TAIWAN MAY DELAY BEEF IMPORT DECISION

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 004040 SIPDIS STATE PASS AIT/W AND USTR STATE FOR EAP/TC, USTR FOR WINTER AND WINELAND USDOC FOR 4420/USFCS/OCEA/EAP/LDROKER USDOC FOR 3132/USFCS/OIO/EAP/ADAVENPORT USDA/FAS FOR WETZEL, MIRELES AND TERPSTRA USDA/APHIS FOR DEHAVEN E.O. 12958: DECL: 06/03/2020 TAGS: ETRD BEXP TW SUBJECT: TAIWAN MAY DELAY BEEF IMPORT DECISION REF: A. 04 TAIPEI 3728 ¶B. 04 SECSTATE 243653 Classified By: AIT Director Douglas Paal, REASON 1.5 (b),(d) ¶1. (C) Summary. AIT/T has heard disturbing reports that Taiwan may be contemplating delaying a decision on reopening its market to beef imports because of upcoming elections. The October 3-4 visit of Ron DeHaven, Administrator of the Animal and Plant Health Inspection Service (APHIS) would be a good opportunity to reiterate U.S. interest in Taiwan following through on its science-based review of beef import policies. End Summary. Politics Influencing Beef Imports -------------- ¶2. (C) On September 26, 2005, Benjamin Liang, Director General of the Taiwan Economic and Cultural Relations Office told AIT/T Agriculture Chief that Taiwan may need to delay a decision on reopening its market to imports of U.S. beef because of the approaching election on December 3. Liang did not offer any further elaboration. Liang's suggestion is troubling because the Taiwan bureaucracy had already started its process to reopen the market and seemed to be moving forward quickly and appropriately. ¶3. (C) Following USDA Deputy U/S Lambert's visit to Taiwan to review in advance the epidemiological report on the most recent BSE case, the Bureau of Food Safety (BFS) in the Department of Health (DOH) submitted the official report to its Advisory Committee. The Committee has until October 10 to provide its response and BFS Director General Chen Lu-hong told AIT/T that he expects to be able to move forward shortly after October 10 to recommend to his minister that Taiwan's market be reopened. A further sign of smooth sailing was a noticeable absence of efforts by the Council of Agriculture to interfere in the bureaucratic process that clearly falls under the purview of DOH. Prior to Taiwan reopening its market in April, AIT had observed that the Council of Agriculture (COA) had repeatedly sought to stall the DOH review process. ¶4. (C) AIT Acting Director raised the beef issue with National Security Council Secretary General Chiou I-jen on September 28. The ADIR reviewed progress on the issue, noting that DOH is scheduled to issue a risk advisory report on October 10. He expressed hope that we can move forward rapidly to resolve the issue because we have heard some disturbing rumors that political considerations might cause delays. Chiou said he would talk to President Chen Shui-bian after he returns from Central America and the Caribbean and would also gain a better understanding of where DOH stands in the process. Chiou stressed that both Chen and he support reopening the beef market and that he is encouraged that DOH is considering the issue on a scientific basis. Chiou also acknowledged that the current atmosphere is highly politicized. ¶5. (C) AIT/T Econ Chief raised the beef issue with a variety of people this week, noting the disturbing rumors of politically-motivated delays in the process and the science-based approach that DOH has been carefully implementing. AIT/T met with DPP Legislator Tsai Ing-wen on September 28, with Ministry of Economic Affairs Vice Minister Steve Chen (Ruey-long) and Director General of the Board of Foreign Trade Franco Huang (Chih-peng) on September 29 and on the same day with Hu Sheng-cheng, Chairman of the Council on Economic Planning and Development. All four observed that the atmosphere in Taipei is highly politicized. Tsai said that the public perceives the beef issue to be a political one because the original decision to reopen was portrayed as a political decision. She said that with the Premier under sustained attack over a number of different issues recently, any decision by the Government, including reopening the beef market, will be analyzed from a political perspective. Chen noted that there is a small group of people willing to use any issue to attack the government and happy to use the beef issue as a tool to attack the government. Huang and Hu essentially echoed comments already made by Tsai and Chen. ¶6. (C) VM Chen observed that MOEA has no direct role in the beef import review process. He did, however, suggest that it would be easier for Taiwan to reopen its market once again if other countries in Asia were to reopen their markets. Chen also noted that recent press coverage of Deputy U/S Lambert's visit did not help the situation. He cited an article which reported on TSU Legislator Lai Hsin-yuan commenting that she had met with Lambert during his visit. Chen said that such reports made the situation more politically sensitive and thus more difficult for the government to resolve. (Note: Lai Hsin-yuan has been an outspoken critic of the government's beef import policy. She has attacked the government for failing to have a transparent process assuring the population that food imports are safe and secure. End note.) AIT/T Econ chief also had dinner with former Premier Vincent Siew September 29. Displaying his savvy knowledge of politics and business in Taiwan, Siew noted, as we were sitting down, that beef continues to be a problem for the U.S. He lamented that beef imports, like all other issues in Taiwan, had become entirely politicized. He complained that the ruling and opposition parties do not face issues directly and seek solutions. ¶7. (C) Comment: We believe that DOH, Chen Lu-hong in particular, is proceeding ahead with a rigorous, science-based review of Taiwan's beef import policy with an expectation that it will reopen the market. The current political environment is closely balanced between the Green and Blue camps. As we have seen on a number of other issues, including defense procurement, both parties try to avoid taking any initiative that might open them to criticism. In this environment, political levels of the government may well wish to avoid finalizing any such recommendation until after the election. DPP politicians would want to avoid handing an issue to the opposition that could potentially be exploited during the campaign for the December 3 mayoral and county magistrate elections. Ron DeHaven, Administrator of the Animal and Plant Health Inspection Service (APHIS) is visiting Taiwan October 3-4. This would be a good opportunity for the U.S. to more fully explore Taiwan's review of beef import policies and press Taiwan to continue to follow a science-based approach. End Comment. PAAL