AIT DIRECTOR EXCHANGES VIEWS ON DEMOCRACY, DEFENSE WITH

UNCLAS AIT TAIPEI 003141 SIPDIS DEPARTMENT FOR EAP/TC, EAP/P, EAP/PD - DAVID FIRESTEIN DEPARTMENT PASS AIT/WASHINGTON SIPDIS E.O. 12958: N/A TAGS: OPRC KPAO TW SUBJECT: AIT DIRECTOR EXCHANGES VIEWS ON DEMOCRACY, DEFENSE WITH TAIWAN TV EXECUTIVES ¶1. Summary: AIT Director Stephen M. Young hosted a luncheon Sept. 7 at his residence arranged by PAS for senior news executives of Taiwan's six leading cable television news channels. The luncheon was held to introduce Deputy Director Robert S. Wang and to exchange views on major issues. The discussion on ranged from press freedom in Taiwan to U.S.-Taiwan-China relations, the growth of democracy in Taiwan, Taiwan's economic and political development, and the immediate need for the island to provide for its own defense. End summary. ¶2. Television is the most popular medium in Taiwan, and the cable penetration rate here is about eighty-five percent, one of the highest in the world. The six cable news channels represented at the Director's luncheon reach most of the television news audience. The six channels also represent both Blue and Green camps; one, ERA-TV, claims to be neutral in Taiwan's politicized media environment. The guests at the luncheon were: Ms. May Chen (Chen Yi-mei),Senior Manager, TVBS Ms. Ann Hu (Hu Wan-ling),Executive, General News Dept., Formosa TV Mr. Liao Fu-shun, News Director, CTI-TV Mr. Jason Ma (Ma Yong-jui),Executive Vice President, ETTV Mr. Jeffrey Yen (Yen Chih-ching),Executive Vice President, ERA Television Mr. Yu Chao-Wei, News Manager, SET-TV ¶3. Those present also included Acting PAO David E. Miller. Topics discussed during the 90-minute gathering touched on a wide range of subjects: press freedom in Taiwan, U.S.-Taiwan-China relations, the growth of democracy in Taiwan, Taiwan's economic and political development, and the immediate need for the island to provide for its own defense. ¶4. During the course of the luncheon, Director Young pointed out that Taiwan and China have significantly improved their trade relations in recent years. When one of the guests expressed the frequently-heard concern that Taiwan's economic dependence on China could hurt local businesses, Director Young noted that many Taiwan companies, including flat TV panel maker Chi Mei, have managed to maintain their competitiveness while diversifying their markets to include China. Deputy Director Wang pointed out that not further liberalizing would eventually undermine Taiwan's overall competitiveness. ¶5. Participants agreed with Director Young that Taiwan's media, which have enjoyed greatly increased freedom of speech and are known for their intensive reports on Taiwan's democratic development and criticism of government corruption, have even influenced mainland Chinese viewers and even coverage of news by Chinese media. Director Young, citing a recent decision by New York Yankees pitcher Chien-ming Wang to boycott interviews by Taiwan media in a bid to protect his family from further media harassment, engaged the executives in a discussion of where the line on coverage should be drawn. They agreed that the free-wheeling Taiwan press was often intrusive, but also cited the pressure of ratings that drives their operations. ¶6. At one point the luncheon discussion turned to the topic of U.S. arms procurements by Taiwan. Responding to the comment that "Taiwan needs tanks, but the U.S. wants to sell it boots," Director Young emphasized Taiwan's need to ensure that it can provide for its own defense. While Taiwan's lawmaking Legislative Yuan has blocked passage of a military budget earmarked for arms procurements from the United States since President Bush approved Taiwan's proposal in 2001, the island is seeing a widening military gap with China, which has rapidly boosted its military capabilities in recent years. One media executive, citing an unnamed Taiwanese military expert, said Washington has not responded to Taipei's request for more advanced weapons to fight possible cross-Strait electronic warfare. In response, Director Young said that what the U.S. proposes to sell takes into consideration Taiwan's overall defense needs, not just individual weapons systems but all that goes with deploying them, including software, hardening, a supply chain, secure communications and training. He told the media executives the arms procurement would offer Taiwan a good bargaining chip when facing a Chinese military buildup that threatens regional stability. Director Young also reminded them that Taiwan's arms purchases could face a changed political environment in the United States, as mid-term elections come this year and presidential elections come in 2008. ¶7. A discussion of the on-going movement calling for President Chen Shui-bian to step down led Director Young to say that the U.S. hopes the mass sit-in protest slated to begin Sept. 9 in Taipei would proceed peacefully, as Taiwan has moved toward greater democracy. He also proposed to meet with media executives again for more dialogues in the future, and promised to consider their requests for on-the-record interviews. YOUNG