NO PROGRESS ON CROSS-PARTY RECONCILIATION

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 002310

SIPDIS

STATE PASS AIT/W

E.O. 12958: DECL: 05/25/2015
TAGS: PGOV PREL TW
SUBJECT: NO PROGRESS ON CROSS-PARTY RECONCILIATION

REF: TAIPEI 02167

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


1. (C) Summary: Legislative Yuan (LY) President Wang
Jin-pyng told AIT on May 25 that he has seen no improvement
on the state of cross-party relations since his May 13
meeting with the AIT Director. Wang said that he has met
with People First Party (PFP) Chairman James Soong since the
latter returned from the PRC, but Soong adamantly held to his
position that there would be no negotiation on the Special
Defense Procurement Budget until Chen Shui-bian publicly
apologies for his criticisms of Soong. While the Pan-Blue
controlled LY Procedure Committee once again on May 24
blocked the Special Defense Procurement Budget from being
placed on the agenda, Wang told AIT that he is working
extremely hard to achieve cross-party consensus on the
possibility for a extraordinary summer session, during which
time the LY would have another chance to consider the Special
Budget. Wang also said that he has not seen any progress on
negotiations for a meeting between President Chen and KMT
Chairman Lien Chan. While pointing out that negotiations
have been suspended pending Presidential Office Secretary
General Yu Shyi-kun's return from the U.S., Wang said that he
did not believe the DPP is interested in such a meeting. End
Summary.

For Want of an Apology
--------------


2. (C) LY President Wang Jin-pyng told AIT on May 25 that he
has seen no progress on the prospects for cross-party
reconciliation in Taiwan since May 13, when he met with the
AIT Director (Reftel). Wang reported that he met with PFP
Chairman James Soong after Soong returned from the PRC. Wang
said that Soong continues to hold adamantly to the PFP public
statement that there will be no negotiations on any
legislation until President Chen Shui-bian apologizes for his
accusation that Soong had met with PRC Taiwan Affairs Office
Director Chen Yunlin in the United States. PFP Legislator
Daniel Hwang (Yih-jiau) confirmed to AIT that a public
apology by President Chen is necessary for future DPP-PFP
cooperation. Hwang insisted that President Chen must give
the PFP some sort of face-saving path back to the negotiation
table.


3. (C) In the May 24 LY Procedure Committee, KMT and PFP once
again blocked the Special Defense Procurement Budget from
being placed on the LY agenda for the current session ending
at the month-end. Wang told AIT that he had anticipated this
result because there has to date been no actual cross-party
negotiation on the Special Budget. He said, however, that he
is working extremely hard to gain consensus approval for an
extraordinary session this summer, so there is a possibility
the LY could still consider the Special Budget by mid-year.
PFP Legislator Hwang, however, told AIT that the PFP opposes
a summer session, arguing that the Pan-Green has pushed for
an extraordinary session every year, thus negating the
special nature of such sessions.

Post-PRC Visit Chen-Lien Meeting?
--------------


4. (C) Wang told AIT that he has not seen any progress on
arranging a meeting between President Chen and KMT Chairman
Lien Chan. Explaining that negotiations for a meeting would
normally be conducted by KMT Secretary General Lin Fong-cheng
and Presidential Office Secretary General Yu Shyi-kun, Wang
said all such negotiations have been suspended pending Yu's
return from his May 15-24 visit to the United States. Wang
reiterated his May 13 observation to the Director that,
despite his public statements that he has not ruled out the
possibility of a meeting with President Chen, privately,
Chairman Lien still has very negative feelings toward Chen.
Lien, Wang said, still refuses to call Chen "President," or
even use Chen's popular nickname "A-bian." He noted that
during Lien's telephone conversation with Chen prior to
Lien's departure for Mainland China, Lien addressed Chen in
Taiwanese as "Brother Shui-bian," what one would call a
fellow politician.


5. (C) Wang, however, was doubtful that Chen Shui-bian
himself is really interested in meeting Lien. Chen
understands perfectly well, Wang explained, Lien's
motivations for wanting to see him -- to ask the DPP
government to implement the KMT achievements from its PRC
visit. Rather, Wang continued, Chen may have concluded that
he has no incentive to meet Lien. Wang described Chen as a
narrow-minded politician who cannot see beyond his own
self-interest for the good of Taiwan. Wang also dismissed as
"meaningless" Premier Frank Hsieh's May 20 statement
welcoming the PRC decision to allow Mainland Chinese tourists
to visit Taiwan and proclaiming Taiwan's intention to allow
daily 1,000 Mainland Chinese visitors for ten-day tours.
Rather, Wang argued, the DPP will insist on official
government negotiations on the PRC proposal, a condition the
DPP knows will be an automatic deal breaker for the PRC. In
addition, Wang claimed the DPP government has been
obstructing KMT efforts to send members of the Provincial
Farmer's Association to the PRC for further talks on the
PRC's proposed tariff-free import of Taiwan fruit.
PAAL