MEDIA REACTION: U.S.-TAIWAN RELATIONS

UNCLAS AIT TAIPEI 001754 SIPDIS DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - ERIC BARBORIAK DEPARTMENT PASS AIT/WASHINGTON SIPDIS E.O. 12958: N/A TAGS: OPRC KMDR KPAO TW SUBJECT: MEDIA REACTION: U.S.-TAIWAN RELATIONS ¶1. Summary: As the insider trading scandal allegedly involving President Chen Shui-bian's son-in-law continued in Taiwan's media spotlight May 23, newspaper coverage also focused on Taiwan's failure to obtain observer status at the World Health Assembly and on the year-end Kaohsiung mayoral race. The pro-status quo "China Times" ran an exclusive front-page story with the headline: "Lu: Will Resign As Vice President If Corrupt Practices Cannot Be Eliminated within Three Months." The pro-independence "Taiwan Daily," on the other hand, ran a banner headline on page three that said "U.S. Assistant Secretary of State for East Asian and Pacific Affairs Urges China to Engage in Direct Dialogue with President Chen." The same newspaper also ran a story inside with the headline: "Taiwan-U.S. TIFA [Talks] to Kick off Day after Tomorrow." ¶2. In terms of editorials and commentaries, an opinion piece in the mass-circulation "Apple Daily" said Chen's move to specify a policy in Taiwan's first National Security Report to increase the island's national defense budget can be viewed as a plan that kills two birds with one stone. On the one hand, according to the article, Chen's move is akin to making a written commitment to the United States, which will evidently help improve Chen's interactions with Washington. On the other hand, the article added, it will help pressure the opposition parties to pass the defense budget proposed by the Chen administration - a move that will help augment Chen's performance with regard to national security. A separate opinion piece in the "Apple Daily" asked the United States why it left out Taiwan when it has signed Free Trade Agreements (FTA) with major anti-terrorist countries in the world. End summary. A) "Bian and U.S. Each Has Something to Gain from [Taiwan's] National Security Report" Professor Chang Tzu-yang, head of Nanhua University's Department of International and Mainland Affairs, opined in the mass-circulation "Apple Daily" [circulation: 500,000] (5/23): "The National Security Report has come out, and many people in Taiwan think there is nothing new in the report. But such a view might overlook some of the details that are closely related to future political developments: First, the U.S. reaction came extraordinarily quick. AIT Taipei Director Stephen Young's comments appeared in the newspapers before the report came out. Young assessed the report as 'constructive,' and he urged China to learn from Taiwan's 'transparency of information.' Even though Young did not indicate which part of the report is constructive, his speech at the Taipei American Chamber of Commerce on May 12 seemed to reveal some hints. In his speech, Young urged both the ruling and opposition parties in Taiwan to work together to increase the national defense budget. ... "The move to specify the policy to increase [Taiwan's] national defense budget in the 'binding' National Security Report is, externally speaking, akin to Chen Shui-bian handing a written commitment to the United States - a move that will help improve his interactions with the United States so as to complement his mediocre performance on the diplomatic front. In the domestic aspect, Chen can use the report to intangibly include the opposition parties under the U.S. pressure, so they will consider passing the defense budget allocated by the Chen administration and not wait until after 2008 - a move that will help augment Chen's performance with regard to national security. It can thus be viewed as a plan that kills two birds with one stone. ... "The United States is highly skilled in controlling how its relations with Taiwan can be improved. Deputy U.S. Trade Representative Karan Bhatia is scheduled to visit Taiwan May 25; he will ask Taiwan to strengthen its enforcement of the Intellectual Property Rights Law, loosen its financial regulations, and support the U.S. position concerning the Doha Round. The friendly atmosphere that has just been restored between Taiwan and the United States will be conducive to Bhatia's promotion of the U.S. trade agenda. Judged from this perspective, Washington has its reasons in acting in line with [Taiwan]. ..." B) "The United States Should Sign a Free Trade Agreement with Taiwan as Early as Possible" Chao Wen-heng, associate research fellow of the Taiwan Institute of Economic Research, opined in the mass-circulation "Apple Daily" [circulation: 500,000] (5/23): "Taiwan has been working with the United States to strengthen international intelligence cooperation, prevent money laundering, and provide various kinds of humanitarian assistance. In addition, Taiwan either participated in or supported the United States' campaign for the global war on terrorism, such as signing the Container Security Initiative and the Proliferation Security Initiative. On the international frontlines of the war on terrorism, Taiwan plays an important role with regard to money laundering prevention and intelligence cooperation. Former AIT Taipei Director Douglas Paal even praised Taiwan for its contributions to international anti-terrorist activities. [We] believe the U.S. government is clearly aware of this situation. But what we cannot understand is why Washington has left out Taiwan when it has signed Free Trade Agreements (FTA) with all the major anti-terrorist countries. ... "... If the United States does not sign an FTA with Taiwan, no other country will do so (other countries will follow suit after Taiwan signs an FTA with the United States). Under such a circumstance, Taiwan's trade position in the international community is doomed to marginalization. If major trade and economic countries in the world sign FTAs with each other while Taiwan is excluded, the trade barriers formed by these FTAs will make it difficult for Taiwan's products to be exported to other countries, and [the result] will thus be another form of economic isolation. ..." YOUNG