HIGH-SPEED RAIL CHAIRMAN CRITICIZES CHEN'S

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 001283

SIPDIS

SIPDIS

DEPT FOR EAP/TC

E.O. 12958: DECL: 04/11/2016
TAGS: ECON PGOV EINV CH TW
SUBJECT: HIGH-SPEED RAIL CHAIRMAN CRITICIZES CHEN'S
PERFORMANCE


Classified By: AIT Director Stephen M. Young, Reason 1.4 d


1. (C) Summary: During an April 10 meeting with AIT
Director Stephen Young, leading businesswoman and Taiwan
High-Speed Rail Corporation Chairman Nita Ing (protect)
expressed strong disappointment in the performance of the
Chen administration, arguing that it had been unsuccessful
at adapting from an opposition party to a governing party.
She commented that Chen was too isolated with a shrinking
circle of advisors. She also noted that the administration
had failed to communicate effectively with Taiwan's
business community. A former supporter of the Chen
administration, Ing's change in attitude shows the degree
to which Chen has lost support among Taiwan business
leaders. End summary.


2. (C) AIT Director Stephen Young met with Nita Ing,
chairman of the Taiwan High-Speed Rail Corporation (THSRC)
and CEO of Continental Engineering Corporation (CEC),on
April 10 to discuss recent developments in Taiwan's
political environment and the state the economy. THSRC is
building a high-speed rail system that will connect major
cities on Taiwan's west coast from Taipei to Kaohsiung.
CEC was founded in Chongqing, China, in 1945 by Ing's
grandfather. It has participated in the construction of
many of Taiwan's major infrastructure projects.

DPP Failed to Adapt from Opposition to Governing Party
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3. (C) Ing expressed strong disappointment at the
performance of the Chen Shui-bian administration since
coming to power in 2000. She argued that the Democratic
Progressive Party (DPP),which had been successful as an
opposition party, never developed the ability to govern
effectively. She remarked that Chen's preference for
campaigning over governing was part of the problem. Ing
also pointed out internal divisions within the DPP, noting
that some in the party believed accusations of corruption
were directly linked to Chen. Director Young observed that
the KMT had to bear some responsibility for the DPP's
difficulty in governing because it had been unwilling to
share its experience by permitting KMT members to serve in
the DPP government.

Chen Too Isolated
--------------


4. (C) Ing contended that Chen was not sociable and had
isolated himself within a small circle of advisors who tell
him what he wants to hear. She said this circle had
steadily shrunk during his administration. The President's
wife now plays a key, though difficult to define, role.
Director Young speculated that Chen applied a standard of
total loyalty to his advisors, cutting them off if they
expressed an alternative opinion.

DPP and Business Speaking Different Languages
--------------


5. (C) Ing argued that the Chen administration could claim
no significant economic accomplishments during its tenure
and that it had failed to win friends in business.
According to Ing, the Chen administration "speaks a
different language" from the business community. Director
Young asked Ing if the new Vice Premier, Tsai Ing-wen had
the skills to communicate effectively with businessmen.
Ing said that she had some of the skills but it was too
late because the environment for such communication had
deteriorated too much. When asked about the business
community's opinion on the government's new "active
management" policy for economic relations with the PRC, Ing
indicated that businessmen didn't believe that the
administration was capable of implementing effective
management mechanisms. She observed that because the
government had announced so many different slogans,
businessmen had stopped paying attention.

Comment - Taiwan Business Disillusioned
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TAIPEI 00001283 002 OF 002




6. (C) Ing's disappointment in the Chen administration is
an important indication of its deteriorating relations with
Taiwan's business community. She had formerly been a
supporter of the Chen administration and had even
considered serving in its government. Her change in
attitude shows the degree to which the DPP has lost what
support it had among business leaders when it came to
power. Perhaps her most telling comment was that Chen
"speaks a different language." While Taiwan business
leaders are highly internationalized, Chen and his advisors
remain absorbed in domestic political realities. This has
made it impossible for the two groups to find any common
ground. End comment.
YOUNG