NAME GAME DELAYS CROSS-STRAIT TOURISM

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 002411

SIPDIS

SIPDIS

DEPT FOR EAP/TC

E.O. 12958: DECL: 07/14/2016
TAGS: ECON PREL CH TW
SUBJECT: NAME GAME DELAYS CROSS-STRAIT TOURISM


Classified By: AIT Acting Deputy Director Charles E. Bennett, Reason 1.
4 d


1. (C) Summary: PRC objections to the name of the industry
organization that will represent Taiwan continue to delay
formal cross-Strait consultations on tourism. However,
informal discussions through industry organizations
continue with progress on some issues. The head of the
Travel Agent Association of Taiwan, who leads the industry
discussions, believes that the two sides will not be able
to reach an agreement by October. He expressed
disappointment with the Mainland Affairs Council's (MAC)
handling of the issue. His concerns reflect those of other
Taiwan business leaders, who have complained often that
economic priorities are a secondary consideration in the
Chen administration's cross-Strait policy. End summary.

Nomenclature Problem Persists
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2. (C) On July 13, Travel Agents Association of Taiwan
(TAAT) Chairman Yao Ta-kuang told AIT/T that nomenclature
problems continue to preclude formal cross-Strait
consultations on further opening Taiwan to PRC tourists.
Both sides have agreed to use industry-led discussions
under the "Macau model" used to negotiate charter flights,
but the PRC objected to discussions with TAAT because its
Chinese name uses the "Republic of China" nomenclature
(zhonghua minguo). The PRC formed a special organization
called the Cross-Strait Travel Exchange Association to
discuss tourism with Taiwan, and Taiwan has agreed to do
the same with similar neutral nomenclature. According to
Yao, MAC proposed to the PRC that it would call the new
organization Taiwan Cross-Strait Tourism Association
(taiwan haixia liangan guanguang xiehui). The PRC rejected
the name because it included "Taiwan." Yao said that MAC
had since proposed the name "Cross-Strait Tourism
Association" but had not yet received a reply from the PRC.
(Note: MAC Chairman Wu in a July 6 speech to the American
Chamber of Commerce in Taipei said that the PRC had
accepted the new name. However, when asked on July 14
about Wu's speech, a working level contact at MAC told
AIT/T that in fact the PRC had not yet accepted the new
name. End note.)

Discussions Ongoing
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3. (C) Yao pointed out that even as the two sides discuss
the nomenclature issue, more informal discussions continue.
Yao indicated that issues such as entry permits for PRC
tourists and mechanisms to return visitors who overstay
would not be problematic. He explained that because only
well-to-do PRC nationals would be able to afford the trip
to Taiwan, overstays would not be a major problem. Yao
believes establishing a mechanism to resolve commercial
disputes between travel agents will be more difficult to
resolve and will require formal consultations.

No Agreement Soon
--------------


4. (C) Despite continuing progress in informal discussions,
Yao is pessimistic that the two sides will be able to reach
an agreement in the near term. Yao acknowledged that
October would be a particularly opportune time to further
open tourism because of Chinese national holidays early in
the month, but said an agreement would not be possible by
then. Even though MAC's Wu indicated in April that Taiwan
would consider unilateral opening to PRC tourists after six
months and repeated the pledge in June, Yao believes that
the PRC and Taiwan authorities will not agree to further
opening without successful consultations. Yao would not
say how soon he thought the two sides would be able to
conclude consultations, but emphasized his view that
October was not a possibility.

Industry Association Frustrated with MAC
--------------


5. (C) Yao was clearly frustrated with MAC's handling of
the tourism issues. He was particularly disappointed by
its decision to propose the name "Taiwan Cross-Strait
Tourism Association" for the new organization that would
lead cross-Strait discussions. According to Yao, MAC knew
the name would be rejected by the PRC but wasted time
suggesting it anyway. He also showed econoff a background

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paper prepared by MAC with assistance from the Ministry of
Economic Affairs for Taiwan's Sustainable Economic
Development Conference titled "Globalization and Cross-
Strait Economic and Trade Relations." He complained that
it was wrong for MAC to take the lead in what is primarily
an economic issue, arguing that the Ministry of Economic
Affairs should draft this kind of document. Opening
tourism would have an immediate positive effect on Taiwan's
economy, benefiting a wide range of businesses throughout
the island, Yao said, adding that he was discouraged the
authorities hadn't moved more quickly to make it happen.

Comment - Testing Business Community's Patience
-------------- --


6. (C) Yao's complaint that the Chen administration doesn't
put economic priorities first when it comes to cross-Strait
policy has long been a common lament among Taiwan's
business community. The administration appears committed
to making progress on the tourism initiative. However,
prolonged discussions will delay the economic benefit for
Taiwan's businesses and workers and provide fresh
opportunities for the opposition to criticize the DPP
administration. End comment.
YOUNG