DIRECTOR'S MEETING WITH DEFENSE MINISTER LEE

S E C R E T SECTION 01 OF 02 TAIPEI 002313

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C O R R E C T E D C O P Y (ADD NOFORN TO CAPTION)

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E.O. 12958: DECL: 06/10/2032
TAGS: PGOV TW MASS
SUBJECT: DIRECTOR'S MEETING WITH DEFENSE MINISTER LEE
TIEN-YU

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Classified By: AIT Acting Director Robert S. Wang,
Reason: Sec 1.4 (a/b/d)


1. (S/NF) Summary. AIT Director met with Taiwan Minister of
Defense Lee to discuss a range of issues on October 9, on the
eve of the National Day celebrations. Subjects discussed
included military participation and possible HF-IIE in the
National Day parade, 2008 defense budget, Taiwan's request
for military exercises with US, and recently reported Taiwan
information insecurity and associated corrective actions.


2. (SBU) American Institute in Taiwan Director, Stephen
Young, met with Taiwan Defense Minister Lee Tien-yu on 9
October 2007 for discussion prior to the Director's departure
for East Asia Chief of Mission Conference and consultation at
PACOM.


3. (SBU) Director Young asked why President Chen Shui-bien
decided to have a military parade at this year's National Day
Celebration. The Minister said previously there were
concerns that the parade would disclose too many military
secrets and the opposition party (DPP) was generally against

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such public military displays. The purpose of military
participation in this year's parade is to underscore Taiwan's
military capability but not intended to provoke Beijing. He
underscored that this is an important event for the Taiwan
military because it reflects the "nationalization" of the
military (as divorced from partisan politics) and generates
pride among its ranks.


4. (SBU) Regarding the defense budget, Minister Lee said MND
has requested NT 349.5 Billion for 2008 that will amount to 3
percent of the GDP. This budget includes the four major
programs (submarines, P-3C, PAC-3, and F-16). Minister Lee
is "cautiously optimistic" that the budget will be passed by
the Legislative Yuan by the end of the month.


5. (S/NF) The Director mentioned there are still strong
concerns with Taiwan's long-range missiles and requested
Minister Lee to confirm that the controversial HF-2E missiles
would not be displayed in the parade. Minister Lee confirmed
this and noted that he understands the sensitivies involved.
He added that the HF-2E is still a developmental system. He
explained Taiwan must have an effective deterrence against
the 1,000 PRC missiles aimed at the island. Taiwan could not
just plan on absorbing PRC attacks. Taiwan needs a stronger
defensive system to survive.


6. (SBU) On the F-16, the Director reiterated the decision
has not been made to even consider this request and that
Taiwan should continue to create the condition that convinces
US decision makers Taiwan is serious about the procurement.
One of the ways is to have the budget ready.


7. (S/NF) Minister Lee, in response to Director Young's
inquiry on what issues he can bring to PACOM, mentioned
Taiwan observation of US exercises, possible PASSEX with US
ships transiting waters off Taiwan, search and rescue
exercises with US forces, and submarine rescue
training/exercise. He also said if U.S. ships or aircraft
ever experience an emergency near Taiwan, all airfields and
ports are open to support the emergency.


8. (SBU) Minister Lee discussed the PRC military expansion
and its impact. In addition to challenging Japan, Korea,
Taiwan, and the U.S., he believes that a major purpose of the
expansion is to divert attention from domestic issues when
necesary.


9. (SBU) Director Young raised the recent newspaper article
about the mishandling of the MND's shredded paper. (Where
some classified documents were shredded and sold off to
recyclers by defense staff.) Minister Lee said both he and
the CGS are disturbed and regretted the event. He said a
young soldier in the office responsible for the removal of
the waste was unhappy with his peers and decided to expose
this practice to the media to hurt the office. Minister Lee
assured the Director the information was not highly
classified and said it was a summary of various routine

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military activities. However, he has taken corrective
action. MND has also already obtained 1300 crosscut
shredders. By the end of the year, MND will have another
2963 units distributed throughout the military.


10. (S/NF) Director Young asked about the news report that
Taiwan is placing surface to surface missiles on Matsu.
Minister Lee said he and the Chief of the General Staff will
not do such a thing as it will certainly cause the PRC to
react and he likened it to putting a nail in the PRC's eye.
The MND is in the process of increasing Matsu's defensive
capability such as new surveillance systems and munitions.
He said Taiwan will not give up the outer islands. Taiwan
will strengthen its defense but not deploy offensive weapons.
The Director encouraged restraint and Minister Lee
acknowledged that there is no need to add fuel to the fire.
WANG