FORMER PRESIDENT LEE TENG-HUI ON DOMESTIC

C O N F I D E N T I A L SECTION 01 OF 03 TAIPEI 003554

SIPDIS

SIPDIS

E.O. 12958: DECL: 10/17/2031
TAGS: PGOV TW
SUBJECT: FORMER PRESIDENT LEE TENG-HUI ON DOMESTIC
POLITICS, ARMS PROCUREMENT, AND JAPAN


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


1. (C) Summary: During a meeting with the Director and DDIR
on October 16, former President Lee Teng-hui attributed
problems in Taiwan's democracy, including poor governance and
corruption, to the lack of political education in the
democratic process and values of the island. Lee criticized
President Chen for launching a counter-demonstration rather
than making reforms to respond to the demonstrators
protesting against him over corruption issues. President
Chen will not step down, predicted Lee, and he stressed his
own need to remain neutral toward Chen to avoid aggravating
the political confrontation. Lee deplored the ongoing
standoff between the pan-Blue and pan-Green political
groupings. He suggested that Taiwan's dual-head government
system would be more functional if the President appointed an
opposition Kuomintang (KMT) premier, such as LY Speaker Wang
Jin-pyng. End Summary.


2. (C) During a wide-ranging meeting with the Director and
DDIR on October 16, former President Lee Teng-hui expressed
concern that, although Taiwan is now democratic, its
political leaders lack the qualities needed for a democratic
system to function effectively. These qualities could be
developed through education, Lee suggested. He expressed
hope that, prior to Taiwan's 2008 presidential election, the
U.S. would be willing to help Taiwan by arranging training
programs for prospective presidential candidates at the
Kennedy School of Government, Congress, and various USG
agencies. In the course of the discussion, Lee repeated this
idea several times. While politely promising to consider
this idea, the Director pointed to some obvious difficulties
in getting such top officials as Mayor Ma and Premier Su to
go on extended trips to the U.S.


3. (C) The current prevalence of high-level corruption
problems underscores that Taiwan's leaders are lacking in
character and integrity, and do not understand the need for
self-restraint in a democratic system, Lee observed. Before
the DPP came to power, Lee maintained, while there was
corruption at lower levels, top leaders did not dare to be
corrupt. Asked about People First Party (PFP) Chairman James
Soong's involvement in Shih Ming-te's anti-Chen campaign, Lee
appeared to contradict his claim on past corruption only
being at lower levels in insisting that Soong was very
corrupt when he was governor of Taiwan Province in the 1990s.
An opportunistic politician, Soong has latched on to Shih
Ming-te's movement to advance his own political interests,
Lee suggested.


4. (C) Shih Ming-te's movement underscores the fact that
people are tired of corruption, Lee continued. When there
were demonstrations in the past, Lee said, he would meet with
the protest leaders, be responsive to their concerns, and
take steps to reform. President Chen's approach was quite
different. Rather than responding to the people's legitimate
anger, he insisted that the ruling Democratic Progressive
Party mobilize for a large counter-demonstration on September

16. The DPP is the government; why was it demonstrating, Lee
asked rhetorically. Chen, who wanted the
counter-demonstration in order to protect his own position,
had grown very angry when Premier Su had opposed the idea,
Lee noted.


5. (C) Despite pressure, President Chen will hold tightly
onto his power and will not step down, Lee predicted. Noting
that the Taiwan Solidarity Union (TSU) again took a neutral
position by abstaining during the second Legislative Yuan
(LY) vote to recall President Chen, Lee questioned why the
DPP had chosen to boycott a motion that it should have
strongly opposed.


6. (C) Taiwan's constitution prescribes a system of dual
leadership, and the president needs to respect the premier,

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Lee argued, adding that he had not told the premier what to
do when he was president. The role of the president, who is
above the five branches of government (including the
Executive Yuan under the Premier),is to work through the
National Security Council process to resolve disputes between
the different branches of government. The current political
standoff should be addressed through the LY, Lee suggested.
Lee noted that he had proposed that LY Speaker Wang Jin-pyng
(KMT) invite the small parties (TSU, PFP, and Non-Partisan
Solidarity Union) to discuss how to solve the impasse. If
the small parties are able to reach a consensus, then the
discussion should be extended to include the two large
parties (DPP and KMT).


7. (C) Given the opposition majority in the LY, it would be
best to have a premier from the KMT, Lee said, adding that
Wang Jin-pyng would be a suitable candidate for the position.
The important point is for the parties to be willing to
compromise. It is not productive for the two sides to be
continually shouting at each other. Noting that some people
had wanted him to show support for President Chen, Lee
stressed that he would maintain his neutrality to the end.
For him to do otherwise would simply increase political
confrontation.

Arms Procurement
--------------


8. (C) Lee suggested that the ruling and opposition parties
shared blame for problems in gaining LY approval for arms
procurement. Following U.S. approval of the arms sales
package in 2001, the DPP had delayed action and submitted the
bill shortly before an election. Opposition legislators had
rejected the bill to show constituents they were standing up
for their interests prior to the elections. More recently,
legislators have rejected arms procurement and other bills to
demonstrate their dissatisfaction with President Chen, Lee
observed.

Japan
--------------


9. (C) Asked about Japan's new Prime Minister Shinzo Abe,
Lee noted Japan's interest in improving cooperation with
China, including on the North Korean issue. Lee expressed
hope the Japanese government would take steps to solve the
Yasukuni Shrine issue, the source of which he attributed to
the shrine's having become a religious entity separated from
the government after WW II. Lee also noted the strengthening
of the U.S.-Japan alliance and suggested that basing
readjustments have increased the ability of the alliance to
meet possible threats from China. According to Lee, the most
important legacy of Japanese colonial rule in Taiwan was the
education system, which provided both general public
education and more specialized education for the elite, and
included exposure to ideas from the West.

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


10. (C) Despite his age (83),Lee still sees himself as an
important player in Taiwan politics, both as the highly
partisan "spiritual leader" of the pro-independence TSU and
in the role of a wise elder statesman standing above the
day-to-day fray. He has many friends and contacts in the
political arena, with whom he freely shares advice and
opinions on a host of subjects. Lee has never had much
regard for Chen Shui-bian, perhaps because Chen upset his
plans to install Lien Chan as president in 2000 and because
Chen has shown more interest in going his own way than
listening to Lee's advice. Lee's proposal that Speaker Wang
Jin-pyng become Premier betrays his continuing affection for
this native Taiwanese KMT figure, who perhaps reminds the
former President of himself.


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