MEDIA REACTION: FIRST FAMILY'S ALLEGED INVOLVEMENT IN

UNCLAS AIT TAIPEI 002338

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: FIRST FAMILY'S ALLEGED INVOLVEMENT IN
FINANCIAL SCANDALS; CROSS-STRAIT TRADE



1. Summary: Taiwan's major Chinese-language dailies focused their
coverage July 8-10 on various issues, such as the recommendation by
the Taipei District Prosecutor's Office of 12 years in prison for
former Presidential Office Deputy Secretary-General Chen Che-nan for
insider trading and influence peddling; the corrected assets report
that the First Lady filed with the Control Yuan, setting the value
of President Chen's and her jewelry at NT$3.7125 million; the
homicide case involving a Taiwan family in South Africa; the DPP's
proposal to form a "Green Alliance of Public Interest" with the TSU
in order to consolidate voters' support in the 2007 legislative
election; and a local research report that found that two kinds of
Taiwan rice useful in preventing cancer.


2. In terms of editorials, the pro-status quo "China Times"
editorialized that the DPP should not adopt the highest moral
standards to question the opposition parties, only to adopt the
lowest moral standards to reflect on itself. Another "China Times"
editorial asked why there is no one in the DPP who dares to comment
on the First Family's assets report. An editorial in the pro
independence "Liberty Times," Taiwan's largest daily, that the
government should utilize the Sustained Economic Development
Conference to avoid surrendering to China and unconditional openness
to cross-Strait trade. End summary.

A) "Does the DPP Really Not Know Where Its Problems lie?"

The pro-status quo "China Times" [circulation: 400,000] noted in an
editorial (7/10):

"... To be frank, over the past one year, the DPP has used the
highest moral standards to question the media and opposition
parties' legislators who exposed secrets; the DPP, however, has used
the lowest judicial standards to cover its involvement in all
corruption scandals. Why can't the people feel impressed by this
kind of double standard? ... The DPP recently released the message
that it intends to form a "Green Alliance of Public Interest" with
the TSU. Did anyone see the TSU's immediate response? 'The TSU
will never discuss a merger with a political party deeply involved
in scandals.' Since it was humiliated by its ally in the pan-Green
alliance, if the DPP still does not know where its problems lie, and
buries its head in the sand, then no one could change the
situation."

B) "Despicable, Abhorrent Assets Declaration Report of First
Family"

The pro-status quo "China Times" [circulation: 400,000] noted in an
editorial (7/9):

"... President Chen Shui-bian said members of the First Family
always behave according to the highest moral standards. They,
however, declared their jewelry assets, since society was pressuring
them. Do politicians in the Green camp really believe that
President Chen and the First Lady jointly owned watches, necklaces,
rings, bracelets and tiaras worth less than NT$4 million? Is a
political party so big as the DPP asleep? Is there anyone who dares
to express a bit of dissenting opinion to this despicable and
abhorrent assets declaration report? ..."

C) "No Meetings Necessary for Surrender; No Endorsements Necessary
for [Unconditional] Openness in Cross-Strait Trade - Some Advice on
Cross-Strait Trade Issues at Taiwan Sustained Economic Development
Conference"

The pro-independence "Liberty Times" [circulation: 600,000] said in
an editorial (7/8)

"... In retrospect of cross-Strait trade, the 'No Haste, Be Patient'
policy exercised 10 years ago could decelerate the movement of major
Taiwan enterprises and investments to China; the government adopted
the 'Proactive Openness' policy five years ago, but overall Taiwan
economics have obviously tilted toward China. ...

"... Like its name, if the Taiwan Sustained Economic Development
Conference really wants to pursue such development, it should change
the situation in which cross-Strait trade is controlled by China.
It should also set a goal to decrease the ratio of external
investments, trade, and production in China. ... Secondly, the
executive power is always appreciated in governing. President Chen
Shui-bian stressed in his New Year speech that the government
'proactively' bears the 'management' responsibility in cross-Strait
trade, and 'effectively' decreases risks in 'openness.' Six months
have passed, and the Executive Yuan should propose a substantive
executive mechanism soon. ... We should stress that: If Taiwan
wants to surrender to China economically, no meetings are necessary;
if the government wants to open cross-Strait trade unconditionally,
no endorsements are necessary."

YOUNG