MEDIA REACTION: U.S. AND CROSS-STRAIT THREE LINKS

UNCLAS AIT TAIPEI 003957 SIPDIS DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - DAVID FIRESTEIN DEPARTMENT PASS AIT/WASHINGTON SIPDIS E.O. 12958: N/A TAGS: OPRC KMDR KPAO TW SUBJECT: MEDIA REACTION: U.S. AND CROSS-STRAIT THREE LINKS Summary: Taiwan's major Chinese-language dailies continued to focus their coverage November 23-24 on local political issues, including the continuing investigation into Taipei Mayor Ma Ying-jeou's alleged misuse of the special mayoral allowance, the political impact caused by Ma's case, and the upcoming Taipei and Kaohsiung mayoral races. An editorial and an opinion piece in the pro-independence "Liberty Times," Taiwan's largest-circulation daily, and an op-ed article in the pro-status quo "China Times," however, all focused on AIT Taipei Director Stephen Young's speech to the American Chamber of Commerce in Taipei on November 21, in which he encouraged Taiwan to negotiate with China to open the three links as early as possible. The "Liberty Times" editorial claimed that the three links across the Taiwan Strait would ultimately lead to the demise of the U.S. arms procurement bill, and the opinion piece criticized Young for paying attention to U.S. business interests alone while having no regard for Taiwan's political and economic security. The "China Times" op-ed article judged that Young's request for the three cross-Strait links will not become the U.S. policy in the next two to three years. End summary. A) "Three Links and Direct Transportation will Ultimately Kill the Arms Procurement Budget" The pro-independence "Liberty Times" [circulation: 600,000] editorialized (11/24): "AIT Taipei Director Stephen Young delivered a speech entitled 'Tending the Garden of U.S.-Taiwan Relations' at a meeting of the American Chamber of Commerce in Taipei on November 21. Young pointed out that the U.S.-Taiwan partnership stands on three legs: Taiwan's security, Taiwan's democracy, and the robust U.S.-Taiwan bilateral economic and trade relationship. ... 'The U.S. will continue to work to insure that Taiwan will remain a prosperous, vibrant partner with the U.S.' - this is a statement indicating Director Young's intention. But whether or not the so-called three links and direct transportation can ensure Taiwan's prosperity and vigor requires further discussion and consideration. Taiwan's cash has been flowing into China over the past decade, and given the [Taiwan authorities'] pro-active opening [policy] over the past six years in particular, Taiwan's investments in China have accumulated to US$300 billion. Evidently, it is not that Taiwan has not invested enough in China; instead, it is [Taiwan's] excessive investments [in China] that have put Taiwan's economy into a predicament. ... "... In Taiwan, the people who strongly advocate the three links are of the pan-Blue camp. They push the three links not to develop Taiwan's economy but in the hope of reaching the objective of cross-Strait unification (with Taiwan being annexed by China) via economic integration across the Taiwan Strait. China has also claimed that Taiwan's economic reliance on China is increasing, and Taiwan will give in politically in the event that China adopts economic sanctions [against the island]. In other words, the so-called three links and direct transportation will only give China more bargaining chips in dealing with Taiwan. "Under such circumstances, it will be like pushing Taiwan into a great fire if people still regard the three links as a cure-all. One can still recall that in a press conference held in late October, Young reminded the Legislative Yuan to pass the arms procurement budget this fall and to strengthen [Taiwan's] self-defense capability as early as possible. If the three links come to pass and both sides of the Taiwan Strait have a closer trade and economic relationship, wouldn't those pan-Blue legislators who blocked the arms procurement budget talk more proudly of opposing the arms procurements? Wouldn't the so-called three links become an ultimate killer of the arms procurement budget? Should this happen, wouldn't [Young's] statement that 'Taiwan should not fear closer ties with its huge and rapidly growing neighbor, so long as it retains its ability to defend itself' become empty talk? "The discussion of the three links cannot be done simply from the perspective of the U.S. or Taiwan businesses but should focus on the interests of the 300 million American people and 23 million Taiwan people. In addition to the trade and economic relationship, what's more important for the United States and Taiwan is their strategic relationship. Besides, business interests are short-lived, whereas strategic interests are long-lasting. One should not lose large gains simply because of a trivial consideration. Young emphasized that 'even with the dramatic rise of China's economy, Taiwan remains extremely important to the United States,' so evidently it is not Young who has failed to note this. We hope that Young can have a more profound understanding of the advantages and disadvantages of the three links from this perspective." B) "United States Attaches Greater Importance to Business Than to Taiwan?" Chen Li-chu, a think tank assistant, opined in the pro-independence "Liberty Times" [circulation: 600,000] (11/23): "AIT Taipei Director Stephen Young, in a recent speech delivered to the American Chamber of Commerce in Taipei, which was entitled 'Tending the Garden of U.S.-Taiwan Relations,' called on Taiwan to negotiate with China to open the three links as early as possible. A closer look at Young's remarks showed that [Young] was talking about Taiwan-U.S. trade relations from the position of U.S. business interests only, with no regard for the impact of the three links on Taiwan's political and economic security. It seems that mercantilism has come back to life again for the American people in a form that is different from what it was in the 16th or the 17th century. ... "Young's remarks showed very clearly that AIT views the three links issue across the Taiwan Strait simply from the position of enhancing the United States' best business interests. [This view] has completely disregards the immediate and direct impact on Taiwan's defense security, economic security, and unemployment which might possibly be triggered by direct transportation across the Taiwan Strait. ... The Taiwan people should condemn such a short-sighted behavior of American mercantilism." C) "U.S. Pressure to Push Three Links?" Kuan Hong-chang, a Ph. D. candidate of political science at the University of Texas at Austin, opined in the pro-status quo "China Times" [circulation: 400,000] (11/24): "AIT Taipei Director Stephen Young recently encouraged Taiwan to negotiate with China to open the three links as soon as possible, in order for Taiwan to maintain its important status in the global supply chain and to prevent itself from being isolated from the trend of regional integration. In the past, requests for opening the three links often came from Taiwan businesses in mainland China, Taiwan's local businesses and the pan-Blue camp, or even foreign business groups in Taiwan. Calls from foreign official representatives [for the three links] were rarely seen. It thus remains to be seen whether the remarks by Young in the capacity of U.S. official representative stationed in Taiwan indicated that the United States, as a third party involved in cross-Strait issues, has extended its concerns from political issues of cross-Strait security to economic issues of cross-Strait trade and economic exchanges. This writer believes that Young's remarks this time did not indicate that the United States will turn its 'request for Taiwan to open the three links' into an official policy toward Taiwan in the next two to three years. ..." YOUNG