MEDIA REACTION: PRESIDENT CHEN SHUI-BIAN'S NEW YEAR

UNCLAS SECTION 01 OF 04 TAIPEI 000013

SIPDIS

DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - ERIC
BARBORIAK
DEPARTMENT PASS AIT/WASHINGTON

E.O. 12958: N/A
TAGS: OPRC KMDR KPAO TW
SUBJECT: MEDIA REACTION: PRESIDENT CHEN SHUI-BIAN'S NEW YEAR
SPEECH


1. Summary: Major Chinese-language Taiwan dailies focused
their coverage January 2-3 on two issues: President Chen
Shui-bian's New Year speech, and the U.S. arms procurement
bill. President Chen Shui-bian said Sunday in his New Year
speech that his administration would adopt a new policy,
"Proactive Management, Effective Liberalization," to deal
with future cross-Strait economic and trade issues. Chen
also said he looks forward to a civilian-drafted bill for
"Taiwan's New Constitution" in 2006, adding that he hopes
that the bill could be passed by 2007. The second issue in
the news is that KMT Legislator John Chiang revealed Monday
in the Legislative Yuan that AIT Director Douglas Paal told
him that the items and prices of U.S. arms to be procured by
Taiwan are adjustable, depending on Taiwan's own needs.


2. In terms of Chinese- and English-language newspaper
editorials, the most scrutinized news development was
President Chen Shui-bian's New Year speech. Every Taiwan
daily followed their individual, traditional pro-
independence or pro-unification stance when commenting on
the speech. The pro-independence dailies, "Liberty Times,"
"Taiwan Daily," "Taiwan News," and "Taipei Times," applauded
President Chen's speech and said they hoped that Chen could
carry out the goals outlined in the speech. "Liberty Times"
said President Chen needs to take actual action in pursuit
of the goals set by him. "Taiwan Daily" urged Chen not to
hesitate when carrying out the goals set forth in his
speech. The English-language "Taiwan News" editorialized
that Chen has finally found the clear role and goals of the
DPP government. The English-language, "Taipei Times"
applauded President Chen for the aggressive stance he will
take to deal with old problems.


3. The pro-unification "United Daily News" criticized
President Chen for using Taiwan's future as the last bet for
his presidency and the independence movement. The pro-
unification, English-language, "China Post" commented that
Chen's speech declared war on China and domestic political
parties.


4. The centrist, pro-status quo "China Times" said President
Chen's closed-door policy has been proven to be the wrong
policy and will not benefit Taiwan in the future. Another
op-ed piece in "China Times" said President Chen's
unwillingness to seek domestic reconciliation and to improve
relations with China will leave Taiwan spinning futilely.
End summary.

A) "Anticipating President Chen to Take Actual Actions under
Correct Directions"

The pro-independence "Liberty Times" [circulation: 600,000]
noted in its editorial (1/2):

". Regarding the so-called civilian version of a draft of a
`new Taiwan constitution,' the so-called `referendum on a
new constitution,' the earlier proposals for [Taiwan] name
rectification and a new constitution, and a variety of
reforms, the public, in fact, have never pressed the
government to complete them in a timely manner. They only
hope that the government will spare no effort to reach these
goals. If President Chen is dedicated to it, [we] believe
the people will be happy to see him be successful. The key
lies in that if one wants to pursue these goals, he cannot
take the route of promoting economic affairs and political
affairs in the opposite direction [economic dependence on
China and political independence from China]. President
Chen's term will end in more than two years. It is not a
short time. As long as there is a will, there is a way.
From now on, let's wait and see President Chen's actions."

B) "2008 New Constitution is the Key to Taiwan's Fate, and
We Should Fortify Internal and External Communications to
Facilitate Constitutional Reforms"

The pro-independence, limited circulated "Taiwan Daily"
[circulation: 30,000] editorialized (01/03):

". We hope that the President does what he says without any
more hesitation, so that Taiwan's new constitution can be
put to a referendum during his term. This will be Chen's
historical move to answer to Taiwan's history, and to have
hope for Taiwan's future. ."

C) "Chen Finally Finds Strategic Clarity"

The pro-independence "Taiwan News" [circulation: 20,000]
editorialized (01/03):

"The most important message conveyed by President Chen Shui-
bian in his `Democratic Taiwan: Thriving Onward' New Year's
Day message is that his Democratic Progressive Party
administration has finally attained a degree of strategic
clarity about the role and goals of the DPP government and
how to get the needed popular support to achieve at least
some of its goals.

". Chen also specifically declared that it was essential for
the DPP government to `stand on the side of the people' and
`link with social forces' to promote realization of the
repossession of ill-gotten KMT party assets, the passage of
the long-delayed defensive arms procurement bill and other
political, social and economic reforms obstructed by the
conservative pan-Blue legislative majority.

". We can see genuine evidence that Chen has engaged in
`self-examination' regarding the reasons for the DPP's
recent electoral setbacks. The main shortcoming of the DPP
government during the past five and a half years has been
its reluctance or lack of confidence in promoting a new
philosophy of governance based on the values of the `Taiwan
democratic road,' namely democracy, freedom, human rights,
peace, social justice and environmental sustainability. ."

D) "The Grim Road Ahead"

The pro-independence, English language "Taipei Times"
[circulation: 30,000] editorialized (01/03)

"President Chen Shui-bian's New Year message was different
from his previous speeches that pretended everything was
going well.

"This time, he adopted a more aggressive attitude in dealing
with problems that have plagued the government since 2000.

"Commentators say that since the Democratic Progressive
Party (DPP) took power, the party has been living in a dream
world in which "reconciliation" with the opposition is
possible. This led the government to support a policy of
`active opening, effective management' over China and
`reconciliation and coexistence' with the opposition.
But Chen has finally realized that what the opposition
really wants is the power to rule. .

". Although Chen placed considerable emphasis on the
importance of clean government, he retains a number of
people of dubious character around him and failed to
satisfactorily address the question of Presidential Office
staff playing the stock market during office hours.

"His promise to establish a government ethics and anti-
corruption office under the Ministry of Justice, however, is
simply adding to the already formidable bureaucracy. If this
office is to be established, it should be directly under the
Presidential Office. Regardless, the sheer volume of talk
and the absence of action on government and other corruption
have been acutely disappointing.

"A number of Chen's idealistic proposals, such as a
referendum on a new constitution, are likely to sustain
confrontation between the government and the legislature.
But without any clear strategy to have these items appeal to
lawmakers, it is likely that 2006 will be yet another year
of gridlock, stalling and impotent speeches."

E) "The World Sees a Chen Shui-bian Who Drinks Poison to
Heal His Wound! And an Exasperated and Ferocious War
Proclamation"

The pro-unification "United Daily News" [circulation:
400,000] editorialized (1/2):

"Chen Shui-bian's New Year remarks can be seen as an all-out
proclamation of war against [our] national identity, the
Republic of China Constitution, mainland China and the
opposition camp.

"The whole speech indicates that, after nearly one month of
deliberations since the DPP's major defeat in the three-in-
one elections, Chen Shui-bian has chosen an even tougher and
more radical route as the one last bet for his own political
life and the Taiwan independence movement. .

". We must say that such a `general route' like this is a
bold gamble by Chen Shui-bian and the Taiwan independence
movement. Taiwan or the Republic of China must consider
whether it wants to be used by Chen Shui-bian and the Taiwan
independence movement as their last single bet. The people
can tell from the remarks, which were filled with bigotry
and autocracy, that Chen Shui-bian has not really reflected
on the reasons for his government's failure, and that he has
selected the wrong strategy to re-create vitality for
himself and the DPP. ."

F) "Declaration of `War' on Dtente"

The pro-unification, English-language "China Post"
[circulation: 30,000] editorialized (01/02)

"President Chen Shui-bian has done it again.

"In a New Year's Day address, Chen declared war yesterday on
dtente between Taiwan and China as well as the budding
reconciliation between his ruling Democratic Progressive
Party and the opposition Kuomintang. He surprised
practically everybody, who had been led to believe -- the
President had warned he was going to make a crucial policy
speech much more important than either of his two inaugural
addresses -- that he would offer another olive branch to
China following the election debacle his party suffered on
Dec. 3.

". Why President Chen did not even try to offer some
platitudes to placate the people looking forward to a morale-
boosting speech on the first day of the year is beyond our
comprehension. He remains just as combative as he used to
be. But everybody knows he often does not to say what he
means. We hope he was his usual self when he spoke before
the nation yesterday."


G) "How Long Can One Close the Door and Act Like an
Emperor?"

The centrist, pro-status quo "China Times" [circulation:
400,000] editorialized (01/03):

"If President Chen really wants to promote peaceful
development across the Strait, the most important thing is
to restore gradually his credibility [in the eyes of] the
[Taiwan] people and foreign political figures. If people
cannot find consistent information in the President's
announcements and speeches over the past years, the people
would feel that they have lost a trustworthy national leader
even though President Chen still thinks he holds power (and
is not a lame duck).

". President Chen should understand that trends relating to
cross-Strait economic and trade relations are not dominated
either by political figures, or by think-tank consultants,
but by `the market.' . [Former President] Lee Teng-hui
suggested the `Go Slow, Be Patient' policy, but he could not
stop Taiwan industries from moving to China. President Chen
suggested the `Effective Management' policy, but he also
cannot stop entrepreneurs from taking other indirect routes
to China. .

"President Chen's New Year speech is on the dark green side
of the spectrum, but one might not have a strong feeling
from the angle of politics. The interpretation from
Industry, however, is quite pessimistic, as is evident in
the drop of 86.28 points in Taiwan Stock Market Exchange
yesterday. ."

H) "[Let's] Continue to Spin Futilely and Fight Among
Ourselves For Another Two Years"

The centrist, pro-status quo "China Times" [circulation:
400,000] editorialized (01/03):

"Not surprisingly, President Chen Shui-bian officially
realized his promise in his New Year address, the promise
made prior to the "3-in-1" elections, to tighten cross-
Strait relations if the pan-Blue camp won a landslide
victory. All the optimistic speculations foreign investors
and legal entities made before the elections are now proven
to be completely self-indulgent. Plus President Chen
directly criticized the opposition parties several times to
[KMT Chairman] Ma Ying-jeou's face. Everything points toward
the same direction: President Chen, for quite some time to
come, no longer seems to seek cross-party reconciliation or
a keen improvement in cross-Strait relations. This kind of
statement [i.e. the New Year speech] can probably entail
only one conclusion: Everything will continue to spin
futilely. ."

PAAL