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, TAIPEI 00003554 002 OF 003 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. TAIPEI 00003554 003 OF 003 YOUNG