DIRECTOR'S MEETING WITH DEFENSE MINISTER LEE

S E C R E T SECTION 01 OF 02 TAIPEI 002313 SIPDIS C O R R E C T E D C O P Y (ADD NOFORN TO CAPTION) SIPDIS NOFORN E.O. 12958: DECL: 06/10/2032 TAGS: PGOV TW MASS SUBJECT: DIRECTOR'S MEETING WITH DEFENSE MINISTER LEE TIEN-YU TAIPEI 00002313 001.2 OF 002 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 SIPDIS 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 TAIPEI 00002313 002.2 OF 002 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