MAY 16 TAO PRESS BRIEFING: FRANK HSIEH CANDIDACY;

UNCLAS SECTION 01 OF 02 BEIJING 003291

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PREL ETRD ECON CH TW
SUBJECT: MAY 16 TAO PRESS BRIEFING: FRANK HSIEH CANDIDACY;
NEW PM CHANG; CROSS-STRAIT TOURISM; OLYMPIC TORCH ROUTE;
DIRECT LINKS


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


1. Key points at the May 16 Taiwan Affairs Office
(TAO) press briefing were:

-- TAO Spokesman Li deflected questions on DPP
Presidential Candidate front-runner Frank Hsieh and
the newly appointed Premier Chang Chun-hsiung.

-- The fifth round of "technical consultations" on
cross-Strait tourism have stalled and Li did not
respond to a reporter's suggestion that the Mainland's
addressing Taiwan as "Taiwan, China" in consultation
documents was the obstacle.

-- Claims that Beijing is bullying Taiwan in regards
to the Olympic torch issue are groundless, said Li.
End summary.

No Comment on DPP Hsieh or New Premier
--------------


2. Asked at the May 16 Taiwan Affairs Office (TAO)
press briefing about the DPP front-runner for the 2008
"Presidential" election, Frank Hsieh, TAO spokesman Li
Weiyi deflected saying that "scholars have their own
opinions on the matter." In response to a reporter's
question of what the effect the new Premier Chang
Chun-hsiung, who recently replaced Su Tseng-chang,
would have on cross-Strait relations and issues such
as tourism and the Olympic torch route, the spokesman
simply commented on the current situation in these
areas without mention of the new appointment. On
whether Chang's new position would affect the ability
of the Straits Exchange Foundation (SEF) to carry on
work related to particular issues, such as mutual
recognition of university degrees, Li said that the
ability of the SEF to play a role in cross-Strait ties
remains predicated on the important political
foundation of the "1992 consensus."

Cross-Strait Tourism: "Taiwan, China" an Obstacle?
-------------- --------------


3. After achieving consensus and partial results
through four rounds of technical consultations on the
issue of opening up cross-Strait tourism to Mainland
residents, Li said the Taiwan side has not responded
to Mainland proposals prepared for the fifth round of
consultations. Li declined to comment on a reporter's
suggestion that progress was hindered by the
Mainland's insistence on referring to Taiwan as
"Taiwan, China" in consultation documents.

Olympic Torch
--------------


4. On the issue of the Olympic torch route, the
Beijing Organizing Committee for the 2008 Olympic
Games (BOCOG) made it very clear at an April 26 press
briefing that Beijing carried out fair consultations,
respected the views the Taiwan side and reached four
important points of consensus which were confirmed by
Taiwan's Tsai Chen-wai on March 27, said Li. He added
that claims that the Mainland is bullying Taiwan on
the Olympic torch issue were groundless.

Taiwan Politics Hinders Direct Links
--------------


5. Chen Shui-bian's claim that direct transportation
links cannot be realized by 2008 because of Mainland
insincerity shows his own lack of sincerity in
promoting these links and suggests Chen might take new
action to impede progress in the matter, said Li when
asked for comment. The success of charter flights
demonstrates there are no business-related or
technical issues to direct links and the Mainland's
sincerity has been shown by its consistent, active
promotion of links including new policies and measures
announced at the Third Cross-Strait Economic and
Cultural Forum in April 2007. Li agreed with a
comment by Penghu Cross-Strait Exchanges Federation
Chairman Li that the first direct cargo transport
between Fujian and Pengu on May 15 was a small step in
cross-Strait links, but very important for Penghu.

Kidnapped Taiwan Businessman Released
--------------


BEIJING 00003291 002 OF 002



6. Lin Wen-tung, a Taiwan resident kidnapped in
Guangzhou on May 5 was rescued two days later by local
police, Li said when questioned about the case and the
possibility that suspects will be extradited back to
Taiwan. The spokesman stated that further matters
related to the case would be handled in accordance
with relevant laws. Five suspects are in custody and
police are looking for Hsu Chia-min, a Taiwan resident
allegedly behind the kidnapping, added Li.

Mainland Ready for Consultation and Student Exchange
-------------- --------------


7. China hopes to consult with Taiwan authorities on
cross-Strait exchanges, said Li responding to recent
comments coming from the Taiwan "Mainland Affairs
Council" that the Mainland should not avoid
interaction with Taiwan. These remarks evidence
Taiwan's refusal to implement measures that are in its
own interests, he added. Many common proposals to
expand cooperation and promote the peaceful, stable
development of relations were approved at the Third
Cross-Strait Economic and Cultural Forum. Asked about
a Mainland proposal at the Forum to allow Mainland
students to study in Taiwan, Li said the
implementation may be difficult because Taiwan has
given no response and still does not recognize
Mainland university degrees.

RANDT