PRESIDENT CHEN RESUMES PARTY HELM, FRANK HSIEH

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 002323

SIPDIS

SIPDIS

E.O. 12958: DECL: 10/12/2022
TAGS: PGOV TW
SUBJECT: PRESIDENT CHEN RESUMES PARTY HELM, FRANK HSIEH
RETURNS TO CAMPAIGN TRAIL

REF: A. TAIPEI 2285

B. TAIPEI 2244

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


1. (C) Summary: President Chen announced on October 11 his
resumption of the DPP chairmanship, succeeding Yu Shyi-kun,
who resigned following his indictment as well as the
rejection of Yu's radical language for the "Normal Country"
Resolution at the September 30 party congress (ref B). On
October 12, DPP presidential candidate Frank Hsieh held a
press conference, marking his return to the campaign trail
following a two-week hiatus resulting from a knee injury and
a perceived need to regain control of the campaign agenda,
which had been distorted by Yu's Deep Green initiatives and
by President Chen's activism on the UN referendum and other
issues. AIT's DPP contacts welcome Chen's resumption of the
party chairmanship, believing he is the only leader strong
and clever enough to balance and manage the party's fractious
factions and individuals. Upcoming leadership changes at DPP
headquarters are expected to improve coordination between the
party and the Hsieh campaign. End Summary.


2. (SBU) On October 11, President Chen Shui-bian announced
his agreement to resume the chairmanship of the DPP, a
position he held from 2002-2004. He also announced that
Presidential Office Deputy Secretary General Cho Jung-tai
will become the new DPP secretary general, replacing Lin
Chia-long, who is slated to replace Cho at the Presidential
Office (though probably at a lower level). Chen stressed
that his main task as DPP chairman will be to lead the party
to victories in the legislative and presidential elections in
January and March 2008. Chen compared his role to that of a
traditional sedan chair carrier. "Those who help carry the
sedan chair must not drive away its occupant (i.e., Frank
Hsieh). The sedan's occupant gives orders and tells the
carriers where to go, while the carriers (i.e., Chen) must
warn the occupant about any dangers so he can decide where to
go (i.e., determine campaign strategy)." Later the same day,
Chen departed on a four day trip to the South Pacific.


3. (SBU) On October 12, DPP presidential candidate Frank
Hsieh held a press conference, marking his resumption of
campaigning after a two-week hiatus with no public
activities. In his press conference, Hsieh stressed the
importance of Taiwan passing a referendum on joining the UN
as well as the long-term consequences of deciding whether to
apply to the UN as "Taiwan" or as the "Republic of China."
He challenged KMT candidate Ma Ying-jeou to a public debate
on the relative merits of the separate DPP and KMT UN
referenda, with the losing party withdrawing its proposal,
which would increase the prospects for passage of a UN
referendum. According to the media, Ma responded that the
public is focused on economic issues, and therefore a debate
should be devoted to economic issues.


4. (C) Hsieh disappeared from public view when he canceled a
campaign rally planned for the conclusion of the September 30
DPP party congress. Because the congress became embroiled in
the dispute over the "Normal Country" Resolution (ref B),the
Hsieh camp realized the planned rally would have fizzled,
because the media was entirely focused on the controversy
over the Normal Country Resolution, Bikhim Hsiao, Hsieh's
international affairs director, told AIT. Hsiao added that
Hsieh has not suffered any damage in public opinion polling
as a result of his twelve-day absence from the campaign
trail. Hsiao and TECRO Council Member Corey Chen, a close
Hsieh advisor, both pointed out that Hsieh's absence had
actually led the media and public to refocus their attention
on the DPP candidate. Health as well as political
considerations contributed to Hsieh's temporary inactivity,
Corey Chen noted. Hsieh had suffered a significant knee
injury, which caused discomfort and needed time for healing,
and he had not wanted to engage in public events while
appearing lame, Corey Chen said, adding that Hsieh is still
not fully recovered and may need to limit campaigning for a
time.


TAIPEI 00002323 002 OF 002



5. (C) AIT's Green political contacts are in agreement that
President Chen's resuming the party chairmanship is a wise
move. Chen is the only leader with sufficient power and
political skills to balance and manage the party's fractious
factions and individuals, they say. In addition, they point
out, President Chen has a strong personal interest in a Hsieh
victory in order to protect himself from possible prosecution
for corruption when he loses presidential immunity after
leaving office next May. In separate conversations, Vice
presidential candidate Su Tseng-chang and Bihkim Hsiao
suggested to AIT that Chen and Hsieh will complement each
other, working relatively well together as a team (ref A).
According to their view, Chen, a more aggressive campaigner,
will consolidate and fire up the Deep Green base. This will
protect Hsieh's flank, enabling him to pursue a lower decibel
campaign strategy aimed at winning support from centrist
swing voters.


6. (C) From a different perspective, however, Corey Chen
acknowledged that trying to channel President Chen's
assertiveness in directions helpful to Hsieh's campaign could
prove challenging, though he also stressed that President
Chen and Hsieh share the same goal of getting Hsieh elected
president. This is quite different from the situation with
Yu Shyi-kun and his associates, who were bent on pursuing
Deep Green initiatives at odds with Hsieh's positions. Corey
Chen noted that Hsieh has asked President Chen to take the
lead in coordinating DPP cooperation with the Taiwan
Solidarity Union, independent legislators, and Taiwanese KMT
legislators, a task which the previous Yu Shyi-kun DPP
headquarters team had badly fumbled. Hsieh has also asked
President Chen to focus on central Taiwan, an area where
Hsieh is lagging badly, which Corey Chen attributed to
non-performance by former secretary general Lin Chia-long.
According to Corey Chen, in reappearing now, Hsieh is trying
to regain control of the campaign agenda. Hsieh hopes to
reduce Blue-Green confrontation over the UN issue and also to
begin laying new campaign themes intended to appeal to
centrist voters, including reform of the legal system and
possibly establishing English as Taiwan's second official
language.


7. (C) With President Chen resuming the DPP chairmanship,
there will be a changeover in most of the leadership
positions at DPP headquarters, with Deep Green Yu loyalists
being replaced by supporters of Hsieh, Su, and President
Chen. The new lineup may be announced next week, after
President Chen returns from the South Pacific. Bikhim Hsiao
told AIT that she will be replacing Lai I-chung as the
party's International Affairs Director, a position she has
previously held. The change in leadership positions at party
headquarters should significantly improve coordination
between the party apparatus and the Hsieh campaign and
probably also the performance of the DPP staff, our contacts
suggest.

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


8. (C) Former DPP Chairman Yu Shyi-kun tried to force Frank
Hsieh, against his will, to adopt a Deep Green agenda for his
presidential campaign. Hsieh refused. The recent indictment
of Yu for corruption gave Hsieh and President Chen the
opportunity they needed to compel Yu's resignation and
reorganize DPP headquarters in a way they hope will help
rather than hinder Hsieh's presidential campaign and the
legislative campaigns. While sharing a common interest in
winning the presidential election, Chen and Hsieh have
different temperaments and ideas about the campaign.
Ensuring that Chen complements rather than undermines Hsieh
will likely remain a challenge throughout the campaign.

WANG