MEDIA REACTION: PRESIDENT CHEN CEDING POWERS

UNCLAS AIT TAIPEI 001929 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: PRESIDENT CHEN CEDING POWERS ¶1. Summary: Taiwan's major Chinese-language dailies focused their coverage June 6 on the pan-Blue and pan-Green camps' moves in the wake of President Chen Shui-bian's announcement last Wednesday to relinquish some of his powers; the plunge of Taiwan's stock market Monday; and the investigations into Chen's son-in-law's insider trading scandal. The pro-status quo "China Times" ran a front-page banner headline that read "KMT Finally Picks Its Tune; Ma Decides to Recall Chen Shui-bian." The same newspaper also carried the results of its latest survey, which showed that those who hope that President Chen would step down rose to 47 percent, an increase of four percent since the last poll on June 1. The same poll also showed that KMT Chairman Ma Ying-jeou's approval rating dropped from 63 percent in late April, when he met with Chen following his U.S. trip, to 58 percent. The pro-independence "Liberty Times," Taiwan's biggest daily, however, reported on page two that "Cabinet, DPP, and DPP Legislative Caucus Form Iron Triangle;' and on page three, the paper said "If Pan-Blue Camp Casts No-Confidence Vote, DPP Will Urge Bian to Dissolve Legislature." Both the "Liberty Times" and the pro-unification "United Daily News" front-paged the plunge of Taiwan's stock market by 244 points Monday. The "Liberty Times" attributed the loss to the current chaotic political situation, while the "United Daily News" said it was due to rumors that the DPP government wanted to "torture" the stock market. ¶2. In terms of editorials and commentaries, a "Liberty Times" editorial said that not only the DPP but also the whole of Taiwan will lose if the pan-Blue camp succeeds in paralyzing the government. A "United Daily News" analysis said in the wake of Chen's relinquishing some powers, a new chess game has been formed for the Green leaders - namely, Su Tseng-chang and Yu Shyi-kun, Chen and Annette Lu will each form an alliance, while Frank Hsieh will work alone. End summary. A) "Taiwan's National Sovereignty and Democratic Order Are Facing Challenges" The pro-independence "Liberty Times" [circulation: 600,000] editorialized (6/6): "... The pan-Blue camp's wishful thinking is obviously that they will win as long as they can form a new Cabinet, cast a no-confidence vote on the incumbent Cabinet, or recall President Chen; [if not] they can still win if they totally paralyze the government. But should that be the case, the loser will not just be the DPP; instead, all of Taiwan will lose, too. As a result, the DPP government should demonstrate its concentrated strength in the face of great danger or emergency, calmly and steadily implementing policies that benefit the national economy and people's livelihoods. In fact, only by doing so can the DPP administration break the siege of the pan-Blue camp and fight its way out. ... "Democracy is the best tool for Taiwan to resist totalitarian China. Taiwan's current situation is not just about whether a certain person should leave or stay, but about the challenge of whether the island's democratic order can be maintained. If the democratic order is shaky and the minority of a 'party's will' overrides the majority of 'public view,' the democratic fruit that Taiwan has won over the past two decades will fall apart overnight, and China will expand its United Front attacks. Those who are concerned about Taiwan's future must not assume that this is just a fight between the ruling and opposition parties and feel indifferent about it!" B) "A New Chess Game for Green Leaders - Su and Yu, Bian and Lu, While Hsieh Will Work Alone" Journalist Lo Hsiao-ho commented in a news analysis in the pro-unification "United Daily News" [circulation: 400,000] (6/6): "... The political situation in the post-Bian era is still full of changes. Su Tseng-chang and Yu Shyi-kun have obviously formed an alliance, while former Premier Frank Hsieh, who currently has no position or resources, is trying to plow a new path. Annette Lu, to everyone's surprise, has become a feasible chessman for Bian in this changing game of chess. Lu has shown full support for Chen [when they] faced the crises of being recalled or a no-confidence vote over the past few years, creating a good impression among the DPP supporters. She also demonstrated wisdom about how to cope with predicaments by inviting leaders of various parties to talks and making a goodwill gesture to Wang Jin-pyng. She has shown that she strived to demonstrate the demeanor of a multi-partisan leader. ..." KEEGAN