Identifier
Created
Classification
Origin
05SANTODOMINGO4481
2005-10-03 11:09:00
CONFIDENTIAL
Embassy Santo Domingo
Cable title:  

TWO CHINAS IN THE DOMINICAN REPUBLIC: TAIWAN

Tags:  DR TW CH PREL ETRD EINV 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 SANTO DOMINGO 004481

SIPDIS

DEPT FOR WHA, WHA/CAR, WHA/EPSC, EAP, INR, EB/ESC/IEC/EPC;
NSC FOR SHANNON; USCINCSO ALSO FOR POLAD; TREASURY FOR
OASIA-MAUREEN WAFER; USDA FOR FAS; USDOC FOR
4322/ITA/MAC/WH/CARIBBEAN BASIN DIVISION; USDOC FOR
3134/ITA/USFCS/RD/WH; DHS FOR CIS-CARLOS ITURREGUI

E.O. 12958: DECL: 09/30/2015
TAGS: DR TW CH PREL ETRD EINV
SUBJECT: TWO CHINAS IN THE DOMINICAN REPUBLIC: TAIWAN
PRESIDENT'S VISIT


Classified By: Economic and Political Counselor Michael Meigs, for Reas
on 1.4(b) and (d).

1, (C) Summary: Taiwan President Chen's official visit to
the Dominican Republic September 23-24 has warmed bilateral
relations, according to Taipei's ambassador here. Chen and
President Fernandez announced their intention to begin
negotiation of a free trade agreement, and Chen promised
further assistance for high-technology industrial training.
Favorable press coverage prompted the local PRC commercial
representative to arrange media attention for PRC events.
For now the Fernandez administration appears to be content to
let the two Chinas compete in their offers and appears to be
in no hurry to abandon ties to Taiwan. End summary.


2. (C) John Chi-Tai Feng, Taiwan,s ambassador to the
Dominican Republic, who is often bluntly pessimistic in
assessing his chances of deterring the PRC,s "big offensive"
to take away one of his country,s last bastions of
recognition, was enthusiastic in remarks to political officer
September 29. President Chen Shui-Bian and President Leonel
Fernandez had hit it off well during Chen,s official visit
here September 23-24. The "coolness" that the ambassador had
felt in bilateral relations during Fernandez,s first year in
office "warmed up" during their personal meeting September

23. "I feel it," he exulted. His only regret was that Chen
and his 130-person traveling party would make a refueling
stop in Santo Domingo late in the day, after a swing through
Central America. "They all have to de-plane," he grumbled,
only half in jest.

- - - - - - - - - - - - - - - - - -
CAFTA-DR and Potential Investments
- - - - - - - - - - - - - - - - - -


3. (C) The Foreign Ministry,s Asia director, in more
restrained desk-officer style, said the Dominican Government
had reaffirmed its commitment to relations with Taiwan,

including support for Taiwan to become a UN member state and
observer to the World Health Organization. The splashiest
announcement by the two presidents was that negotiations
would soon begin on a bilateral free-trade agreement,
pursuant to a letter of intention signed last February.
Chen, With a press encounter at national daily "Hoy," which
had previously been critical of the CAFTA-DR free-trade
agreement with the United States, Chen achieved an
unprecedented headline on that newspaper,s front page:
"Taiwan President Believes CAFTA will strengthen Dominican
Republic." Feng said that MFA Under Secretary for Economic
Affairs Juan Guiliani Cury would soon travel to Taipei for
the first round of talks, with the goal of signing an FTA in
January 2007.


4. (C) President Fernandez had repeatedly put off a promised
trip to Taiwan but Feng said Fernandez has renewed his
commitment to travel in January. President Chen for his part
visited the Technological Institute of the Americas (ITLA) --
a high-tech industrial training facility assisted and staffed
by Taipei -- and promised to expand support for this project,
part of a "Cyber Park" planned by Fernandez since his first
administration in the late 1990s. The president of Stevens
Institute of Technology in New Jersey was on hand to announce
additional support for ITLA. According to Feng, five or six
big Taiwanese entrepreneurs accompanying Chen expressed more
interest in investing as a result of the recent Dominican
ratification of DR-CAFTA, although no deals were concluded.


5. (U) The local press was overwhelmingly positive, with
front-page coverage and photo spreads. The Taiwan Embassy
counted 68 newspaper articles, including 2 editorials and 2
op-ed commentaries, "all positive." Local TV ran more than
170 clips, and radio mentioned the topic over 110 times.

- - - - - - - -
PRC Rep Reacts
- - - - - - - -


6. (SBU) All this attention to Taiwan provoked PRC commercial
rep to the Dominican Republic Cai Weiquan to action. He
appeared at least twice on television this week and on
September 29 published a an op-ed in the middle of the
editorial page of leading national paper Listn Diario, on
"China and the U.S." Cai spent one column reviewing, in a
diplomatic tone, China,s position on trade disputes with the
United States and two columns rehashing the PRC line on "the
problem of Taiwan." Then he advocated UN Security Council
reform, which he said would offer better rotational
opportunities for "small and medium countries like the
Dominican Republic."


7. (C) The PRC has continued to bait the hook of diplomatic
recognition. According to the Taiwan ambassador, the latest
proposal being dangled here by the PRC is a USD 100 million
pickup truck assembly plant. "But there are always
conditions for this and other PRC investment offers," noted
Feng, "That means diplomatic relations."

- - - - - - - - - - - - - -
Foreign Minister Skeptical
- - - - - - - - - - - - - -


8. (C) Dominican Foreign Minister Carlos Morales Troncoso
missed the Chen visit, spending September 23-25 at a Wilton
Park Conference in the United Kingdom. There he heard Deputy
Director of the Institute of Latin American Studies of the
Chinese Academy of Sciences Jiang Shixue, deliver a paper
entitled, "Big Countries and Small Countries Can Be Brothers:
China,s Relations with the Caribbean." In it, Jiang
characterized Taiwan,s policy in the region as "dollar
diplomacy."


9. (C) "Both Chinas do that," retorted Morales Troncoso in
conversation with the Ambassador September 28. "They,re
both corrupt, and their cash flows in election campaigns to
political parties and candidates."

- - - -
Comment
- - - -


10. (C) Like previous Dominican presidents, Fernandez appears
to be content to let the two Chinas compete in offering
goodies to this developing island nation. The Fernandez
administration appears to be in no hurry to cut its
traditional ties to Taiwan. The foreign minister's
dismissive attitude, though not necessarily shared by the
President, suggests he will provide an additional measure of
resistance to Beijing's offers.
Hertell