DPP PASSES SLIGHTLY LESS RADICAL "NORMAL COUNTRY"

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 002244 SIPDIS SIPDIS E.O. 12958: DECL: 10/01/2032 TAGS: PREL PGOV CH TW SUBJECT: DPP PASSES SLIGHTLY LESS RADICAL "NORMAL COUNTRY" RESOLUTION; FRANK HSIEH MOVES TO TAKE CHARGE OF CAMPAIGN REF: A. TAIPEI 02178 ¶B. TAIPE 02191 Classified By: AIT Director Stephen M. Young. Reason(s): 1.4 (B/D) ¶1. (C) Summary. A contentious DPP party congress on Sunday passed the less radical version of the "normal country" resolution that President Chen mediated last week, which pledges a non-specific "rectification" of the name Taiwan. Deep-Green supporters of former-DPP Chairman Yu Shyi-kun mounted a challenge, but managed to gain only 43 (of 328) votes for their more radical version mandating "change of national title to 'Taiwan'." So contentious was the meeting that DPP presidential candidate Frank Hsieh cancelled his planned appearance at both the congress and the campaign rally scheduled to follow. President Chen Shui-bian followed suit and cancelled his attendance, which Hsieh supporters claim reflects Chen's pledge last week to limit himself to running the government and let Hsieh run the presidential campaign. The selection of party leaders to succeed former Chairman Yu could indicate whether President Chen intends to keep himself at center stage. If he resumes the party Chairmanship, the issue would then become whether a Hsieh supporter becomes Secretary-General responsible for day-to-day party operations. End Summary. Contention Vice Unity -------------- ¶2. (C) What was supposed to have been a show of ruling Democratic Progressive Party (DPP) unity in the annual party congress on Sunday, September 30, turned into a debate, as supporters of former party Chairman Yu Shyi-kun challenged the compromise "normal country" resolution (NCR) mediated last week by President Chen Shui-bian. For two hours, the congress was occupied by a heated debate over approval of the Chen compromise or the Yu proposal, with supporters of each competing to speak. When put to a vote, however, the Yu version mandating "change of national title to 'Taiwan'" received support of only 43 of the 328 delegates present. A subsequent, milder Yu version received just 30 votes. ¶3. (C) Shortly afterwards, the compromise version of the NCR calling for a more general "Taiwan name change" was adopted by consensus via a show of applause. Following the vote, supporters of Yu Shyi-kun told the press that Yu would accept the approved NCR version and would support the Hsieh-Su ticket in the presidential campaign. Hsieh Makes a Strategic Retreat -------------- ¶4. (C) Before the final vote, Hsieh campaign director Yeh Chu-lan went on stage and told the congress that Frank Hsieh was deeply concerned and dismayed about the continuing NCR controversy. Hsieh recognized the need to balance national security and people's interests and found the controversy devisive to the party. Yeh stated that under the strain of the controversy Hsieh's "cold" had worsened and he would not attend the congress or the election rally following the congress. President Chen followed suit and announced he also would not attend the rally. Presiding over the congress as party Acting Chairman, Premier Chang Chun-hsiung announced that the evening's election rally would, as a consequence, be postponed until a later date. ¶5. (C) Legislator and Hsieh foreign policy advisor Bikhim Hsiao told AIT that Frank Hsieh's presidential campaign is now at a critical stage. Hsieh "needs to gain control of his campaign" and not be guided or limited by others, such as Yu. Noting that Hsieh unilaterally asserted last week that he will be responsible for the presidential campaign while President Chen will run the government, Hsiao explained that Hsieh is determined to "take charge" and counter popular perceptions that President Chen rather than he (Hsieh) is in charge of the campaign. Pointing to Hsieh's recent TAIPEI 00002244 002 OF 002 statements in support of cross-Strait interaction, she said Hsieh wants to demonstrate that if elected president he will not bend to deep-Green pressure as represented by the Yu challenge. Hsieh's decision not to attend the DPP rally was, Hsiao maintained, a strong, clear statement that he, and not party radicals, will run his campaign and devise his platform. Similarly, Chen's decision to likewise not attend the rally, she argued, reflected Chen's public agreement last week with Hsieh's assertion that he (Hsieh) will run the campaign while Chen runs the government. DPP Leadership Issue -------------- ¶6. (C) The next step for the DPP -- and Hsieh -- will be determining Yu's successor as party Chairman. The most frequently mentioned possibility is President Chen himself, who would resume the Chairmanship from which he stepped down to take responsibility for the DPP's setback in December 2004 legislative elections. A number of DPP leaders have told AIT that President Chen is the logical and most widely acceptable choice to serve as Chairman. At this point, the party desperately needs a strong leader, legislator Hsiao told AIT, but almost anyone other than Chen would arouse opposition from Yu and his supporters. ¶7. (C) Given the possibility that President Chen will resume the DPP Chairmanship, the next most important indicator will be who the party selects to serve as Secretary-General and run the party day-to-day. DPP Deputy Secretary-General Hsu Jen-tu -- "Hsieh's man" at DPP headquarters -- told AIT that all DPP party officials have tendered their resignations pending action by the new party Chairman. Bikhim Hsiao surmised that if President Chen becomes Chairman, he will "rid" DPP headquarters of Yu supporters because of his dissatisfaction with Yu. The question then, she said, was whether the party would select someone with close ties to its presidential candidate, Frank Hsieh. In previous conversations, Bikham Hsiao and Hsieh advisor Corey Chen have both suggested Hsieh would recommmend his confidante Lee Ying-yuan for the Secretary-General position. Comment -------------- ¶8. (C) Frank Hsieh's greatest challenge as DPP presidential candidate has been to gain control of his presidential campaign in the face of President Chen's activism and the deep-Green push to define and box in a future President Hsieh. Hsieh's efforts to date have reflected that challenge. His unilateral declaration last week that he would run the presidential campaign and President Chen would run the government was a step in that direction. Last Summer, Hsieh opposed the NCR from moving forward in the DPP, only to reverse himself and embrace the NCR when it proved too popular in his party. Later, Hsieh responded to the deep-Green challenge with Green one-upmanship -- declaring he is running for president of the "Taiwan nation" (Taiwan guo). At the same time, Hsieh seeks to compete against KMT presidential candidate Ma Ying-jeou by declaring he will expand cross-Strait ties if elected president. YOUNG