TAIWAN STRUGGLING TO IMPROVE ROK TIES

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 004441

SIPDIS

STATE PASS AIT/WASHINGTON

E.O. 12958: DECL: 11/01/2015
TAGS: PREL PGOV ASEC TW
SUBJECT: TAIWAN STRUGGLING TO IMPROVE ROK TIES

REF: TAIPEI 4190

Classified By: AIT Acting Director Dave Keegan, Reason 1.4 (b/d)


1. (C) Summary: Taiwan officials are frustrated by the
Republic of Korea's (ROK) close ties to the PRC. They assert
that Taipei's efforts to engage Seoul have been spurned
because of PRC pressure and the ROK's goal of rapprochement
with Pyongyang. ROK diplomats in Taipei complain that Taiwan
President Chen Shui-bian's tactic of publicizing foreign
policy initiatives for domestic gain has compromised ROK
efforts to maintain a low profile and avoid friction with
Beijing. Economically, Taiwan-ROK ties are improving and
tourism is on the rise since direct air links were
reestablished in 2004, but Taipei is still facing a trade
deficit with Seoul. End summary.

Political Ties Still Strained
--------------


2. (C) Taipei's relationship with the ROK remains strained
since diplomatic ties were severed in 1992. (Note: When Seoul
severed diplomatic ties with Taiwan, Taipei felt betrayed,
and bitter feelings ensued between both sides for several
years. End note). Taiwan National Security Council (NSC)
Senior Researcher for Korea and Japan Chen Pei-yuan told AIT
that Taipei has tried several initiatives to engage South
Korea to warm bilateral ties, but has been rebuffed by Seoul.
Chen said under the current circumstances, it will be
difficult for Taipei to make progress particularly since only
minor Taiwan government officials can officially visit the
ROK. Taiwan Ministry of Foreign Affairs (MOFA) Chief for
Korean and Japanese Affairs Huang Shue-I told AIT that while
economic ties have improved, political relations between
Taipei and Seoul were "almost non-existent."

Seoul Focused on the PRC
--------------


3. (C) Taiwan NSC and MOFA officials assert that the ROK's
top priority is maintaining good ties with Beijing and thus,
Seoul is susceptible to PRC pressure. MOFA's Huang said that
the ROK is wary of Taiwan because Seoul wants to focus its
economic ties on the growing PRC market and needs good
relations with the PRC to ensure that Beijing will continue
to use its influence with North Korea to moderate Pyongyang.
The ROK Representative Office in Taipei Political Chief Lee
Hai-kwang argued that Seoul must maintain its distance from
Taiwan because there is a limit to what the ROK can do with
Taiwan. He added that "we have to be cautious because of the
importance of Beijing to Korean economic and political
interests."

And Frustrated Over Taiwan's Foreign Policy
--------------


4. (C) The ROK is also frustrated with Taiwan President
Chen's practice of publicizing foreign policy initiatives for
domestic audiences in Taiwan. The ROK's Lee maintained that
Taiwan's practice of using the press to announce foreign
policy initiatives rather than seeking more subtle channels
of communication creates great difficulties for Seoul and has
only served to exacerbate Taiwan-ROK ties. Lee explained
that Taiwan's use of the press often escalates minor events
into larger controversies, which in turn puts the ROK in a
difficult situation with the PRC. He mused that President
Chen's diplomatic practices are counterproductive and further
isolate Taiwan from Seoul and other potentially friendly
governments in Asia. Lee added that Taiwan is promoting
former ROK President Kim Young-sam's visit to Taiwan (October
31-November 3),but he assured AIT that Kim's visit is not
politically significant and noted that Kim visited Taiwan
last year.

APEC Controversy Highlights Strains
--------------


5. (C) Lee pointed to Taiwan's use of the media to announce
its APEC representative as an example of this ineffective
strategy and why Seoul must be cautious towards Taiwan
(reftel). (Note: President Chen announced to the press in
July - before consulting Seoul or Beijing - that he intended
to represent Taipei at the November APEC leaders' meeting in
Pusan and then announced in October he intended to send LY
speaker Wang Jing-pyng. End note). Lee said the APEC
controversy was compounded by Taiwan's use of the media for
dialogue instead of conveying messages through direct
channels, which has put the ROK in an awkward position. Lee
said Seoul is trying to play the middle ground, but when the
issue is forced Seoul will of course have to support Beijing.
Taiwan officials have been disappointed with the lack of
support shown by Seoul and NSC's Chen told AIT that the APEC
incident shows that the ROK is afraid of Beijing.

Economic Ties Growing, But Challenges Remain
--------------


6. (C) Despite the political strains, economic cooperation
between Seoul and Taipei continues to improve. MOFA's Huang
said that Taiwan-ROK trade has expanded and the ROK is now
Taipei's 4th largest export market. He also noted that after
direct air-links were reestablished in 2004, tourism has
increased - 150,000 visitors annually from the ROK and
300,000 from Taiwan. While NSC's Chen admitted economic ties
are growing, he pointed to the serious trade deficit, which
is an issue of great concern to Taiwan. He said Taiwan has
sought bilateral trade talks, but has had little success in
closing the trade gap. Chen added that most ROK companies
are large conglomerates focused on the large PRC market,
while most Taiwan companies are small-or medium-sized firms,
which are less attractive for trade and investment to ROK
firms. Chen told AIT that the situation is difficult and
many challenges remain for Taiwan's economic relations with
Seoul.

Comment: Little Likely to Change
--------------


7. (C) Taiwan MOFA and NSC officials complained loudly to AIT
about Beijing's influence over the ROK. They offer, however,
little realistic expectation that the Taiwan president can be
dissuaded from using a "public" approach for Taiwan's foreign
policy, which has only alienated governments in the region.
Taipei would be better served to use more subtle and discreet
diplomacy - as it proved it can do with the UAE in September
- with Seoul and other governments in Asia. The challenge
will be to use such discretion in pursuit of strategic gain
rather than presidential photo-ops.
Keegan