MEDIA REACTION: CROSS-STRAIT RELATIONS

UNCLAS AIT TAIPEI 000417 SIPDIS SIPDIS DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - LLOYD NEIGHBORS DEPARTMENT PASS AIT/WASHINGTON E.O. 12958: N/A TAGS: OPRC KMDR KPAO TW SUBJECT: MEDIA REACTION: CROSS-STRAIT RELATIONS ¶1. Summary: Taiwan's major Chinese-language dailies focused coverage February 17-23 on the death of Hsu Tsai-li, the mayor of Keelung who was embroiled in a corruption scandal; and the efforts by cross-Strait officials in charge of arrangements for the 2008 Olympic Games for routing the Olympic torch relay through Taiwan. ¶2. In terms of editorials and commentaries, an editorial in the centrist, pro-status quo "China Times" urged the government to focus on practical matters in cross-Strait relations, such as allowing tourists from mainland China to visit Taiwan. Another editorial in the "China Times" urged the Taiwan authorities to avoid too much reliance on the Chinese market. End summary. ¶3. "Allow Mainland Chinese To Sightsee in Taiwan" The centrist, pro-status quo "China Times" [circulation: 400,000] editorialized (02/21): "If nothing unexpected happens, the Chinese side might announce its decision to allow Chinese people to tour Taiwan; matters related to the exchange of yuan [renminbi] might also be solved together. To be frank, we hope that cross-Strait relations in 2007 continue to involve these issues. Sightseeing and tourism consist of eating, drinking, playing, and having fun. These are the least issues that would have anything to do with politics, and these issues make everyone happy. Just let these issues develop; don't handle them inappropriately to make everyone losers. ... "There has been no progress in cross-Strait relations for years. This year is an election year, and it is unlikely to see any breakthrough across the Taiwan Strait. Since the passage of the 'Anti-Secession Law,' Beijing has taken a more pragmatic policy toward Taiwan; Washington has also been watching the Taipei authorities so that Taiwan will not cross any red line. The situation has made cross-Strait relations relatively stable, even though there is still a stalemate. Therefore, why not do more things practically, and at least push for the opening of the Taiwan market to Chinese tourists?" ¶4. "This Year, Please Save Some Energy on the Economy" The centrist, pro-status quo "China Times" [circulation: 400,000] said in its editorial (02/20): "... According to data gathered by China's Ministry of Commerce, cross-Strait direct trade in 2006 has for the first time surpassed US$100 billion, a nearly 20 percent increase compared to 2005. Hence, Taiwan has become China's seventh-largest trading partner, its fifth-largest import market, and the biggest source of its trade deficit. In other words, China is Taiwan's largest trading partner, and the biggest source of its trade surplus. Simply put, Taiwan's economic growth always depends on exports, and the biggest export market is the United States. Nowadays, Taiwan's export market has shifted to mainland China. Without the Chinese market, Taiwan's already declining economy might find it hard to survive. "The sale of Chinese merchandise to Taiwan hurts the island. For example, Taiwan's towel manufacturers have suffered from the dumping of Chinese towels. If China does not sell its merchandises to Taiwan, it also causes harm. For example, China has tried its best on construction and has therefore banned the sale of gravel to Taiwan. The ban has caused a panic among Taiwan businesspeople in the construction business; they have asked the Taiwan External Trade Development Council (TAITRA) to negotiate with its Chinese counterpart on the resumption of sales. "There are numerous examples similar to towels and gravel mentioned above. Cross-Strait economic relations are connected very closely, while cross-Strait political relations are in a state of severe hostility. If any [military] confrontation erupts [in the Taiwan Strait], Taiwan's economy will suffer from a recession if China cuts off cross-Strait trade, let alone takes military action. However, the Taiwan authorities do not have a strategy to separate markets for imports and exports, and to avoid reliance on the Chinese market. If this situation is not improved in the Year of the Pig [2007], it will surely be exacerbated in the Year of the Rat [2008]...." YOUNG