AIT CHAIRMAN BURGHARDT AND FOREIGN MINISTER HUANG

C O N F I D E N T I A L SECTION 01 OF 03 TAIPEI 001365 SIPDIS SIPDIS E.O. 12958: DECL: 06/18/2032 TAGS: PREL TW SUBJECT: AIT CHAIRMAN BURGHARDT AND FOREIGN MINISTER HUANG DISCUSS FOREIGN RELATIONS AND U.S.-TAIWAN TIES Classified By: AIT Director Stephen M. Young, Reason 1.4 (b/d) ¶1. (C) Summary: Foreign Minister Huang told AIT Chairman Burghardt on June 14 that Taiwan remains deeply concerned about its shrinking international space, particularly after Costa Rica's decision last week to switch recognition to Beijing. Despite his public statements that the loss would not have a "domino effect" on Taiwan's remaining Central American allies, Huang said privately he is much less confident that Taiwan can hold on, given China's rise and the leftist political tilt in Latin America. Huang revealed that his Ministry will send a "special envoy" to the region in the next two weeks to shore up relations, adding that Nicaragua was the most tenuous. Huang believes Taiwan-Japan relations have strengthened over the last seven years, but expressed concern about the current state of U.S.-Taiwan relations. Huang argued that the U.S.-Taiwan relationship should not be a "by-product" of the U.S. engagement with China. Referring to the 1994 U.S.-Taiwan policy review, Huang suggested that both sides join in "strategic discussions" on the future of the relationship and work toward reaching a consensus on the cross-Strait "status quo." Defending the decision to apply to the UN under the name "Taiwan," Huang asserted such a move would not violate President Chen's commitments to the U.S. Chairman Burghardt underscored that Washington does not share that view. End Summary. Taiwan Diplomacy Faces Difficult Year... -------------- ¶2. (C) Foreign Minister James Huang (Chih-fang) told AIT Chairman Burghardt on June 14 that Taiwan remains deeply concerned about its shrinking international space, particularly after Costa Rica's decision last week to switch recognition to Beijing. Despite his public announcements that the loss would not have a "domino effect" on Taiwan's remaining Central American allies, Huang said privately he is much less confident that Taiwan can hold on, given China's rise and the leftist political tilt in Latin America. Huang noted that his ministry will be under great pressure in the next 3-6 months as it works to shore up relations in the region and stem further diplomatic losses. ¶3. (C) Huang said his biggest challenge will be making the best use of Taiwan's limited financial and other resources to consolidate its diplomatic standing. His ministry will focus over the coming year on Central America, with President Chen Shui-bian scheduled to attend a heads-of-state summit in August. Vice President Annette Lu will be making her own trip to the region next month, visiting the Dominican Republic, Paraguay, and perhaps Panama (although Huang noted that under Taiwan's constitution only the president and foreign minister have the authority to negotiate with foreign governments). Huang added that he will also send a "special envoy" to the region in the next two weeks to shore up relations. ¶4. (C) Huang told Chairman Burghardt that although Taiwan was aware of Costa Rica President Arias' intention to recognize Beijing, Taipei was nevertheless taken by "surprise" that the switch came little more than a year after Arias' inauguration. Huang suggested that Arias made the decision out of a desire to be the leader and "pioneer" among Central American countries. Huang said Arias sees Costa Rica as "superior" to its poorer neighbors and on par with Mexico and Western countries; seeking to be a regional, if not international player, Arias felt he had to establish ties with Beijing. ¶5. (C) Huang admitted that Nicaragua is now Taiwan's most tenuous relationship in the region. He revealed that during his May visit to Managua President Ortega said he was facing strong pressure from his party, as well as urging by Castro and Chavez, to establish diplomatic ties with Beijing. Huang TAIPEI 00001365 002 OF 003 believed he had managed to convince Ortega, for the moment, that keeping ties with Taipei sends a positive message to the U.S. and others that the Ortega administration values stability. Huang explained that Taiwan, as Nicaragua's largest foreign investor whose companies employ about 25,000 people, has more economic clout there than in Honduras or Guatemala. Taiwan has pledged to work with Ortega on poverty alleviation programs and to help Nicaragua expand its production of electric power. Looking at relations outside of Central America, Huang said ties with diplomatic partners in Africa and the South Pacific remained solid. ...But Won't Undermine International Sanctions in Fiji -------------- -------------- ¶6. (C) Chairman Burghardt told Huang that while U.S. policy is not to become involved in the competition for diplomatic recognition between Taipei and Beijing, Washington remains concerned about how the game is played. Both sides should conduct the competition in accordance with international standards of transparency and in ways that do not undermine good governance. In particular, the Chairman urged Taipei to exercise caution in its interactions with the illegitimate military government in Fiji. Huang replied that although "some people" saw the coup in Suva as an opportunity for Taipei to establish bilateral relations, he understands Washington's position and has directed Taiwan diplomats "not to do anything" that would undermine international sanctions against the regime. Taiwan would lose more than it could possibly gain by advancing relations with Suva, Huang added. Taiwan-Japan Ties Strong -------------- ¶7. (C) Turning to Taiwan's informal foreign relations, Huang told the Chairman that ties with Tokyo are strong and are likely to grow only stronger under Prime Minister Abe. Huang pointed to the granting of visa-waiver status to Taiwan tourists last September as evidence of Tokyo's sincerity. People-to-people contacts have also been excellent, with the visit of Sumo wrestlers to Taipei last summer widely watched in both Japan and Taiwan. More recently, Huang said the visit of former President Lee Teng-hui to Japan has helped to boost Taiwan's image there. Although Tokyo was initially concerned that Lee's visit could complicate China-Japan relations ahead of Abe's planed trip to Beijing in the fall, Huang said he learned that Abe personally supported Lee's visit and helped "put out the fire." (Note: The Japanese Representative here confirmed to the Director this week that Tokyo felt they'd successfully weathered Lee's visit.) Concerns about the U.S.-Taiwan Relationship -------------- ¶8. (C) Huang told the Chairman that he is not as equally optimistic about the current state and direction of U.S.-Taiwan relations. Huang said what concerns him most is Washington's "lack of a strategy" toward Taipei. Although the U.S. has formulated the "responsible stakeholder" concept for addressing China's rise, Huang asserted that the U.S. does not have a similar strategy for engaging a democratic and politically dynamic Taiwan. Huang argued that U.S.-Taiwan relations should not be a "by-product" of the U.S. engagement with China. Huang said he was being blunt in saying that the U.S. approach seems to consist of telling Taiwan to "stay put, don't make trouble, don't do anything." ¶9. (C) Chairman Burghardt stressed that the U.S. maintains a strong commitment to Taiwan, which no other country has made. China's increased role in the world has not diminished that commitment, though Beijing is a factor that must be taken into account in how Washington engages Taipei. Also speaking frankly, the Chairman pointed out that turns in U.S.-Taiwan relations have resulted from unwelcome surprises TAIPEI 00001365 003 OF 003 by Taipei, provocative moves that can destabilize the Taiwan Strait situation, as well as a lack of full candor on some issues, including military programs. ¶10. (C) Acknowledging that there have been "ups and downs" over the past seven years, Huang stated that perhaps it has been difficult for Washington to adjust to a democratic Taiwan. With the end of five decades of Kuomintang rule in 2000, both sides have had to adjust to a new situation. Irrespective of which political party is in power after 2008, Huang said that the realities of domestic politics will continue to be an important factor in Taiwan's bilateral relationship with the U.S. He suggested that both sides join in strategic discussions on the future of the relationship and work toward reaching a consensus on the cross-Strait "status quo." Referring to the 1994 U.S.-Taiwan policy review, Huang urged Washington to undergo a similar review to reassess how it can better engage a democratic, politically dynamic Taiwan. Such an approach, Huang said, would help provide a positive dialogue and clarify U.S. and Taiwan positions. Chairman Burghardt told Huang that Washington and Taipei already have formats and avenues for discussing bilateral issues. Perhaps in future exchanges some time could be allotted to address longer-range views on the U.S.-Taiwan relationship. Taiwan's UN Bid -------------- ¶11. (C) Chairman Burghardt told Huang that pressing ahead with an application and referendum on joining the United Nations under the name "Taiwan" would likely force the U.S. to address the issue of sovereignty, perhaps in a manner not to Taipei's liking. Taiwan would be wise not to compel the U.S. to make public its stance on the issue. Huang replied that his ministry's job will be to explain to the international community and the Taiwan public the importance of joining the UN from a "practical" point of view. In an era of globalization, Taiwan needs membership in international organizations to remain competitive and uphold the rights of the 23 million people on the island. Nomenclature and political considerations are a separate issue, though Huang asserted that applying under "Taiwan" does not violate President Chen's commitments to the U.S. Chairman Burghardt underscored that Washington does not share that view. ¶12. (U) Chairman Burghardt has cleared this cable. YOUNG