Identifier
Created
Classification
Origin
05TAIPEI312
2005-01-25 09:39:00
CONFIDENTIAL
American Institute Taiwan, Taipei
Cable title:  

FRANK HSIEH APPOINTED PREMIER

Tags:  PREL PGOV TW 
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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 TAIPEI 000312 

SIPDIS

STATE PASS AIT/W

E.O. 12958: DECL: 10/10/2013
TAGS: PREL PGOV TW
SUBJECT: FRANK HSIEH APPOINTED PREMIER

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

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 000312

SIPDIS

STATE PASS AIT/W

E.O. 12958: DECL: 10/10/2013
TAGS: PREL PGOV TW
SUBJECT: FRANK HSIEH APPOINTED PREMIER

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


1. (C) Summary: President Chen Shui-bian announced January 25
the appointment of Kaohsiung Mayor Frank Hsieh (Changting) to
head the Executive Yuan (EY). Chen said that Hsieh's cabinet
would bring stability to Taiwan's political scene by
emphasizing cross-partisan consultations. Hsieh echoed this
theme, promising to create a "new model" in Taiwan politics.
At the same press conference, Chen announced the appointment
of outgoing Premier Yu Shyi-kun as Presidential Office
Secretary General, a position Yu held prior to the

SIPDIS
Premiership. Officials say that Hsieh's new cabinet may not
be formalized for several more days. Few major changes are
expected in the cabinet line-up, particularly among the
national security agencies. Hsieh is likely to be a more
competent manager than his predecessor, but his effectiveness
may depend on Chen's willingness to give Hsieh real authority
to run the cabinet. End Summary.

Premier Hsieh
--------------


2. (SBU) President Chen Shui-bian announced on January 25 his
decision to appoint Kaohsiung Mayor Frank Hsieh as the next
Premier, effective February 1. Chen praised Hsieh's
administrative track record and ability to work across
partisan lines. Chen said the new cabinet would focus on
political stability and "consultations" with the opposition
Pan-Blue alliance. He also boasted that Hsieh's appointment
would bring geographic balance to Taiwan politics, which Chen
claimed would no longer be characterized by "Taipei looking
down from the heavens at Taiwan."


3. (C) Hsieh focused on similar themes in his acceptance
speech, pledging to create a "new model" for relations
between the ruling and opposition camps. National Security
Council (NSC) Deputy Secretary General Henry Ke told AIT
January 25 that there were high expectations over Hsieh's
ability to work with the opposition-controlled Legislative
Yuan (LY),especially on passage of the USD 18 billion
Special Defense Procurement Budget. Ke admitted that the Yu
cabinet's confrontational approach to the LY contributed to
legislative gridlock over the past several years. While
Hsieh left the door open to including Pan-Blue figures in the

cabinet, there is little expectation that posts in the new EY
will be given to opposition figures.

Hsieh Cabinet: Old Wine in a New Bottle?
--------------


4. (C) Hsieh did not immediately announce his new cabinet
team, but Democratic Progressive Party (DPP) officials tell
AIT that the Hsieh cabinet is unlikely to contain many new
faces. EY Research, Development, and Evaluation Council
(RDEC) Vice Minister Chen Chun-lin told AIT that there may
well be a two-stage cabinet reshuffle process. The first
round, to be announced before February 1, is likely to
involve the departure of those figures closest to outgoing
Premier Yu, including EY Secretary General Arthur Iap
(Comment: Iap, a cross-Strait hard-liner, used his EY
position to challenge the NSC on foreign policy. End
Comment.). The second round, likely in March, would involve
those current cabinet members slated to run for office in the
December local magistrate/mayor election, including
Government Information Office (GIO) Director Lin Chia-lung
and Mainland Affairs Council (MAC) Senior Vice Chairman Chiu
Tai-san.


5. (C) Presidential confidante and Hakka Affairs Council
(HAC) Minister Luo Wen-chia told AIT that President Chen will
give Hsieh little choice over either round of cabinet
personnel selections. Luo said that Chen is focused on
keeping Hsieh and DPP Chairman-designate Su Tseng-chang from
gaining too much personal political momentum ahead of their
expected showdown for the 2008 DPP presidential nomination.
Luo added that Chen also plans to retain complete control
over the foreign and cross-Strait policy apparatus.

Other Changes
--------------


6. (C) Chen also used his January 25 press conference to
announce his decision to appoint outgoing Premier Yu as his
new Presidential Office Secretary General. Yu held the same
job before his move to the EY in 2002. HAC's Luo said that
the Yu decision was mainly the result of a lack of
alternatives. "If we had appointed someone with less
seniority, it would be seen as an expansion in the field of
possible presidential contenders," Luo added.

Comment: A New Beginning?
--------------


7. (C) With key posts such as the Vice Premier still
unfilled, it may be premature to assess how effective the
Hsieh cabinet will be in advancing the Chen administration's
legislative and economic agendas. In his past interactions
with AIT, Hsieh has proven to be clear-headed on policy and
non-ideological (by DPP standards) on sensitive issues of
sovereignty and cross-Strait relations (Septel). Perhaps the
most critical question will be whether Chen will allow Hsieh
enough authority to effectively lead his cabinet and engage
the opposition in the LY. Early indications are not
encouraging. However, at the very least, Hsieh will be an
improvement over the bumbling and insecure Yu Shyi-kun, whose
tenure was marked by legislative gridlock and policy drift.
PAAL