MEDIA REACTION: U.S.-TAIWAN FTA, TAIWAN POLITICAL

UNCLAS AIT TAIPEI 002845 SIPDIS DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - SCOTT WALKER DEPARTMENT PASS AIT/WASHINGTON SIPDIS E.O. 12958: N/A TAGS: OPRC KMDR KPAO TW SUBJECT: MEDIA REACTION: U.S.-TAIWAN FTA, TAIWAN POLITICAL SITUATION ¶1. Summary: Taiwan's major Chinese-language dailies continued to focus their coverage August 17 on former DPP Chairman Shih Ming-teh's efforts to oust President Chen Shui-bian, and investigations into the Presidential Office's special state affairs expense account. The mass-circulation "Apple Daily" ran an exclusive story on page two with the headline "DPP's Approval Rating in Taipei City Drops to Eight Percent." The pro-status quo "China Times," on the other hand, ran a banner headline on page two that said "Tension in Bian-Su Relationship? DPP Senior: Su May Step Down Earlier Than Bian Does." Several papers also carried the remarks by AIT Taipei Director Stephen Young at the ROC-USA Business Council Wednesday, in which Young commended Premier Su Tseng-chang for convening the Conference on Sustaining Taiwan's Economic Development and discussing the benefits and risks to Taiwan's economy of further cross-Strait opening. ¶2. In terms of editorials and commentaries, a news analysis in the pro-status quo "Commercial Times' discussed the possibility of Taiwan signing a free trade agreement (FTA) with the United States, saying that Taiwan's own attitude is the key barrier to the U.S.-Taiwan FTA. An editorial in the pro-independence "Liberty Times," Taiwan's biggest daily, on the other hand, praised former President Lee Teng-hui's recent suggestion to replace the expression 'nativist regime' with the term 'Taiwan-centered regime.' An opinion piece in the limited-circulation, pro-independence, English-language "Taipei Times" criticized former DPP Chairman Shih's campaign to oust President Chen, saying it shows no advance toward democracy and the rule of law. End summary. ¶3. U.S.-Taiwan FTA "It's a Long Way to Get the Wished-for FTA" Journalist Tan Shu-chen noted in the pro-status quo "Commercial Times" (8/17): "There is hardly any progress with regard to Taiwan's long-term efforts to seek to sign a free trade agreement (FTA) with the United States, and Taiwan has claimed that it was because of Beijing's political interference. But to judge from AIT Taipei Director Stephen Young's speech, we finally have realized that the key barrier to a Taiwan-U.S. FTA is Taiwan's own attitude. The American Chamber of Commerce in Taipei reminded the Taiwan government several times that Congress' fast-track Trade Promotion Authority will expire in July 2007, and it is thus a matter of great urgency for Taiwan and the United States to sign a FTA. To increase the incentives for the United States to sign a FTA with Taiwan, American firms suggested that Taiwan quickly remove its restrictions on cross-Strait trade and let mainland China become a hinterland of Taiwan's market. Meanwhile, American firms would use every channel they know to lobby the U.S. Congress to extend the Trade Promotion Authority. "But Taiwan went the opposite direction. What Taiwan has been doing is to keep circling in the outer lane. Even if the island has mobilized many 'friendly' groups to campaign for Taiwan, there is still no incentive for the United States to sign a FTA. As a result, Washington appears to be unresponsive to Taiwan's clarifications. ... It is noteworthy though, that in the wake of the Conference on Sustaining Taiwan's Economic Development, the public generally believe that the Su revisionism, which indicated the possibility of Taiwan easing its restrictions on cross-Strait interaction, is discarded. But Young mentioned Su's revisionism [in his speech] and said he wanted to applaud Su [for that]. At this moment, when President Chen is plagued by scandals and the United States has assessed that his leadership is at a critical stage, Washington has given policy recommendations to Taiwan via Young's mouth. The DPP government should really give thought to what this move indicates after all." ¶4. Taiwan's Political Situation A) "'Taiwan-Centered Regime' and 'Taiwan People in a New Era'" The pro-independence "Liberty Times" [circulation: 600,000] editorialized (8/17): "Former President Lee Teng-hui said recently that Taiwan is already an independent sovereign state, and rectifying Taiwan's name and writing a new constitution are things Taiwan must do. But since the expression 'nativist regime' indicates separatism, which may lead to division and confrontation, Lee suggested that Taiwan society use 'Taiwan-centered regime' to replace 'nativist regime' in the future, and those who identify with 'Taiwan' should be regarded as 'Taiwan people in a new era.' Given the current situation, which is full of political upheaval and confusion over identity and values, Lee's suggestion to replace the expression 'nativist regime' with 'Taiwan-centered regime' helped to clarify the confusion and may even direct Taiwan toward a new way out of the current Blue-Green confrontation. ... In other words, it is a leap for Taiwan history and further consolidation of Taiwan-centered consciousness to move from a 'nativist regime' to a 'Taiwan-centered regime,' and from 'Taiwan people' to 'Taiwan people in a new era.'" B) "Shih's New Campaign Is a Sorry Tale" Linda Gail Arrigo, the ex-wife of former DPP Chairman Shih Ming-teh and the international officer for the Green Party Taiwan, opined in the pro-independence, English-language "Taipei Times" [circulation: 30,000] (8/17): "... Corruption has been long ingrained in Taiwan society, down to the lowest levels, and the change of ruling parties has only begun to alter the rules. We cannot defend the DPP in general or the president in particular in so far as they have taken the easier route of continuing past habits, trying to buy off the obstacles, and perhaps even lining their own pockets with unearned rewards. But [is] his campaign for Chen to step down now, without use of the present mechanisms of impeachment or recall, any advance toward democracy and the rule of law? Does it test or improve the present legal system? Or would it be a step back to the KMT's former easy appropriation of state resources and assets, which we can assume will rebound again with vengeance if KMT Chairman Ma Ying-jeou becomes president? "So why has Shih got involved in politics again? It seems anachronistic for him to raise the specter of revolution, when now finally the citizens can exercise their right to vote. Does he have a long-term vision of what he wants? Does he still stand for Taiwan's emergence as an internationally recognized nation? Or has he abandoned the ideals that he sacrificed 25 years of his life for, too?" YOUNG