Identifier
Created
Classification
Origin
06TAIPEI1454
2006-04-27 08:44:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
American Institute Taiwan, Taipei
Cable title:
TAIWAN HEALTH MINISTER: WHO, AVIAN FLU, AND 2G
VZCZCXRO6325 RR RUEHCN RUEHGH DE RUEHIN #1454/01 1170844 ZNR UUUUU ZZH R 270844Z APR 06 FM AIT TAIPEI TO RUEHC/SECSTATE WASHDC 9896 INFO RUEHBJ/AMEMBASSY BEIJING 5120 RUEHUL/AMEMBASSY SEOUL 7795 RUEHKO/AMEMBASSY TOKYO 7668 RUEHCN/AMCONSUL CHENGDU 1221 RUEHGZ/AMCONSUL GUANGZHOU 9267 RUEHHK/AMCONSUL HONG KONG 6323 RUEHGH/AMCONSUL SHANGHAI 0078 RUEHSH/AMCONSUL SHENYANG 5179 RUCPDOC/DEPT OF COMMERCE WASHDC RUEAUSA/DEPT OF HHS WASHDC RUEHGV/USMISSION GENEVA 1738
UNCLAS SECTION 01 OF 03 TAIPEI 001454
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EAP/RSP/TC AND EB/TPP/BTA, STATE PASS USTR FOR
ALTBACH, WINELAND, STRATFORD, USDOC FOR
ITA/MAC/AP/OPB/TAIWAN/JDUTTON, HHS FOR EVANDER, GENEVA FOR
DHOHMAN
E.O. 12958: N/A
TAGS: ETRD ECON TW
SUBJECT: TAIWAN HEALTH MINISTER: WHO, AVIAN FLU, AND 2G
HEALTH SYSTEM
UNCLAS SECTION 01 OF 03 TAIPEI 001454
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EAP/RSP/TC AND EB/TPP/BTA, STATE PASS USTR FOR
ALTBACH, WINELAND, STRATFORD, USDOC FOR
ITA/MAC/AP/OPB/TAIWAN/JDUTTON, HHS FOR EVANDER, GENEVA FOR
DHOHMAN
E.O. 12958: N/A
TAGS: ETRD ECON TW
SUBJECT: TAIWAN HEALTH MINISTER: WHO, AVIAN FLU, AND 2G
HEALTH SYSTEM
1. (U) Summary: Minister of Health Hou Sheng-mou told AIT
Director Young that preparing for Avian Influenza is the top
priority of Taiwan's Department of Health (DOH). Taiwan is
eager to participate meaningfully in WHO meetings and to work
with the U.S. to respond to global health emergencies. DOH
wants to help resolve pharmaceutical industry concerns about
pricing policy. Minister Hou would like to meet Health and
Human Services Secretary Leavitt in Geneva and find an
opportunity for Taiwan CDC Director General Kuo to meet with
HHS counterparts to discuss Avian Flu and pharmaceutical
policy. Upcoming TIFA meetings are a good chance to raise
IPR and market access issues. Action Request para 8. End
Summary.
--------------
Avian Flu Taiwan's Top Concern
--------------
2. (U) Director Young (accompanied by Econ Chief and Econoff
(notetaker)) paid an introductory call on Minister of Health
Hou Sheng-mou April 24. Hou was accompanied by Counselor
Hsiao Mei-ling, CDC Director General Steve Kuo, and
International Cooperation Director Peter Chang. The Director
congratulated Taiwan on its preparations for Avian Influenza
(AI) and noted Taiwan Center for Disease Control (CDC)
Director General Steve Kuo has been an excellent interlocutor
on emergency preparedness issues. Minister Hou thanked AIT
for facilitating cooperation between the US and Taiwan CDCs
during SARS and noted that he had raised the possibility of
increased cooperation during Congressman John Linder's (R-GA)
recent visit to Taiwan. AI preparations remain Taiwan's top
health priority, said Hou, and, although he hoped the warm
weather will limit the possibilities of an outbreak, he was
eager to continue work to prevent any cases in Taiwan.
--------------
Taiwan's International Profile
--------------
3. (U) The Director encouraged Taiwan to continue
participating in World Health Organization (WHO) sponsored
technical meetings and to demonstrate that it can make a
meaningful contribution. Hou agreed that meaningful
participation was Taiwan's goal in these meetings but noted
that Taiwan had still been unable to attend one third of the
meetings due to late notice or other problems. Taiwan would
like to share its experience and cooperate with the U.S. and
others in time of crisis, Hou said. Taiwan sent medical
supplies and teams to Indonesia after the tsunami and
contributed to Hurricane Katrina relief as well. The
Director praised Taiwan's contributions and suggested that
relief efforts were a good way to demonstrate Taiwan's sense
of international responsibility. He encouraged Taiwan to
unilaterally agree to the WHO International Health
Regulations.
--------------
Still Feeling the Heat on Beef
--------------
4. (U) Hou turned to U.S. beef imports, lamenting that in
spite of popular support for the decision to re-open Taiwan's
market, DOH was still facing pressure from legislators to
reverse itself. Hou asked for additional support from U.S.
experts to demonstrate that U.S. beef is safe. Young said
the U.S. position was that food safety decisions should be
based on sound science and praised Taiwan for its transparent
and science-based decision making process. Hou asked that
the U.S. prominently announce any Japanese decision to reopen
its market. He also suggested that DOH's move to reopen
Taiwan's market contributed to the Legislative Yuan (LY)
decision to freeze the DOH budget. Hou said good news from
Japan or Korea could ease the pressure here.
--------------
TAIPEI 00001454 002 OF 003
Pharma Policy Key to TIFA Talks
--------------
5. (U) The Director then raised pharmaceutical policy
issues. Makers of innovative pharmaceutical products are
concerned that pricing policies discriminate in favor of
generic drugs, to the detriment of Taiwan patients. Hou
responded that Taiwan's health care system is modeled on the
Canadian system. As such, government needed to find the
balance between encouraging the best treatments and keeping
costs in check. The Director replied that research and
development relies on innovator's ability to market their
products and encouraged Taiwan to do more to encourage
innovative products. Deputy USTR Bhatia will participate in
the May Trade and Investment Framework Agreement (TIFA)
meetings and it is important for DOH to be engaged.
--------------
Taiwan's Health Care Reforms
--------------
6. (U) Hou explained that Taiwan's health care system is in
need of reforms. "Global budgets" and "balanced billing"
will be an important part of Taiwan's "second generation
health care system," said Hou. Global budgeting will cap the
amount each hospital can be reimbursed by the National Health
Insurance (NHI). Balanced billing will reduce costs by
capping the maximum reimbursement for each treatment.
Patients can then purchase innovative drugs or medical
devices for an additional charge. This will allow the NHI to
save money while speeding up the entry of new drugs and
devices onto the Taiwan market, according to Hou. CDC DG Kuo
added that this could be good news for the pharmaceutical
industry and would encourage more market flexibility. DOH
Counselor Hsiao acknowledged that U.S. companies opposed the
idea, but suggested Taiwan could address their concerns after
the new pharmaceutical law had been passed. Hou added that
DOH believes this will be a good system to get drugs into the
Taiwan market quickly and that Taiwan is looking to Korea for
advice on how to carry out reforms.
--------------
Making Biotech Bigger
--------------
7. (U) The Director asked for DOH's view on Biotech issues.
Hou responded that Taiwan policy is to encourage the
development of biotech and was directing as much investment
as possible to the field. The National Science Council is
overseeing the creation of a biotech science park near
Hsinchu. Counselor Hsiao added that Taiwan's National
Institute of Health (NIH) had already moved to a location
nearby. On DOH's stance toward genetically modified
organisms (GMO),Hou said his main concern was only to get
information into the hands of consumers. Hsaio noted that
some groups opposed GMO products, but that the level of
protest was insignificant compared to Japan or the European
Union.
--------------
Hou/Kuo Meeting with HHS Sec Leavitt?
--------------
8. (U) International Cooperation Director Peter Chang noted
that Minister Hou had met with U.S. Health and Human Services
Secretary Mike Leavitt in August 2005. According to Chang,
SIPDIS
both sides agreed to pursue future meetings. Chang asked if
it was possible to arrange a meeting between Minister Hou and
Secretary Leavitt on the margins of the WHO meeting in Geneva
SIPDIS
in May or for CDC DG Kuo to meet with Secretary Leavitt in
Washington to discuss AI and pharmaceutical policy.
9. ACTION REQUEST: AIT/T would appreciate HHS views on the
possibility of a meeting between Minister Hou and Secretary
Leavitt in Geneva, as well as CDC DG Kuo with counterparts in
TAIPEI 00001454 003 OF 003
Washington.
10. (SBU) Comment: Post-SARS, AIT/T has had excellent
cooperation with DOH on crisis prevention and management.
This good feeling has spilled over into some aspects of our
trade relationship, but DOH remains a very conservative
organization filled with medical doctors turned bureaucrats
who are unaccustomed to consultation, cooperation, and
openness. TIFA discussions will present us with an
opportunity to strongly push for additional IPR protection
for pharmaceuticals, fair market access, and a level
regulatory playing field for U.S. health and medical products
and services. End Comment.
YOUNG
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EAP/RSP/TC AND EB/TPP/BTA, STATE PASS USTR FOR
ALTBACH, WINELAND, STRATFORD, USDOC FOR
ITA/MAC/AP/OPB/TAIWAN/JDUTTON, HHS FOR EVANDER, GENEVA FOR
DHOHMAN
E.O. 12958: N/A
TAGS: ETRD ECON TW
SUBJECT: TAIWAN HEALTH MINISTER: WHO, AVIAN FLU, AND 2G
HEALTH SYSTEM
1. (U) Summary: Minister of Health Hou Sheng-mou told AIT
Director Young that preparing for Avian Influenza is the top
priority of Taiwan's Department of Health (DOH). Taiwan is
eager to participate meaningfully in WHO meetings and to work
with the U.S. to respond to global health emergencies. DOH
wants to help resolve pharmaceutical industry concerns about
pricing policy. Minister Hou would like to meet Health and
Human Services Secretary Leavitt in Geneva and find an
opportunity for Taiwan CDC Director General Kuo to meet with
HHS counterparts to discuss Avian Flu and pharmaceutical
policy. Upcoming TIFA meetings are a good chance to raise
IPR and market access issues. Action Request para 8. End
Summary.
--------------
Avian Flu Taiwan's Top Concern
--------------
2. (U) Director Young (accompanied by Econ Chief and Econoff
(notetaker)) paid an introductory call on Minister of Health
Hou Sheng-mou April 24. Hou was accompanied by Counselor
Hsiao Mei-ling, CDC Director General Steve Kuo, and
International Cooperation Director Peter Chang. The Director
congratulated Taiwan on its preparations for Avian Influenza
(AI) and noted Taiwan Center for Disease Control (CDC)
Director General Steve Kuo has been an excellent interlocutor
on emergency preparedness issues. Minister Hou thanked AIT
for facilitating cooperation between the US and Taiwan CDCs
during SARS and noted that he had raised the possibility of
increased cooperation during Congressman John Linder's (R-GA)
recent visit to Taiwan. AI preparations remain Taiwan's top
health priority, said Hou, and, although he hoped the warm
weather will limit the possibilities of an outbreak, he was
eager to continue work to prevent any cases in Taiwan.
--------------
Taiwan's International Profile
--------------
3. (U) The Director encouraged Taiwan to continue
participating in World Health Organization (WHO) sponsored
technical meetings and to demonstrate that it can make a
meaningful contribution. Hou agreed that meaningful
participation was Taiwan's goal in these meetings but noted
that Taiwan had still been unable to attend one third of the
meetings due to late notice or other problems. Taiwan would
like to share its experience and cooperate with the U.S. and
others in time of crisis, Hou said. Taiwan sent medical
supplies and teams to Indonesia after the tsunami and
contributed to Hurricane Katrina relief as well. The
Director praised Taiwan's contributions and suggested that
relief efforts were a good way to demonstrate Taiwan's sense
of international responsibility. He encouraged Taiwan to
unilaterally agree to the WHO International Health
Regulations.
--------------
Still Feeling the Heat on Beef
--------------
4. (U) Hou turned to U.S. beef imports, lamenting that in
spite of popular support for the decision to re-open Taiwan's
market, DOH was still facing pressure from legislators to
reverse itself. Hou asked for additional support from U.S.
experts to demonstrate that U.S. beef is safe. Young said
the U.S. position was that food safety decisions should be
based on sound science and praised Taiwan for its transparent
and science-based decision making process. Hou asked that
the U.S. prominently announce any Japanese decision to reopen
its market. He also suggested that DOH's move to reopen
Taiwan's market contributed to the Legislative Yuan (LY)
decision to freeze the DOH budget. Hou said good news from
Japan or Korea could ease the pressure here.
--------------
TAIPEI 00001454 002 OF 003
Pharma Policy Key to TIFA Talks
--------------
5. (U) The Director then raised pharmaceutical policy
issues. Makers of innovative pharmaceutical products are
concerned that pricing policies discriminate in favor of
generic drugs, to the detriment of Taiwan patients. Hou
responded that Taiwan's health care system is modeled on the
Canadian system. As such, government needed to find the
balance between encouraging the best treatments and keeping
costs in check. The Director replied that research and
development relies on innovator's ability to market their
products and encouraged Taiwan to do more to encourage
innovative products. Deputy USTR Bhatia will participate in
the May Trade and Investment Framework Agreement (TIFA)
meetings and it is important for DOH to be engaged.
--------------
Taiwan's Health Care Reforms
--------------
6. (U) Hou explained that Taiwan's health care system is in
need of reforms. "Global budgets" and "balanced billing"
will be an important part of Taiwan's "second generation
health care system," said Hou. Global budgeting will cap the
amount each hospital can be reimbursed by the National Health
Insurance (NHI). Balanced billing will reduce costs by
capping the maximum reimbursement for each treatment.
Patients can then purchase innovative drugs or medical
devices for an additional charge. This will allow the NHI to
save money while speeding up the entry of new drugs and
devices onto the Taiwan market, according to Hou. CDC DG Kuo
added that this could be good news for the pharmaceutical
industry and would encourage more market flexibility. DOH
Counselor Hsiao acknowledged that U.S. companies opposed the
idea, but suggested Taiwan could address their concerns after
the new pharmaceutical law had been passed. Hou added that
DOH believes this will be a good system to get drugs into the
Taiwan market quickly and that Taiwan is looking to Korea for
advice on how to carry out reforms.
--------------
Making Biotech Bigger
--------------
7. (U) The Director asked for DOH's view on Biotech issues.
Hou responded that Taiwan policy is to encourage the
development of biotech and was directing as much investment
as possible to the field. The National Science Council is
overseeing the creation of a biotech science park near
Hsinchu. Counselor Hsiao added that Taiwan's National
Institute of Health (NIH) had already moved to a location
nearby. On DOH's stance toward genetically modified
organisms (GMO),Hou said his main concern was only to get
information into the hands of consumers. Hsaio noted that
some groups opposed GMO products, but that the level of
protest was insignificant compared to Japan or the European
Union.
--------------
Hou/Kuo Meeting with HHS Sec Leavitt?
--------------
8. (U) International Cooperation Director Peter Chang noted
that Minister Hou had met with U.S. Health and Human Services
Secretary Mike Leavitt in August 2005. According to Chang,
SIPDIS
both sides agreed to pursue future meetings. Chang asked if
it was possible to arrange a meeting between Minister Hou and
Secretary Leavitt on the margins of the WHO meeting in Geneva
SIPDIS
in May or for CDC DG Kuo to meet with Secretary Leavitt in
Washington to discuss AI and pharmaceutical policy.
9. ACTION REQUEST: AIT/T would appreciate HHS views on the
possibility of a meeting between Minister Hou and Secretary
Leavitt in Geneva, as well as CDC DG Kuo with counterparts in
TAIPEI 00001454 003 OF 003
Washington.
10. (SBU) Comment: Post-SARS, AIT/T has had excellent
cooperation with DOH on crisis prevention and management.
This good feeling has spilled over into some aspects of our
trade relationship, but DOH remains a very conservative
organization filled with medical doctors turned bureaucrats
who are unaccustomed to consultation, cooperation, and
openness. TIFA discussions will present us with an
opportunity to strongly push for additional IPR protection
for pharmaceuticals, fair market access, and a level
regulatory playing field for U.S. health and medical products
and services. End Comment.
YOUNG