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