NO COMPROMISE FROM DPP LEGISLATORS

C O N F I D E N T I A L TAIPEI 001652 SIPDIS SIPDIS STATE PASS USTR STATE FOR EAP/TC, USTR FOR ALTBACH, E.O. 12958: DECL: 05/15/2010 TAGS: PINR ECON PREL PGOV TW SUBJECT: NO COMPROMISE FROM DPP LEGISLATORS Classified By: AIT DIRECTOR STEPHEN M. YOUNG FOR REASONS 1.5 (b),(d) ¶1. (C) Summary: DPP legislators expressed a range of views to the AIT Director on May 10, including that if KMT Chairman Ma Ying-jeou were elected president he would surrender Taiwan to the PRC. The legislators also discussed corruption, cross-Strait trade, and the recent transit flap. End Summary. ¶2. (C) AIT Director Young hosted a lunch on May 10 for DPP Legislators Ker Chien-ming (DPP LY Caucus Chairman),Hong, Chi-chang (LY Economic & Energy Committee),Yu Jan-daw (Co-chairman of LY Finance Committee),Winston Dang (LY Environment & Social Welfare Committee),Charles Chiang Chao-I (LY Finance Committee) and Chuang Suo-han (LY Organic Committee). Ma Too Chinese -------------- ¶3. (C) Both Chuang and Chiang told the Director they were concerned that KMT Chairman Ma Ying-jeou is too pro-China. Chiang said that Ma had a "Chinese" outlook and identified with China rather than Taiwan. Chuang warned that if Ma were elected president in 2008, Ma would surrender Taiwan to the PRC. Hong disagreed saying that Taiwan's electorate would never tolerate a sell-out to the PRC. However, Chiang said that Ma would not publicly admit his intentions, but if elected would put Taiwan on a course that would end Taiwan's independent political status from the PRC. Media and Corruption -------------- ¶4. (C) The legislators blamed the many allegations of DPP corruption on pro-KMT and sensationalized media reporting. Chuang and Chiang complained that another factor was that most law enforcement officials were pro-KMT. Chiang pointed out that according to Transparency International, Taiwan's government was getting better, not worse. According to Chuang, the PRC was spending enormous amounts of money to subsidize and support pro-China media in Taiwan. Thus even though these views did not receive much popular support, he claimed, they dominated the media. (We think this claim is unsubstantiated.) Blue Collar Interests -------------- ¶5. (C) According to the DPP legislators, the core of DPP support are blue-collar workers in central and southern Taiwan that are hurt most by industrial relocation to China. To be responsible to their constituents, the DPP had to be very cautious about liberalizing cross-Strait trade and investment. Chiang said that the reason for the 300,000 foreign workers in Taiwan is not that Taiwan people don't want to do the work, but because companies can save money by hiring foreign workers. The legislators agreed that entry restrictions on PRC nationals working for multinational corporations should be relaxed on a gradual basis. Transit Issue -------------- ¶6. (C) The DPP legislators agreed that the U.S.-Taiwan relationship remains firm after the recent flap over President Chen's transit of the United States. Yu said Taiwan could understand that the timing of the transit was bad because the United States needed support from China on Iran and other issues; but the U.S. should look at the results of this course of action and ask itself: did it win China's support? ¶7. (C) Comment: The discussion with and among the DPP legislators was animated and candid. While there was a range of opinions on just how bad the opposition parties are, the discussion left little reason to hope that the deadlock in the LY will end any time soon. YOUNG