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