NEW ECON CABINET IN TAIWAN

UNCLAS SECTION 01 OF 03 TAIPEI 000261

SIPDIS

SIPDIS

STATE PASS USTR
STATE FOR EAP/TC,
USTR FOR WINTER AND WINELAND,
TREASURY ALSO PASS TO FEDERAL RESERVE/BOARD OF GOVERNORS,
AND SAN FRANCISCO FRB/TERESA CURRAN

E.O. 12958: N/A
TAGS: EINV ETRD ECON PREL TW
SUBJECT: NEW ECON CABINET IN TAIWAN

REF: TAIPEI


1. This cable supplements ref A report on
Taiwan's new cabinet. It provides background information
on the new economic ministers in the cabinet.

New Economic Cabinet Officials
--------------


2. (U) New economic/financial cabinet members appointed in
Taiwan's latest cabinet reshuffle include:

--Vice Premier: Tsai Ing-wen replaces Wu Rong-I;
--Executive Yuan (EY) Secretary General: Liu Yu-shan
replaces Cho Jung-tai;
--Minister of Economic Affairs: Morgan Hwang (Ing-san)
replaces Ho Mei-yueh;
--Finance Minister: Joseph Lyu (Jye-cherng) replaces Lin
Chuan;
--Minister of Transportation and Communications: Kuo Yao-
chi replaces Lin Ling-san;
--National Science Council Chairman: Chen Chien-jen
replaces Wu Maw-kuen;
--Public Construction Commission (PCC) Chairman: Wu Che-
cheng replaces Kuo Yao-chi
--Council of Agriculture (COA) Chairman: Su Chia-chuan
replaces Lee Ching-lung;
--Minister Without Portfolio: Ho Mei-yueh

EY Secretary General (SG) Liu Yu-shan
--------------


3. (U) Prior to his appointment as Deputy SG of the EY over
six years ago, Liu, 62, was an economic planning officer
for nearly 30 years. He joined the Urban and Housing
Development Department (UHDD) of the Council for Economic
Planning and Development (CEPD) as a specialist right after
he earned his first master's degree in urban planning from
National Chungshing University in 1970. Subsequently, he
was promoted to Deputy Director of UHDD in 1983, CEPD SG in
1991, and Vice Chairman of CEPD in 1996. He was appointed
Deputy SG of the EY in 1999. Liu earned his second
master's degree in systems engineering from the Asian
Institute of Technology (Bangkok) in 1974 and a doctorate
in civil engineering from National Chengkung University in

1985. Of the new cabinet members with economics
backgrounds, Liu is one of two who is not a member of the
ruling Democratic Progressive Party (DPP). His KMT Party
membership expired in 2003 because he did not renew his
registration as required by the party. Liu has
demonstrated an ability to coordinate interagency
operations. He is easy-going and dedicated to his family.
He enjoys swimming, golfing and hiking with his wife. Speaks
English at the 3-plus level.

Minister of Economic Affairs Morgan Hwang (Ing-san)
-------------- --------------


4. (U) Hwang, 65, has served as Chairman of two state-owned
enterprises over the past four years. In 2002, two
prominent business leaders, Jeffrey Koo, Sr. and Chinese
National Federation of Industries Chairman Hsu Sheng-
hsiung, recommended him to the DPP Government for the
position of Chairman of Taiwan Tobacco and Liquor
Corporation (TTLC). Hwang joined the DPP upon taking that
position. In early 2005, he was transferred to Chairman of
Taiwan Power Company (TPC). TPC reported NT$7 billion of
pre-tax profits that year, even though the firm had
projected a loss of NT$6.1 billion when planning in its
2005 budget. Prior to joining TTLC, Hwang taught business
beginning in 1987. He was a department chairman at National

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Chungshing University and then Dean of the Business College
at National Taipei University. Prior to 1987, Hwang had a
20-year career in business, serving as Vice President of
Marketing for Sampo, one of Taiwan's largest household
electrical appliance firms, and President of Chunghwa Color
Printing Company. Hwang earned a bachelor's degree in
economics from National Chungshing University and an MBA
and Ph. D. from National Chengchi University. Speaks English
at the 4-plus level.

Finance Minister Joseph Lyu (Jye-cherng)
--------------


5. (U) Lyu, 50, has been working in state-owned enterprises
for the past six years. After the DPP came to power in
2000, Lyu took positions as board director for two state-
owned enterprises, Chunghwa Telecom and China Airlines. He
was appointed Senior Executive Vice President of Chunghwa
Telecom in 2001. In 2002, Lyu became Vice Chairman of the
Commission of National Corporations, an agency that
oversees state-owned manufacturing enterprises. Then in
2003, he was appointed President of the state-owned Land
Bank of Taiwan, the largest bank on the island. He was
promoted to Chairman in 2004. In addition, Lyu has been
active in Taiwan's efforts to build foreign relations,
organizing the Taiwan-Russia Association and the Taiwan-
Mongolia Association. Prior to 2000, Lyu was a senior
executive at several foreign banks in Taipei, including BNP
Paribas, New York Bank, and KBC Bank N.V. Lyu belongs to
the Presbyterian Church and is a DPP member. He earned a
bachelor's degree in financial management from National
Chengchi University and an MBA from Northwest University.
Speaks excellent English.

Minister of Transportation & Communications Kuo Yao-chi
-------------- --------------


6. (U) Kuo, 50, has been a dedicated follower of President
Chen Shui-bian since he became Mayor of Taipei in 1994.
Chen appointed her Chief Secretary of the Taipei Municipal
Bureau of Public Works in February 1995 and then Director
of the Taipei Municipal Department of Public Housing in
October that year. When Chen was elected President in
2000, Kuo was named Director of the President's Public
Affairs Office. She was promoted to Chairman of the Public
Construction Commission in early 2002 and also served as
Chairman of the September 21 Earthquake Reconstruction
Commission later that year. She is one of the few second-
generation "mainlanders" (with parents born in China) to
join the DPP Party. She earned a bachelor's degree in
urban planning from National Chengkung University and a
master's degree in the same field at the University of
London. She is hard working, enjoys singing, and is an
accomplished pianist. Not comfortable in English.

National Science Council Chairman Chen Chien-jen
-------------- ---


7. (U) Chen, 55, returns to government after one year of
teaching at the Medical School of National Taiwan
University (NTU). From early 2003 to 2005, Chen was
Minister of the Department of Health (DOH),appointed at
the start the SARS crisis. He led almost single-handedly
a rapid improvement in the SARS response of DOH, Taiwan CDC,
and the Taiwan hospital system. Chen previously worked at
the
National Science Council, starting in 1997 as Director of
the Biology Development Department and then Vice Chairman
of the Council from 2000. Chen's prior experience includes
teaching and research at Academia Sinica and National
Taiwan University as well as Johns Hopkins, Tulane and

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Columbia Universities in the United States. Chen is
neither a member of the DPP nor the KMT. However, his
father, Chen Shin-an, was a prominent KMT member and
Kaohsiung County Magistrate in the 1970s. Chen earned a
bachelor's degree in animal science from NTU, a master's
degree in public health from National Taiwan University and
a doctorate in epidemiology from Johns Hopkins. Speaks
excellent English.

PCC Chairman Wu Che-cheng
--------------


8. (U) Until the December 2005 local elections in Taiwan,
Wu, 55, was Senior Deputy Magistrate of Taipei County, first
under DPP County Magistrate Su Tseng-chang and then under Su's
appointed successor Lin Hsi-yan. He has been teaching at
National Taipei University since the KMT candidate, Chou
Shih-wei, won the county magistrate elections. Wu was a
close advisor to Su, serving as Director of the County
Department of Public Construction Works, Chief Secretary,
and finally Senior Deputy Magistrate. Wu was highly
regarded for his work to address flooding problems and the
construction of riverside parks along the Tamshui River.
Not comfortable in English.

COA Chairman Su Chia-chuan
--------------


9. (U) Su, 49, was appointed as Interior Minister in

2004. Su served as Pingtung County Magistrate for
seven years. His political career began when he joined
anti-KMT movement 22 years ago. In 1986, he was elected to
the National Assembly and chairman of the DPP's Pingtung
County chapter. Su was elected to the Legislative Yuan in
1993 and Pingtung County Magistrate in 1997. He won
reelection in 2001. Because Pingtung County is one of
Taiwan's major farming regions, Su has significant
experience in agricultural policy. Su graduated from
National Taiwan Ocean University with a bachelor's degree
in fishing and aquaculture. He also earned a master's
degree in public administration from National Sun Yat-sen
University. Press reports indicate Su had been torn between
accepting the post of COA chairman and seeking the DPP
candidacy in this December's election for Kaohsiung mayor.
Not comfortable in English.

Minister Without Portfolio Ho Mei-yueh
--------------


10. (U) Ho, 55, was appointed as Minister of Economic
Affairs in 2004. Before that, she served as Vice Chairman of
the Council for Economic Planning and Development for four
years. Previously, Ho spent three years as Director of the
EY's Fifth Department (in charge of economic issues). Ho
came to the EY with 22 years of experience working at the
Industrial Development Bureau (IDB),where she rose from a
junior officer to Deputy Director General. She joined the
DPP Party two years ago. Ho earned a bachelor's degree in
agricultural chemistry at National Taiwan University.
Speaks English at the 4 level.
KEEGAN