DIRECTOR,S INTRODUCTORY MEETING WITH VICE

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 001544

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E.O. 12958: DECL: 05/02/2031
TAGS: PGOV PREL TW
SUBJECT: DIRECTOR,S INTRODUCTORY MEETING WITH VICE
PRESIDENT ANNETTE LU, APRIL 28, 2006

Classified By: AIT Director Stephen M. Young, Reasons: 1.4 (b/d)


1. (C) Summary: Hopefully the halving of the number of
legislators in 2007 will improve the "quality" of the
legislature, Vice President Annette Lu told the Director
during their introductory meeting on April 28. As could be
expected, the outspoken Lu criticized both KMT Chairman Ma
Ying-jeou and Honorary Chairman Lien Chan, Ma for being a
"movie star" rather than a national leader, and Lien for
"defecting" to China. Lu argued that China's "soft power"
economic tactics are even more threatening than China's
missiles aimed at Taiwan. Lu also highlighted her work with
the Democratic Pacific Union, including its founding of a
Pacific Center for Disaster Reduction. End Summary.

Mission Impossible: Constitutional Reform
--------------


2. (C) During an introductory meeting on April 28, Taiwan
Vice President Annette Lu told the Director, "I am supposed
to be silent, as a vice president, but I continue to maintain
my commitment to be as outspoken as possible." Lu said that
she and President Chen Shui-bian both oppose calls from some
legislators to increase the size of the Legislative Yuan
(LY),which will be halved to only 113 seats in 2007. Lu
called the current crop of legislators "very incompetent,"
and expressed optimism that halving the number of seats will
improve the LY's quality and professionalism. Lu also
suggested that the reduction in seats will make it very
difficult for small political parties to survive, possibly
leading to the establishment of a two-party political system
and a more mature, consolidated democracy.


3. (C) From a practical point of view, Lu observed,
constitutional reform will be very difficult between now and

2008. However, President Chen's calls for grass-roots work
on constitutional drafts are important as a mechanism to
educate Taiwan's people about constitutionalism, particularly
since the 1947 ROC constitution was brought from China and
had "nothing to do with Taiwan." Repeating an analogy she
used in a recent press interview, Lu said, "The constitution
we have now is like a 'grandma's pajamas' which are now too
old and dingy for her little granddaughter. If we can afford
it, we should buy a new pair of pajamas."

"Lucky" Ma Ying-jeou
--------------


4. (C) Lu noted that, despite pressure on Kuomintang (KMT)
Chairman Ma Ying-jeou on the arms procurement issue during
his visit to the U.S. in late March, Ma had not changed his
position since returning to Taiwan. Lu attributed Ma's
political success to "luck," particularly, the media favor he
received beginning from his return from law school at Harvard
in the early 1980s. However, Lu stressed, what Taiwan needs
is a national leader, not a "movie star." Lu suggested that
the DPP should challenge Ma's loyalty to Taiwan in the run-up
to the 2008 presidential election, adding that it is up to Ma
to demonstrate that he really is loyal to Taiwan.


5. (C) Lu was even more critical in assessing Honorary KMT
Chairman Lien Chan's behavior during his mid-April visit to
China. Lu questioned why Lien did not make any positive
remarks about Taiwan, adding that his comments about
President Chen "made her sick." "Lien just defected to
China, simply because he couldn't make his dream of becoming
Taiwan's president come true."

Cross-Strait Relations
--------------


6. (C) Asked about cross-Strait economic relations and the
PRC military threat, Lu showed the Director a series of
powerpoint presentations aimed at demonstrating that China's
"soft power" economic tactics, which are seducing the Taiwan
people, are even more threatening than missiles. According
to Lu's statistics, Taiwan's FDI in China is more than 50
percent of GDP, a much higher percentage than for South Korea
or other countries. The Taiwan government cannot control or

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get revenue from these funds, Lu pointed out. Lu also
stressed the movement from Taiwan to China of notebook
computer manufacture. According to Lu, China is engaged in
six types of war with Taiwan: military, economic, diplomatic,
psychological, media, and legal. Taiwan needs more U.S.
support in all of these areas, she said. The Director
explained that the U.S. is pressing China to be a responsible
stakeholder in the international community. Lu questioned
whether China is trustworthy.

Lu's Work in Democracy Building
--------------


7. (C) Lu discussed her work with the Democratic Pacific
Union (DPU) in promoting three common values of the "DPP":
democracy, peace, and prosperity. Director Young told Lu
that Taiwan should look for ways to promote its model of
democracy quietly. Lu responded, "We have been quiet long
enough." Lu noted that the DPU is starting a Pacific
Congressional Caucus (PCC),which will have its inaugural
meeting in summer 2006 in Seoul, South Korea. The PCC will
be chaired by LY Speaker Wang Jin-pyng, and its first session
will focus on congressional reform.


8. (C) Lu noted that the DPU is in the process of
establishing a Pacific University Caucus, which will promote
academic exchanges and sharing of academic resources among
DPU member countries. Lu also outlined other areas of work
for the DPU, including providing academic scholarships for 20
graduate students at Taiwan universities, and the
establishment of a Pacific Center for Disaster Reduction
(PCDR),following the late 2005 tsunami disaster. The PCDR
plans to bring together 30 foreign experts soon to share
experiences on regional disasters and help to form a regional
disaster-monitoring network. In the future, the DPU wants to
establish separate institutes focusing on democracy, peace
and prosperity.


9. (C) Director Young cautioned that Taiwan needs to tread
carefully in promoting democracy overseas, so that its
initiatives will not be misinterpreted as efforts to promote
Taiwan independence. Lu argued that the PRC should not pay
so much attention to Taiwan. "China's so big, while we are
so small. Why are they afraid of us? Why aren't they more
confident of their own position?" According to Lu, the DPU
never discusses China, as China does not qualify for
membership.

Combating DPP Corruption
--------------


10. (C) Lu said she felt ashamed about allegations of DPP
corruption, even though she personally believes that 99
percent of DPP members are clean and that some allegations
are untrue. Lu acknowledged that the Chen administration has
not done a good enough job in wiping out corruption, adding
that some of the Taiwan people were polluted by the practices
of the KMT when it was the ruling party.


11. (C) As an example of a possible measure to combat
corruption, Lu noted a campaign to increase the requirements
to work as a lawyer or a judge in Taiwan. Under this plan
and starting in 2008, lawyers will be required to obtain both
a college degree and a masters degree in law prior to taking
the Taiwan bar exam. After 2010 Judges will have to have
served at least three years as a lawyer or attorney prior to
joining the bench.

Comment
--------------


12. (C) Lu appeared more resigned now to her marginalization
in the Chen administration than she had been five years ago
when the Director last saw her. That said, in private -- and
occasionally in public -- she remains an outspoken veteran of
opposition days, despite her dramatically changed political
circumstances since 2000. The question is: is anybody really
listening?
YOUNG