NSPO BUDGET AND PERSONNEL PROBLEMS CONTINUE

S E C R E T AIT TAIPEI 000239

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NOFORN
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DEPT EC/NP FOR CHRIS KESSLER

E.O. 12958: DECL: 01/31/2012
TAGS: ECON ETTC PREL TSPA TW
SUBJECT: NSPO BUDGET AND PERSONNEL PROBLEMS CONTINUE

REF: A. 06 TAIPEI 04045


B. 06 TAIPEI 03745

Classified By: AIT ECON CHIEF DANIEL K. MOORE FOR REASONS 1.4 B/D


1. (S/NF) SUMMARY. National Space Program Office (NSPO)
Director Lance Wu told AIT/T on Jan. 17 that Taiwan
Solidarity Union (TSU) legislator Liao Pen-yan continues to
obstinately oppose NSPO's budget and seeks Wu's ouster. Wu
said NSPO continues to be beset with personnel issues and was
pessimistic about NSPO's ongoing and future projects,
including Formosat-3, the Cyclops remote sensing satellite
and the broadband communications satellite. While he would
like AIT's intercession, we believe there is no basis for any
AIT action. END SUMMARY

NSPO WEIGHED DOWN BY BUDGET AND PERSONNEL WOES
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2. (S/NF) National Space Program Office (NSPO) Director
Lance Wu told AIT/T on January 17 that Taiwan Solidarity
Union (TSU) legislator Liao Pen-yan has threatened to cut
NSPO's budget by two thirds to NT$5 billion. Wu said this
would be barely enough for NSPO to keep operating through
fiscal year 2007, which ends in July 08. Wu said all current
projects, including Formosat-3, Cyclops and the broadband
communications satellite programs are in jeopardy (Note. When
the Legislative Yuan (LY) session ended Jan. 19, Wu said that
the LY had cut only 20 percent of NSPO's operating budget.
End note). Wu believes that Liao's agenda is to force Wu out
of his position as head of NSPO, primarily in order to divert
attention from the investigation into Liao's role in official
secrets being leaked by Wu's deputy, Hsiao Chiu-der.

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Although National Science Council Minister Chen Chien-jen has
tried to reason with Liao, Wu said Chen was not capable of
dissuading Liao from his single-minded goal. To make matters
even more complex, Wu's other deputy, Chen Shao-hsing, has
been under suspicion for sexual harassment of his staff.

Wu Wants AIT's Help
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3. (S/NF) Wu said it is critical for Taiwan to maintain the
CYCLOPS remote-sensing satellite program since Formosat-2
will be de-commissioned in 2009. If CYCLOPS is not funded,
Taiwan will lose a valuable remote-sensing capability that
will adversely affect its national security. Wu said the
sounding rocket program is still scheduled for launch in
March but the broadband communications satellite has been put
on hold. Wu feels that because projects such as Formosat-3
and Cyclops and the broadband communications satellite all
involve U.S. companies or USG funded programs, AIT can
provide the catalyst needed at the top levels of Taiwan's
government (the National Security Council and Premier Su
Tseng-chang) to keep NSPO from losing its budget and

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functions. On the Taiwan side, those agencies most affected
by the NSPO's budget cut are the National Security Bureau,
the National Security Council and Ministry of National
Defense (MND). Wu believes that all these agencies need to
discuss strategy but those agencies have not shown the
initiative.

WU'S FUTURE IN DOUBT
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4. (C) Asked about his future plans, Wu was non-committal,
implying he might step down whether the budget is passed or
not. (Note: the director of NSPO cannot be a dual citizen.
This requirement would exclude many qualified U.S. trained
specialists. End Note.) To keep NSPO functioning during
this period, Wu has added two new deputies, Chen Cheng-shin
and Wu An-min with experience in Formosat-2 and the sounding
rocket programs, respectively.

COMMENT
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5. (C) AIT/T believes Taiwan needs to sort out its own
problems with regard to funding and staffing at NSPO. We do
not see any role for AIT or U.S. agencies to become involved
as Wu has suggested. End Comment.
YOUNG