day speech, would remain in force throughout his
term of office. Defending the limits he has placed on future
constitutional revisions, Chen stated that Taiwan needs a
constitutional reform plan that will improve governance and
meet Taiwan's current needs rather than a "debate over
ideology or verbal slogans."


3. (C) Following the president's speech, the Premier and
spokesmen for the DPP and MOFA clarified that the initiative
to change the name of Taiwan's overseas missions only
referred to offices in countries that do not recognize the
"Republic of China." The MOFA Spokesman noted that changing
the title of offices would only be done if approval was
secured from host governments. DPP Deputy Secretary General
Lee Ying-yuan told the Director that Chen himself echoed this
clarification during a campaign rally later in the evening.
Regarding SOEs, Executive Yuan (EY)
Minister-without-Portfolio Hsu Chih-hsiung announced that the
EY has already formulated a plan to change the English titles
for a number of state entities, including the "Central Bank
of China," "China Shipbuilding," and "China Steel."

Squeezed From Both Sides
--------------


4. (C) The president's press conference came hours before the
Taiwan Solidarity Union (TSU) and Pan-Blue alliance held
separate rallies in Taipei City (Note: The media and
organizers for both camps claimed turnout in the hundreds of
thousands, but AIT on-site observers estimated attendance at
no more than 20,000 for the TSU and 10,000 for the Pan-Blue
rally). Presidential Office Deputy Secretary General James
Huang told the Director that the press conference was
organized after the DPP canceled its planned December 4
"Protect Taiwan" rally due to a passing typhoon. Huang said
the DPP did not want to allow the other parties to monopolize
the headlines in the final weekend of campaigning.


5. (C) DPP Secretary General Chang Chun-hsiung told the
Director that Chen's December 5 comments were carefully
calibrated in advance. Chang said that the DPP feared that
if it remained silent, the December 5 name change rally would
allow the TSU to dominate the Pan-Green agenda and thus steal
votes from the DPP. At the same time, Chang asserted that
officials present at the meeting urged the president to
consider possible USG reaction to any statement regarding a
name change. In the end, Chang stated that Chen decided on
the approach of announcing the name change for overseas
offices and SOEs to appeal to the Pan-Green base while
reiterating his continued commitment to the "five no's" and
other pledges to reassure the United States. Chang added
that the name change initiative for foreign missions is not a
new policy, noting that Taipei requested such a change from
Japan two years ago. (Note: Taiwan has also sought to use
"Taiwan" in the name for the community center in Gaithersburg
built by TECRO Washington. End Note.)


6. (C) Chang said that the president recognized that this
approach would cost the DPP seats to the TSU in the December
11 legislative election, but decided to proceed anyway out of
consideration for USG concerns. Chang claimed that a DPP
poll done Sunday night showed the DPP losing two seats to the
TSU as a result of the TSU's December 5 rally, with no

SIPDIS
offsetting gain for the DPP among centrist voters. Chang
attributed the lack of movement among centrists to the
general lack of interest among non-partisan voters in the
December 11 election campaign. Chang said he was surprised
at the president's willingness to intentionally sacrifice
party interests for the sake of foreign policy. He also
praised the president for consulting with his advisors in
advance of his December 5 announcement. "During the last
election campaign, he never told anyone about his plans to
announce things like a referendum on a new constitution,"
Chang continued, "he even refused to tell (National Security
Council Secretary General) Chiou I-jen."

Comment: Domestic Driven Focus
--------------


7. (C) We do not doubt the DPP's claims that Chen's December
5 announcement was driven by domestic political
considerations. This explanation, however, makes it no less
troubling. This latest episode is yet another reminder of
the eroding political will in Taiwan to maintain the
cross-Strait status quo. There is one other disturbing
aspect to the weekend's developments. Previous rhetorical
provocations have been explained away as President Chen
extemporizing. In this case it is clear that both the DPP
and the EY have been planning this name change proposal for
some time.


8. (C) While the structure of Legislative Yuan (LY) elections
generally encourages both camps to move to the extremes, the
situation may not necessarily improve after December 11. It
is increasingly clear that the DPP sees Lee and his TSU as
the real potent opposition force and is content to ignore the
self-marginalized Pan-Blue alliance. An election that
results in the DPP reliant on the TSU for a majority, or
competing with the TSU for the hearts and votes of Pan-Green
supporters in future elections, may give Lee and his
associates even greater influence over the direction and
content of policy. This would leave the USG, as it has been
for more than a year, as the only effective force to balance
further moves away from the status quo.
PAAL