RULING DPP SEEKS TO RESTORE IMAGE

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 002483

SIPDIS

SIPDIS

E.O. 12958: DECL: 07/24/31
TAGS: PGOV TW
SUBJECT: RULING DPP SEEKS TO RESTORE IMAGE


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


1. (C) Summary: The DPP this weekend passed a series of
resolutions at its national party congress that aim to curb
corruption and burnish its reformist image. In an unexpected
and controversial move, the congress abolished the party's
formal factions, which up to now have been a primary
mechanism for coordination between competing interest groups
and individual politicians. Delegates also elected a new
Central Committee and Central Standing Committee, whose
composition observers assess expands Premier Su's influence
within the party. The congress passed resolutions to hold
leaders and family members suspected of corruption subject to
investigation and discipline, to curb the phenomenon of
"proxy members," and to modify nomination procedures for
candidates. President Chen did not attend, but addressed
party members on the eve of the congress last Friday in a
speech that reaffirmed his intent to serve out his term in
office. End Summary.

President Chen Affirms Intent to Stay
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2. (SBU) President Chen Shui-bian in a statement July 21 on
the eve of the Democratic Progressive Party (DPP) National
Congress reaffirmed his intention to remain in office,
refusing to bow to renewed calls by pro-ruling party
academics over the previous week for him to step down. Chen
said he would not attend the congress to stay true to his
earlier decision to delegate power to the Cabinet and party
leadership. Chen gave a nod to discussions that aim to
strengthen the party's role in reviewing policy, but also
implied that despite his devolution of power he will remain
involved in national identity and social issues. He said the
DDP's standing committee should be the "appropriate platform"
for discussions between the party and the Cabinet to take
place. Despite Chen's statement, the party congress failed
to take up the issue of a mechanism for party involvement in
important government decisions. DPP Chairman Yu Shyi-kun
suggested that he did want to create the misimpression that
the party was trying to take power away from Premier Su and
the government. Other commentary equated any such move as a
return to unacceptable old KMT practices.

Resolutions to Ban Factions, Weed Out Corruption
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3. (C) In a surprise move, the DPP resolved to disband its
formal factions in an effort to bolster party unity. AIT's
contacts say the resolution reflected widespread
dissatisfaction with the New Tide faction, which was viewed
as operating as a "party within the party." A last-minute
effort by the DPP caucus whip Ker Chien-ming to pass an
alternative resolution for restraining, rather than outright
banning, the factions failed. The motion to ban factions
then passed with 153 out of a total of 279 delegates voting
in favor, producing a gleeful reaction when the result was
announced. Factions, which up to now have played a crucial
role in reconciling and coordinating different interest
groups, must disband their offices and can no longer recruit
members, hold meetings, and collect membership fees. Leaders
of the New Tide, who said they would respect the decision,
nonetheless characterized the resolution as "misguided" and
"regrettable" because the party leadership mistook the
factions for the "real cause" of the party's problems.


4. (SBU) In the wake of a series of corruption scandals
involving President Chen's son-in-law and close presidential
aides, the DPP passed an anti-corruption provision aimed at
holding government leaders and their family members and close
relatives accountable to the party. The provision stipulates
that a special party committee must investigate the
president, vice president, legislators, and government
officials who are party members if they are suspected of
corruption. The provision also gives the party the right to
question members' relatives if they are implicated in
corruption scandals. Some commentators have questioned the
actual effectiveness of this resolution, particularly when it
comes to investigating family members and relatives, who may
not even be members of the DPP.


5. (SBU) Party delegates passed a resolution forbidding
members from paying membership fees on behalf of other

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members. The resolution aims to do away with the phenomenon
of "proxy members" by which some members register and pay
party dues on behalf of others and essentially build up local
networks beholden to them and influence party primaries. The
resolution stipulates that the party will expel members who
"buy" membership for others and that those caught "selling"
their membership will not be able to join the party for two
years. The party also eased previous restrictions on
candidates that would have prevented Taipei mayoral candidate
Frank Hsieh from running for president in 2008.

Premier Su Gains Some Ground
--------------


6. (C) The congress elected a new Central Standing Committee
(SC) that continues to be balanced among the now ex-factions,
but supporters of Premier Su have gained some ground and
increased their standing . Local commentators say that five
or six of the ten elected Standing Committee members
represent factions that support Su and that the new balance
of power within the Standing Committee will help Su in his
quest for the 2008 presidential nomination vis-a-vis Frank
Hsieh or other potential contenders.

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


7. (C) The resolution on party factions aside, the DPP
congress itself and President Chen's pre-congress statement
produced no major surprises. The DPP continues to be plagued
by a poor public image and internecine squabbling and it
remains to be seen if its latest efforts to reverse course
will be effective. The anti-corruption moves may provide a
short-term public relations boost, but the dissolution of
formal factions will complicate intra-party coordination and
remove an important mechanism that has served to control
competition and behavior within the party.
YOUNG