MEDIA REACTION: CROSS-STRAIT RELATIONS

UNCLAS SECTION 01 OF 02 TAIPEI 001554

SIPDIS

DEPARTMENT FOR INR/R/MR, EAP/RSP/TC, EAP/PA, EAP/PD -
ROBERT PALLADINO
DEPARTMENT PASS AIT/WASHINGTON

E.O. 12958: N/A
TAGS: OPRC KMDR KPAO TW
SUBJECT: MEDIA REACTION: CROSS-STRAIT RELATIONS



1. Summary: The coverage of the major Taipei dailies
March 30 focused on KMT Vice Chairman Chiang Pin-kun's
visit to China aimed at promoting cross-Strait
relations. The major Chinese-language newspapers ran,
either on their front pages or one of the first few
inside pages, the news that President Chen Shui-bian
blasted Chiang's visit and called the "peace-talks"
between the KMT and the Chinese Communist Party as a
move to turn back the clock. The pro-unification
"United Daily News," however, said on its front page
that President Chen and Premier Frank Hsieh held
different views of Chiang's visit -- as Hsieh said he
would give his blessing to the visit if the
reconciliation between the KMT and CCP would help
Taiwan. Taiwan's largest daily, the pro-independence
"Liberty Times," ran a banner headline on its front
page that read: "Chiang Pin-kun visits China but drops
the `Republic'"; the paper criticized Chiang for
failing to protest when China deliberately omitted the
word "Republic" when referring to the "Republic of
China" in a message drafted by the KMT meant to be
offered at a ceremony. The centrist "China Times"
carried a page-two story with the headline: "[KMT
Chairman] Lien Chan is expected to visit mainland China
in mid-May."


2. A "United Daily News" editorial discussed Taiwan's
situation in the aftermath of the massive March 26
demonstration, and noted those who push for Taiwan
independence dare not really declare independence; in
addition, the editorial stressed that Taiwan's
businesses are moving to China even without the three
links. An op-ed piece in the limited-circulation, pro-
independence English-language "Taipei Times" said the
next few months would be a real test for cross-Strait
relations, and how Taiwan adjusts its cross-Strait
policies while making the best use of international
leverage will determine the outcome of the tough
battle. End summary.

A) "Spells Cast on Taiwan: Those Who Push for Taiwan
Independence Do Not Dare to Really Declare
Independence; [Taiwan Businesses] Keep on Moving
Westbound without the Three Links"

The pro-unification "United Daily News" [circulation:
600,000] editorialized (3/30):

". An objective view of both Taiwan's domestic
situation and the international community situation
shows that [the road to] Taiwan independence is
`absolutely a dead end' - something that cannot be
accomplished. But the island's political
predestination seems to be that even though both
Washington and Beijing have drawn a red line [regarding
Taiwan independence] and even though the Taiwan
independence supporters realize that they cannot cross
the red line, they still insist on pushing for
independence movements within the red line [area]
anyway. Yes, they cannot cross the red line even when
they continue pushing; all they achieve is putting
Taiwan in a state of division, deconstructing and
exhausting [Taiwan] without getting it anywhere.

"As for [Taiwan's businesses] moving westbound without
the three direct links [across the Taiwan Strait],
Taiwan's reliance on mainland China's economy has
continually increased even in the face of the calls for
the `no haste, less speed' [policy] and Taiwan's name-
change and constitutional reform plan. [Taiwan
business tycoon] Hsu Wen-lung's statement that `I think
Taiwan's economic development cannot be separated from
that of mainland China's' clearly indicates that such a
westbound movement of Taiwan's industry is already an
inevitable trend. .

"Those who push for Taiwan independence do not dare to
really declare independence, but what they do has
continually increased the hostility between both sides
of the Taiwan Strait and has split the island even
further. Taiwan's businesses are moving westbound
without the three links, and Taiwan has failed to
create a mechanism to keep the root of its businesses
in Taiwan. [We want to] ask President Chen if he wants
to claim this as [being part of] his administrative
performance, and also, is this the political and
economic routes of our country that was upheld during
the mass rally on March 26?"

B) "Next Steps Crucial in Cross-Strait Stand-off"

Liu Kuan-teh, a Taipei-based political commentator,
noted in the pro-independence, English-language "Taipei
Times" [circulation: 30,000] (3/30):

". After the parade, the month-long battle between
Taiwan and China over Beijing's legislation has entered
into the next stage - an even more decisive struggle
about how to forge an institutionalized and peace-
oriented cross-strait interaction. .

"Chen [Shui-bian] must redouble his efforts to conduct
intensive and frank communication with the US and other
major countries to reiterate Taiwan's stance of
`reconciliation without flinching, standing firm yet
avoiding confrontation.' Moreover, maintaining candid
and frequent communication will help Taiwan's
government learn what is on the minds of the leaders of
the People's Republic of China (PRC).

"Washington's role remains significant and crucial to
Taiwan's next steps. Various reports have hinted that
the US administration of President George W. Bush might
talk Beijing into accepting Taipei's bid for observer
status in the World Health Assembly. In that case,
Taiwan should carefully consider whether to accept
whatever Washington offers.

"Washington's next step also must be to determine the
`red lines' of the PRC authorities and define the
`three conditions' under which Beijing would use `non-
peaceful means' to try to take over Taiwan.

"The next few months will be the real test for cross-
strait relations. Taiwan's strategy of `self-
restraint' changed its image and put the all in China's
court. Nevertheless, how Taiwan adjusts its cross-
strait policy while making the best use of
international leverage will determine the final victory
in this tough battle."

PAAL