MEDIA REACTION: Cross-Strait Relations

UNCLAS SECTION 01 OF 03 TAIPEI 002621

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: Taiwan dailies June 15 were dominated by the
Michael Jackson trial as well as the domestic issue of
taxation. The centrist, pro-status quo "China Times" carried
a banner headline on its front page that read: "In
Opposition To The Government's Plan To Tax The Rich, Foxconn
CEO Terry Guo Criticized The Government of Communism."


2. In terms of editorials and commentaries, three
editorials commented on Premier Frank Hsieh's plan to
authorize civilian organizations to carry out negotiations
with China. The pro-independence "Liberty Times," Taiwan's
largest daily, cautioned the government that three issues in
Premier Hsieh's plan compose a "poisonous apple" that would
hurt Taiwan in the long run. The pro-independence, English-
language "Taipei Times" also took a similar position, and
editorialized that the consequences of allowing Chinese
tourists to visit Taiwan might have negative consequences.
However, the centrist, pro-status quo "China Times" said in
its editorial that Premier Hsieh's announcement showed that
the government is finally attempting to regain power on
cross-Strait issues.


3. The limited circulation, pro-independence, English-
language "Taiwan News" editorialized that the appointment of
Chang Chun-hsiung as the new SEF chairman could offer a new
start on cross-Strait relations.


4. The limited-circulation, pro-unification, English-
language, "China Post" said in its editorial that the
passage of the U.S. arms procurement bill could strengthen
president Chen Shui-bian's will for Taiwan independence.
End summary.

A) "The Government Should Never Swallow The Poisonous Apple
Coated With Syrup"

The pro-independence "Liberty Times" [circulation:
800,000](06/15) editorialized:

". The government wants to carry out negotiations with China
regarding the issues that would facilitate cross-Strait
cargo flights, export of Taiwan agricultural products to
China, and permission for Chinese tourists to visit Taiwan.
The reasons that the government gives are in fact the same
as those who suggested moving Taiwan industries to China.
However, to sum up the lessons that Taiwan learned in the
past with regard to moving Taiwan industries to China, we
must candidly point out that even if there were some `minor
favors and forgiveness' in these policies, the impact on
Taiwan's overall development would be that Taiwan would have
only `short-term gains, but not long-term ones.' First,
facilitation of cross-Strait cargo would help Taiwan
merchants reduce their operating costs in China in the short
run. More Taiwan merchants, however, would move to China in
the long run. Second, when Taiwan agricultural products
initially enter the Chinese market, Taiwan fruit might enjoy
a glamorous time, but the long-term negative impact is that
Taiwan's agricultural techniques would flow to China, and
China would dump its cheap agricultural products in Taiwan.
As for the policy that allows Chinese tourists to visit
Taiwan, it might immediately help Taiwan's domestic tourism
market to prosper. In the long run, however, China would
control Taiwan's service industry in the way that China has
controlled Taiwan's manufacturing industry. Moreover,
Chinese tourists would frequently stay illegally and collect
intelligence. Opening Taiwan's market to Chinese tourists
would create a channel for Chinese stowaways and special
agents to enter Taiwan legally. To sum up, the three gifts
that China has sent KMT Chairman Lien Chan and PFP Chairman
James Soong are definitely not `great gifts,' but a
poisonous apple coated with syrup; the government should
never swallow it."

B) "The Mechanism of Double Authorization That Has Been Put
Aside For Two Years Would Finally Be Started" [PAS note:
double authorization refers to authorization from both the
government and the Mainland Affairs Council. The popular
understanding of this term is "re-entrusting".]

The centrist, pro-status quo, "China Times"[circulation:
600,000](06/15) editorialized:

". To some extent, the announcement of this policy [that
authorizes Taiwan civilian organizations to carry out
negotiations with Chinese counterparts regarding cross-
Strait cargo flights, the sale of Taiwan agricultural
products to China, and allowing Chinese tourists to visit
Taiwan] also shows that the Taiwan authorities are
stealthily adjusting the cross-Strait policy toward a
`pragmatic' direction. It is clear that if they do not
adjust their policy toward China, the Taiwan authorities
will sink themselves into a more passive situation regarding
their ability to lead cross-Strait affairs. .

"The announcement to initiate three mechanisms of double
authorization clearly indicates that the authorities have
finally learned that they have to retain the power to lead
cross-Strait affairs. ."

C) "There's More To Tourism Than Cash"

The limited circulation, pro-independence, English-language
"Taipei Times"[circulation: 30,000](06/15) editorialized:

". Contact with China is of course beneficial, especially in
the economic sense. But the key issue here is that China is
a country with a planned economy. Its private sector can be
manipulated by the government. Moreover, policy decisions
often depend on the whim of officials. This makes the risks
very significant.

". Although being open to China can generate tourism
revenue, these countries have also paid a high price in
other ways. Is this a burden that Taiwan wants to assume?
."

D) "New SEF Chairman Offers New Start"

The limited circulation, pro-independence, English-language
"Taiwan News"[circulation: 20,000](06/15) editorialized:

". The appointment of a new SEF chairman could offer a new
beginning for cross-Strait negotiations.

"Although President Chen does not accept the so-called
`consensus of 1992,' the president has repeatedly affirmed
his recognition of the outcomes of the October 1992 SEF-
ARATS meeting in Hong Kong and the opening for the
subsequent process of `practical talks' that the `Hong Kong
spirit' of setting aside the prickly issue of sovereignty
generated.

"Chen's position indicates that the DPP government will not
evade what the KMT had promised in the Hong Kong meeting,
but also that the DPP administration will not overly
misinterpret the outcome as a `consensus' and specifically
not as a `consensus' on any form of a `One China' principle.
.

"At best, we may be able to hope for a return to the
pragmatic spirit reflected in the discussions for lunar New
Year cross-Strait charter flights to resurface. .

"But our government mist also firmly uphold its core
principles and avoid unnecessary concessions that could be
seen as compromising our independent and equal status. .

"At this moment, and especially with Washington putting
pressure on PRC leaders to engage in dialogue with Taiwan's
elected government, Beijing authorities may be ready to
accept more positive proposals for boosting cross-Strait
exchanges.

"The DPP government also can test the waters by proposing
small but positive projects which can be accepted by the PRC
but which will also not undermine Taiwan's complaints about
anti-session law. Examples could include easing barriers
for the entry of PRC journalists or even businesspersons. ."

E) "Arms Procurement Issue Must Be Put Into Perspective"

The limited circulation, conservative, pro-unification,
English-language, "China Post" [circulation: 30,000](06/15)
editorialized:

". [T]here has been widespread public resentment toward the
procurement plan as a result of President Chen Shui-bian's
shameful maneuverings on the project both before and after
the 2004 election to gain political advantage at the expense
of his opponents.

"It also needs to be noted: Chen used the proposed weaponry
purchases, which he claimed were imperative to protect
Taiwan from the increasing PRC threat, to justify his push
for the conduct of an unprecedented referendum alongside the
presidential election. .

"Such being the case, the Washington figures' criticism of
the opposition parties' objections as a reflection of their
hostility toward president Chen himself was not only biased
and misleading. They also run the risk of interfering in
Taiwan's internal politics.

". [T]he real security risk now facing this island is
stemming from within Taiwan itself. Nowadays, the issue of
independence is no longer simply political advocacy. It has
become a real policy being pursued by a government headed by
hard-line politicians and officials.

"Under such circumstances, any new plan to increase defense
investment would amount to effort to render greater
protection of the independence movement. .

"If Washington really wants to defuse the cross-Strait
tension, it needs to act in a more effective way. Its
current policy does not seem to be helpful. One the one
hand, Washington maintains a One-China policy and does not
support Taiwan independence. But at the same time, it
allows itself to build a de facto military alliance with
Taipei, providing a virtual umbrella for the independence
cause."