SECRETARY-GENERAL YEH ON UN REFERENDUM, "NORMAL

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 001956

SIPDIS

SIPDIS

E.O. 12958: DECL: 6/15/2032
TAGS: PGOV PREL TW
SUBJECT: SECRETARY-GENERAL YEH ON UN REFERENDUM, "NORMAL
COUNTRY" RESOLUTION, AND DOMESTIC POLITICS

REF: TAIPEI 01950

Classified By: AIT Director Stephen M. Young, Reason 1.4 (b/d)


1. (C) Summary: Presidential Office Secretary-General Yeh
told the Director on August 24 that President Chen
understands U.S. concerns over pushing issues that touch on
the question of Taiwan sovereignty, but he is under a "great
deal" of domestic pressure to press forward with an
initiative like the UN referendum that is already underway.
Yeh said that promoting the UN referendum is Chen's way to
respond to those calls while deflating pressure for more
"radical" deep Green initiatives. There are divisions within
the DPP over how far to push a more radical program,
especially over Party Chairman Yu Shyi-kun's call for a
"normal country" resolution and a defensive referendum.
Although the DPP is likely to pass the "normal country"
resolution, Yeh stated, Chen and DPP presidential candidate
Frank Hsieh want the final document to focus on basic
principles--that Taiwan is an independent, sovereign state
and not part of China--and to eschew some of the more
"controversial substance." The Director emphasized deep U.S.
concerns about such initiatives. He told Yeh that
U.S.-Taiwan relations are entering a sensitive period and, if
not properly handled, President Chen risks bequeathing his
successor a difficult relationship. End Summary.


2. (C) Presidential Office Secretary-General Yeh Chu-lan
and the Director on August 24 discussed Taiwan's UN
referendum, the Democratic Progressive Party's "normal
country" resolution, and domestic politics. Yeh, who started
her job August 20, said she originally hoped to meet the
Director as the DPP vice-presidential candidate. Her
long-time political ally Frank Hsieh's (Chang-ting) decision
to select former Premier Su Tseng-chang as his running mate,
nevertheless, had the best interests of the party in mind.
Yeh said she now serves President Chen, not Hsieh. Though
the two leaders may have disagreements and different ideas,
they share a commitment to take Taiwan and the party forward
in "the same direction."


3. (C) The Director told Yeh that while the U.S respects
Taiwan's democracy, AIT has underscored to both Chen and
Hsieh U.S. concerns that recent initiatives, such as the UN
referendum and the "normal country" resolution, are steps
that could unsettle the cross-Strait status quo and upset
stability and peace throughout the region. The Director
emphasized U.S. concern that in an election year additional
"surprises" from President Chen might lie ahead.


4. (C) Yeh told the Director that President Chen
understands U.S. concerns, but he is under a "great deal" of
domestic political pressure to press forward with an
initiative like the UN referendum that is already underway.
Deep Green supporters within the party, social groups, and a
majority of the public, Yeh contended, strongly believe in
the need for Taiwan to be represented in the UN. Yeh said
that pushing the UN referendum is Chen's way to respond to
those voices while deflating pressure for more "radical" deep
Green initiatives. Yeh added that the UN initiative also
promotes cross-Strait peace and stability and the status quo
by making clear that Taiwan is not a part of China.


5. (C) Yeh suggested that the U.S. should not be concerned
about more surprises from President Chen in the coming year.
There are divisions within the DPP over how far to push a
more radical program, especially over Party Chairman Yu
Shyu-kun's recent initiatives for a "normal country"
resolution and a defensive referendum. Yeh echoed Premier
Chang Chun-hsiung's prediction (Reftel) that Yu may soon be
replaced as party chairman because his views are increasingly
out of step with the party mainstream, and with Frank Hsieh
in particular.


6. (C) Yeh said that the DPP would approve the "normal
country" resolution because no one, including President Chen,
could afford to oppose it in principle. The current draft
calls for changing the national title, defining the
territory, and revising the constitution, all of which Yeh

TAIPEI 00001956 002 OF 002


acknowledged are steps toward changing the status quo. The
party will continue extensive discussions to reach compromise
language that tones down the content of the resolution by
August 30, when the party's Central Executive Committee is
scheduled to vote on the measure. Yeh told the Director that
party leaders are in agreement that the wording of a final
resolution must be acceptable to both Chen AND Hsieh. Yeh
noted that Hsieh's trip to the U.S. had had a "big impact" on
his thinking, deepening his understanding of the U.S.
position on such issues. Yeh said that Chen supports passage
of a resolution with the condition that the content as
currently worded is changed. As a result, the focus of
ongoing discussions is on formulating language that reflects
the DPP basic principles--that Taiwan is an independent,
sovereign state and not part of China--and removing some of
the more "controversial substance." Yeh, a member of the
resolution working group, underscored that both Chen and
Hsieh will be "careful" in handling the issue.

7 (C) Yeh protested to the Director that the U.S. transit
through Alaska offered to President Chen had "hurt" the
Taiwan people. The Director replied that although the U.S.
and Taiwan may not always agree, open and frank communication
is important. U.S.-Taiwan relations are entering a sensitive
period and if not properly handled President Chen risks
bequeathing his successor a difficult relationship. The
Director said the U.S. viewed President Chen's conduct when
he met former AIT Chairman Brown in Alaska as disrespectful
and urged President Chen to avoid similar behavior on the
return transit when he meets with AIT Chairman Burghardt.
Yeh promised to pass the message to Chen.

Comment
--------------


8. (C) Although Yeh told us she is in her current job to
serve President Chen, our meeting gave us the impression she
is very much Frank Hsieh's person in the Chen administration.
Yeh spent more time suggesting the party was trying to
reword the language of the "normal country" resolution than
assuring us--as Premier Chang had the day before--that this
initiative wasn't going anywhere. We made it clear failure
to corral such ideas could further damage our bilateral
relations and might have an impact on the broader U.S. view
of the DPP and its presidential candidate. The Director
echoed these sentiments later that day during a chance
meeting with Hsieh's campaign manager, Lee Ying-yuan, and
adviser Bikkim Hsiao. On August 27 he did the same over the
phone with Frank Hsieh himself.
YOUNG