APRIL 11 TAO PRESS BRIEFING: LIEN CHAN TO VISIT

UNCLAS SECTION 01 OF 02 BEIJING 002409

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PREL ETRD ECON CH TW
SUBJECT: APRIL 11 TAO PRESS BRIEFING: LIEN CHAN TO VISIT
BEIJING, OPPOSITION TO CONSTITUTION REFORM, TAIWAN
INVESTMENT FEDERATION


Summary
--------------


1. Key points at the April 11 Taiwan Affairs Office
(TAO) press briefing were:

-- Honorary KMT Chairman Lien Chan will attend the Third
CCP-KMT sponsored "Cross-Strait Forum on Trade and Culture"
April 28-29 in Beijing.

-- The spokesman did not comment on the possibility of new
KMT Chairman Wu Poh-hsiung visiting the Mainland.

-- The spokesman voiced the Mainland's strong disapproval of
DPP "ploys to manipulate public opinion" to achieve de jure
Taiwan independence.

-- According to the International Olympic Committee's
request, China will announce this month the route of the
Olympic torch for the 2008 Games. End Summary.

Lien Chan to Visit Beijing
--------------


2. Taiwan Affairs Office (TAO) spokesman Yang Yi announced
that Honorary KMT Chairman Lien Chan will attend the Third
CCP-KMT sponsored "Cross-Strait Forum on Trade and Culture"
April 28-29 in Beijing. Lien will also visit Henan to attend
a ceremony paying respect to ancestors. Asked whether
President Hu would meet with Lien or if new KMT Chairman Wu
Poh-hsiung would accompany Lien, Yang said the details are
still under discussion between the two parties. Issues
addressed in the forum will include direct flights, education
and tourism.

No Comment New Chairmen of KMT, MAC
--------------


3. Asked for comment on the appointment of pro-Taiwan
independence Professor Chen Ming-tong as chairman of Taiwan's
Mainland Affairs Committee, the spokesman expressed the hope
of all those on both sides of the Strait for peaceful and
stable development. When asked for his impression of Wu
Poh-hsiung and the differences between Wu and Lien Chan, Yang
said has had no contact with Wu, but can ask his colleagues
for their impressions.

Constitution Reform
--------------


4. In response to a question about "constitutional reforms"
which propose revising the "state name, territorial
definition and national flag," Yang voiced the Mainland's
strong disapproval of such ploys used by Chen Shui-bian, the
DPP and "Taiwan independence" forces to "manipulate public
opinion" and achieve de jure Taiwan independence. The
Mainland ardently opposes any person or group who by any
method attempts to separate Taiwan from China.

DPP's Yu Calls on U.S. to Clarify Taiwan Policy?
-------------- ---


5. Asked for comment on DPP Chairman Yu Shyi-kun's appeal
yesterday to the United States to clarify its "One China, One
Taiwan" policy, the spokesman stated that it is an immutable
fact that there is only one China including both the Mainland
and Taiwan.

Taiwan Investment Federation to Open in Beijing
-------------- --


6. The spokesman confirmed that the Federation of Taiwan
Compatriots Investments and Enterprises will hold a meeting
of representatives on April 15 and a formal opening ceremony
on April 16. Responding to accusations that the attendance
of TAO Director Chen Yunlin and Economic Director He Shizhong
at the events will taint activities in some way, Yang said
the Federation may invite members of various departments and
ministries to participate as advisors, council members and
other positions to build a bridge of communication between
the Federation and Government. Such cooperation safeguards
the rights and interests of the member enterprises and
promotes their development.

Taiwan's Restrictions Harm Own Industries
--------------


7. Yang agreed with media commentary that Taiwan's
semi-conductor industry, in light of Intel's decision to
invest USD 2.5 billion in building a 12-inch IC fabrication
plant in Dalian, will be harmed by two Taiwan companies'

BEIJING 00002409 002 OF 002


previous inability to enter the Mainland's market because of
restrictions of the Taiwan authorities. Yang expressed
regret over such hindrances by the Taiwan authorities,
holding that the Mainland has an open market and welcomes
investment from Taiwan's semiconductor industry.

Olympic Torch Route to be Released Soon
--------------


8. At the invitation of the China Taipei Olympic Committee,
Vice Chairman Hu Jiayan of the Mainland's China Olympic
Committee traveled to Taiwan yesterday to attend the Tenth
Cross-Strait Olympic Committee Forum on Athletics and
Exchange and discuss the issue of the Olympic torch.
According to the International Olympic Committee's request,
China will announce this month the route of the Olympic torch
for the 2008 Games.

Mini-Three Links
--------------


9. Asked for comment on reports that Taiwan authorities
recently announced the opening of Kinmen, Matsu and Penghu to
residents of Fujian Province, the spokesman reminded
journalists that the Mainland approved travel for Fujian
residents to these three cities in October 2004, but the
Taiwan authorities maintained prohibitions on travel to
Penghu. Yang hopes Fujian residents can visit Penghu at an
early date and urges relevant departments to support Fujian
Province in carrying out preparations.
RANDT