MEDIA REACTION: U.S.-CHINA-TAIWAN RELATIONS, U.S.-ROK FREE

UNCLAS AIT TAIPEI 000761

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: U.S.-CHINA-TAIWAN RELATIONS, U.S.-ROK FREE
TRADE AGREEMENT



1. Summary: Taiwan's major Chinese-language dailies all gave
significant coverage April 4 to the crash of a military helicopter
in Kaohsiung County Tuesday afternoon, in which eight soldiers were
killed. News coverage also focused on the first trial hearing on
former KMT Chairman Ma Ying-jeou's alleged misuse of his mayoral
special allowance case Tuesday and other local political issues. In
terms of editorials and commentaries, an editorial in the
pro-independence "Liberty Times" urged the Taiwan people to push the
Legislative Yuan to pass the U.S. arms procurements budget as early
as possible in the face of China's expanding military buildup. An
op-ed in the limited-circulation, pro-independence, English-language
"Taipei Times" also called on the Legislative Yuan to take charge
and take ownership of defense spending in order to protect Taiwan
from the PRC threat. A column in the mass-circulation "Apple
Daily," on the other hand, discussed the U.S.-ROK Free Trade
Agreement and said the move will strengthen the United States'
political and economic strategic situation in Northeast Asia and
thereby further restrain China's expansion. End summary.


2. U.S.-China-Taiwan Relations


A. "China's Expanding Military Buildup Has Constituted Threat to the
International Community"

The pro-independence "Liberty Times" [circulation: 500,000]
editorialized (4/4):

"... China has not only taken a peaceful, harmonious offensive
toward the international community but also a peaceful, united-front
offensive to Taiwan, the island it intends to annex. But most
countries dare not lower their guard in the face of China's 'smile
diplomacy,' so the Asian-Pacific countries have sought to strengthen
their military buildup in order to cope with China's move toward
military hegemony. Most European Union nations also dare not easily
lift their ban on the arms embargo on China. Taiwan, on the
contrary, is the only one that lacks adequate vigilance and measures
in the face of China's military threat. The arms procurement budget
that will help Taiwan strengthen its defense is still stalled [in
the Legislative Yuan] because of obstruction from the opposition
parties. Moreover, even though China's hostility toward Taiwan is
so obvious, there are still people who call for proactively opening
Taiwan's investments in China. The move has not only diminished
Taiwan's economic power but also endangered its sovereignty, and all
the more, it has generated backlash that would contribute to China's
military expansion. ... As a result, the Taiwan people must urge
the Legislative Yuan to pass the relevant arms procurement budget as
early as possible. Otherwise, they must demonstrate the people's
power in the year-end legislative elections by voting against those
legislators and political parties that blocked the arms procurement
budget, and by voting for those that have the determination to
defend Taiwan."

B) "Defense: Time to Take Ownership"

Randall Schriver, former U.S. deputy assistant secretary of state
for East Asian and Pacific Affairs and a founding partner of
Armitage International LC, opined in the pro-independence,
English-language "Taipei Times" [circulation: 30,000] (4/4):

"... Only the legislature [in Taiwan], or more specifically, the
party in control of the legislature, is positioned to take the next
meaningful step. The legislature must pass a reasonable defense
budget and provide resources to procure the major systems made
available in 2001. ... Can the legislature take charge and take
ownership of defense spending to protect Taiwan? I believe it can,
and it is essential it does so in order to secure enough affirmative
votes on a responsible defense budget for successful passage. Here
are five specific ways for the legislature to take charge and
ownership of the defense budget as we move forward.

"One, in parallel with passing a defense budget with substantial
spending increases, the legislature should also add clarifying
language as to legislative intent behind previously passed
legislation known as the National Defense Act Article 22. The Act
calls for greater reliance on Taiwan's domestic industry for defense
procurement. ... If legislators had greater confidence that more
defense spending would translate into more jobs and more profit for
home-grown businesses (as is the case with US defense budgets),they
would naturally be more inclined to spend taxpayer money on defense.
Two, the legislature should approve funding for research and
development of the submarine program. ... And the US industry need
not fret - an indigenous program would still involve very
significant opportunities for US contracts. Three, when a
particular weapons system or platform can be produced by more than
one vendor, the legislature should insist that the Ministry of
National Defense ask the US government to encourage competition
among qualified vendors. ...
TRADE AGREEMENT

"Four, the legislature should declare victory on the referendum of
2004 and move on. Pan-blue leaders can note the three-year
moratorium after the failed referendum has expired and declare that
they are NOW prepared to deliver a responsible package for defense
against PLA missiles. ... And finally, in parallel with passage of
a defense budget, the legislature should also look at measures to
strengthen protection of sensitive technologies and related exports.
Such a move may ultimately help Taiwanese manufacturers become a
preferred vendor to the US Department of Defense. ... These steps
are well within the authority of Taiwan's legislature. They could
not only lead to final passage of the defense budget under
consideration, but also ultimately to a fundamental restructuring of
the way that Taiwan approaches defense procurement. Such a
restructuring would in turn help build strong, sustained domestic
support for appropriate defense spending to counter the PRC
threat."


3. U.S.-ROK Free Trade Agreement

"[South] Korean Gladiator"

Columnist Antonio Chiang noted in the mass-circulation "Apple Daily"
[circulation: 520,000] (4/4):

"The conclusion of the U.S.-ROK Free Trade Agreement (FTA) has
combined the world's 12th largest economy with its largest economy
to form an economic zone, of which the market size is smaller only
than the European Union and North American Free Trade Area. The
development will not only generate a big impact on South Korea's
economic society but will also greatly affect the economic and
investment environments in China, Japan, Taiwan and the entire
Asia-Pacific region. Also, it will contribute greatly to South
Korea's self-confidence and its international status. On the other
hand, this development also indicates that, with the decline of the
U.S.-ROK military alliance, the two countries have sought to
complement it with an economic alliance. The United States will be
able to strengthen its political and economic strategic position in
Northeast Asia and thereby further restrain China's increasing power
in the area. ... For South Korea, which has always been worried
about its status sandwiched between China and Japan, will
consequently be able to find a window to boost its long-term
national development by building itself into a 'hinge' in East Asia
with the U.S.-ROK FTA."

WANG