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 TAIPEI 00000261 002 OF 003 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 TAIPEI 00000261 003 OF 003 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