TAIWAN CONTINUES EFFORTS TO PROMOTE

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 004550

SIPDIS

STATE PASS AIT/WASHINGTON

E.O. 12958: DECL: 11/05/2015
TAGS: PREL PGOV TW
SUBJECT: TAIWAN CONTINUES EFFORTS TO PROMOTE
TAIWAN-JAPAN-US COOPERATION

REF: STATE 199897

Classified By: AIT Director Douglas Paal, Reason 1.4 (b/d)


1. (C) Summary: Taiwan President Chen Shui-bian's government
is continuing efforts to enhance Taiwan-Japan-US cooperation
and views the rise in Tokyo-Beijing tensions as an
opportunity to strengthen ties with Japan and the US in order
to counter the PRC. AIT attended a recent Taiwan government
sponsored conference designed to encourage discussions among
Taiwan, Japan, and the US on closer security and economic
cooperation in response to the PRC's growing influence in
Asia. Taiwan participants argued that Taipei should play a
more active role in the US-Japan security framework and
asserted that Taiwan needs additional security guarantees
from Tokyo and Washington to help reverse the domestic
political division and uncertainty plaguing Taiwan over
cross-Strait policies. End summary.

Conference Highlights Continuing Push for Better Ties
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2. (C) A recent Taiwan government sponsored conference
entitled "The Taiwan-US-Japan Trilateral Strategic Dialogue"
was another example of the continuing push by the Chen
administration to strengthen Taiwan's relationship with Japan
and the US. The conference was organized by the pro-green
Taiwan Thinktank and attended by high-level Taiwan government
officials as well as former US and Japanese officials. The
event was a top priority for the Chen administration and
meetings were closed to the press. Presidential Office
Secretary-General Yu Shyi-kun delivered the opening remarks

SIPDIS
and stressed that the Chen administration is committed to
serving as a reliable partner with Japan and the US to ensure
security and stability in the Taiwan Strait. He called for
further integration of military, political, and economic
cooperation among the three governments to help Taipei combat
new challenges -- a clear reference to the PRC -- in the
Asia-Pacific region.


3. (C) Taipei also hopes that recent tensions between Japan
and the PRC will translate into closer ties with Tokyo. In
his meeting with conference participants, President Chen
called for closer security cooperation with Japan and urged
Tokyo to consider signing an FTA with Taiwan, in part to
reduce Taiwan's dependency on the PRC. Taiwan Thinktank's
Lai I-chung, who organized the conference, privately told AIT
that the Tokyo-Beijing chill has given Taiwan a "golden"
opportunity and added that improving ties with Japan is a top
priority for the Chen government. Lai added that Taipei
hoped to cooperate more closely with Washington and Tokyo and
argued that the US-Japan security alliance should be expanded
to include Taiwan. He also stated that Taipei must be more
proactive in providing for its own security by passing the
Defense Procurement Special Budget.

Taiwan Wants Security Guarantees
--------------


4. (C) Vice-Foreign Minister Michael Kau remarked at the
conference that Taiwan wants to be a "junior partner" in the
US-Japan security framework for East Asia. Kau stated that
close military cooperation with the US and Japan is very
important for Taiwan in the context of Beijing's growing
clout. He explained that Taiwan's public perception is that
Washington is not as committed to defending Taiwan as it used
to be. As a result, the PRC's successful "United Front"
strategy of pressuring Taiwan diplomatically and
economically, has encouraged some in Taiwan to support
compromise with Beijing as the most practical policy. Kau
noted Taiwan politicians and the people have become divided
over Taiwan's cross-Strait policy and cited the KMT and PFP
leader's trips to the PRC this past spring as an example. He
argued if Japan and the US are more committed to Taiwan and
can offer Taipei additional security guarantees, this will
reduce the political gridlock plaguing Taiwan's Legislative
Yuan.


5. (C) AIT Deputy Director separately briefed Taiwan NSC
Deputy Secretary-General Ke Cheng-heng on the US-Japan
two-plus-two meetings and the "US-Japan Alliance:
Transformation and Realignment for the Future" issued at the
meeting, drawing on reftel para 12. Ke said that Taiwan very
much welcomes the steps described in the report because they
enhance US capabilities to assist Taiwan if required. He
added quickly and emphatically that Taiwan had decided not to
comment on the meeting or the report because they had
concluded such a comment would not be helpful. To the best
of our knowledge, we have not seen comments in the media on
this subject by any Taiwan government official.

Improving Trade Ties for "Economic Balance"
--------------

6. (C) Taiwan Thinktank's Lai suggested that Taiwan must also
promote closer economic ties with the US and Japan for
"economic balance" in the Asia-Pacific region. Lai said that
Taiwan is being suffocated economically by Beijing and that
Taipei needs to reassert itself via new trade mechanisms --
such as FTAs -- because Taiwan's role in APEC has been
limited and marginalized by Beijing. He also argued that
Taipei must do more to engage Southeast Asia and India in
order to regain the economic balance that has been lost to
the PRC. Noting that Tokyo and Washington are increasing
their engagement with India and Southeast Asia, Lai asserted
that Taipei must work more closely with the US and Japan in
these efforts.

Comment: But Can Taiwan Remain Discreet?
--------------


7. (C) The Chen government has been pressing for years to
strengthen its relationship at all levels with Japan and to
increase cooperation among Taiwan, Japan, and the US.
Taiwan's foreign policy efforts typically have more success
when Taipei is willing to work quietly and stay below the
radar of Beijing. While most of Taiwan's Japan policy
officials understand that trying to develop overt ties with
Tokyo would work against Taiwan, this nuanced understanding
is not shared by all senior Chen administration officials.
The challenge for the Chen administration is whether it can
continue using subtle means outside of the media's glare to
advance Taipei's ties with Japan.


8. (C) Taiwan also has continued to seek US assistance in
arranging trilateral US-Japan-Taiwan events and cooperation.
AIT is resistant to such an approach and while it may be in
Taiwan's interests to cultivate closer ties with Tokyo, we
will continue to explain to Taiwan officials that it is not
appropriate for Washington to serve as a broker and that
Taipei must develop its relationship with Japan on its own.
Paal