Identifier
Created
Classification
Origin
05TAIPEI286
2005-01-25 04:39:00
UNCLASSIFIED
American Institute Taiwan, Taipei
Cable title:  

CONGRESSMAN LANTOS PRESSURES TAIPEI ON DEFENSE

Tags:  PREL PGOV TW 
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UNCLAS SECTION 01 OF 02 TAIPEI 000286 

SIPDIS

STATE PASS AIT/W

E.O. 12958: N/A
TAGS: PREL PGOV TW
SUBJECT: CONGRESSMAN LANTOS PRESSURES TAIPEI ON DEFENSE
SPENDING


UNCLAS SECTION 01 OF 02 TAIPEI 000286

SIPDIS

STATE PASS AIT/W

E.O. 12958: N/A
TAGS: PREL PGOV TW
SUBJECT: CONGRESSMAN LANTOS PRESSURES TAIPEI ON DEFENSE
SPENDING



1. (SBU) Summary. House International Relations Committee
(HIRC) Minority Ranking Member Tom Lantos (D-CA) visited
Taiwan from January 15-18 to receive a human rights award
from President Chen Shui-bian and to meet with high-level
Taiwan officials. In meetings with President Chen, Vice
President Annette Lu, Legislative Yuan (LY) Speaker Wang
Jin-pyng, Congressman Lantos stressed the importance of
passing the USD 18 billion Special Defense Procurement Budget
and increasing overall defense spending, which Lantos pointed
out had fallen to 2.5 percent of GDP. Lantos also told
Taiwan officials that Members of Congress and the American
public would not likely support the deployment of American
military forces to assist Taiwan if Taipei refuses to do its
"fair share" to protect itself in the wake of the PRC's
growing defense budget. End summary.

President Chen Pledges Defense Upgrades
--------------


2. (SBU) Following a January 17 ceremony to honor the
Congressman's contribution to international human rights,
Rep. Tom Lantos exchanged views with President Chen Shui-bian
on U.S.-Taiwan relations and Taiwan's defense modernization
efforts. President Chen told Lantos that he and his
administration remain very concerned about defending the
peace in the Taiwan Strait. Chen added that this was
Taiwan's responsibility and that Taipei is trying to improve
its defenses to counter the PRC's growing threat. He told
Lantos that passing the Special Defense Procurement Budget is
one of the key goals of his administration. Chen maintained
that opposition in the LY has blocked his efforts. However,
Chen noted that with the December 11 LY election over, he is
optimistic that his government and the opposition can
complete work on the budget within the first half of this
year. Chen expressed particular optimism over prospects for
cooperation from opposition leader James Soong, whose People
First Party (PFP) had repeatedly blocked action in recent
months.

Vice Presidential Dinner
--------------


3. (SBU) Rep. Lantos, accompanied by Communications Director
Lynne Weil and HIRC Democratic Deputy Staff Director Peter
Yeo, expanded on the defense modernization theme during a
January 16 dinner hosted by Vice President Annette Lu.
Congressman Lantos noted that a recent article in the
Economist magazine that showed Taiwan's defense spending had

fallen to 2.5 percent of GDP during a period when Beijing's
defense spending had continued to rise. While Lantos
asserted this was not news to him, the article would
undoubtedly cause concern among Members of Congress and the
American people that Taipei was not doing its fair share on
defense issues, which would prove to be problematic for
Taiwan in the future. Lantos also told Vice President Lu and
other guests that Taiwan's defense spending was jeopardizing
Taiwan's national security. He added that inaction on
defense preparedness was also damaging Taiwan's positive
perception among the American people. The Congressman stated
that as long as defense spending continued to fall, the
American people would not support the deployment of American
military forces to Taiwan, especially since U.S. forces were
so focused on the global war on terror and Iraq.


4. (SBU) Vice President Lu acknowledged the problem and said
that she and President Chen had worked hard to get the USD 18
billion Special Defense Procurement Budget passed, but their
efforts have been blocked by the opposition in the LY.
National Security Council (NSC) Deputy Secretary General
Parris Chang, who joined the dinner, added that since the LY
election is over, the opposition is likely to be more
cooperative on the budget, but is likely to argue that the
price of the weapons being offered by Washington is still too
high. Chang also seconded Lantos' assessment of Taiwan's
growing image problem, and said that Taiwan must do more on
the public diplomacy front. He argued that the PRC had
effectively portrayed Taiwan as the main trouble maker on the
cross-Strait issue. Chang added that Taiwan wanted to do
more to counter Beijing and planned to embark on a new
campaign in the U.S. and elsewhere to counter Taipei's
sagging reputation abroad.

Meeting with LY Chair Wang Jin-Pyng
--------------


5. (SBU) In a separate January 17 meeting with KMT LY Speaker
Wang Jin-pyng, Rep. Lantos warned against playing partisan
politics with Taiwan's defense requirements. He said
Congress and the American people will not be happy about
Taiwan's falling defense spending from 5 percent to 2.5
percent of GDP in recent years. Lantos further added that
this fact points to a dangerous situation for Taiwan and he
directly asked Wang why political disputes in the LY are
preventing Taiwan from devoting an adequate amount to defense
spending. Lantos emphasized to Wang that many Americans
believe the nation's hands are full with the global war on
terror, Iraq, and Afghanistan so other countries in the
region must do their fair share with defense spending. He
told Wang that the American people are not going to support
Taiwan if the LY does not rectify this situation soon and
work together to significantly increase Taiwan defense
expenditures.


6. (SBU) Wang responded that Taiwan is committed to its
national defense, and asserted that Taiwan will work hard to
show other nations that Taipei has a strong will to defend
itself. However, he lamented that Taiwan is facing many
other budgetary pressures such as education and social
welfare spending. Wang added that Taiwan's defense spending
as a percentage of GDP is one of the highest in the region.
He also stated that the defense budget is actually higher
than 2.5 percent of GDP because of special budgets and other
defense related programs funded from off-budget accounts.
Wang said that the opposition is in favor of the Special
Budget, but only if the systems are offered at a fair price
by the U.S. Congressman Lantos countered that the weapons
offered by the U.S. are the best in the world and that the
price will be the same as offered to any other country.


7. (SBU) Wang noted that, in addition to military threats,
Beijing is attempting to isolate Taiwan in the international
trade arena. Wang asserted that Taiwan desperately needs a
bilateral Free Trade Agreement (FTA) with Washington to
protect itself from economic marginalization. Lantos
responded that passage of the Special Budget would give
Congress a more favorable view of Taiwan with other issues,
including a future FTA.


8. (U) Congressman Lantos has approved this message.
PAAL