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