DIRECTOR'S NOVEMBER 6 MEETING WITH DEFENSE

S E C R E T SECTION 01 OF 02 TAIPEI 002452

SIPDIS

SIPDIS

E.O. 12958: DECL: 06/10/2032
TAGS: PGOV TW MASS
SUBJECT: DIRECTOR'S NOVEMBER 6 MEETING WITH DEFENSE
MINISTER LEE TIEN-YU

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


1. (C/NF) Summary. Director, Stephen Young, met with the
Taiwan Minister of Defense Lee Tien-yu to discuss the defense
budget, the Director's recent visit to PACOM, F-16, SECDEF's
visit to China, and Taiwan's missile program. Present at the
meeting were Director Young, Deputy Director Bob Wang, Acting
Chief of Technical Section Tony Hu, and Major Cole Shepherd
from the Liaison Affairs Section. On the Taiwan side were,
Chief of the General Staff Gen Huoh, Vice Minister Ko, Deputy
Minister Lt Gen Lin, Director of Strategic Planning
Department Vice Adm Tung, and the Minister's Chief of Staff,
Maj Gen Hsiong. End Summary.


2. (SBU) Minister Lee opened the meeting by reviewing recent
MND activities. He thanked the U.S. for participating in the
National Day parade. He noted some opposition Legislative
Yuan (LY) members criticized him for having the parade.
(Note: Key KMT players like Taipei mayor Hau Long-bin and
party presidential candidate Ma Ying-jiu boycotted in favor
of their own event. End note.) He believes the parade
increased the morale of the soldiers and showcased defense
capabilities to the people. He was proud that the execution
of the event was nearly flawless. All aircraft were within
three seconds of their targeted time over the reviewing stand
and no vehicle broke down. Due to low cloud ceiling, the
paratrooper jump had to be canceled but the event has been
rescheduled for Nov 11 at the Democracy Memorial Hall
(formally the Chiang Kai-Shek Memorial Hall).


3. (C/NF) The Minister thanked the Director for talking to
leaders of both of Taiwan's main political parties to solicit
their support of the defense budget. The Director asked
about the prospects for the passage of the defense budget
before the LY recess in December. Minister Lee said he is
communicating with LY members on the importance of
maintaining a strong defense. He requested opposition KMT LY
members not to use MND as a tool to undermine DPP. He
encouraged them to have a strategic vision and note the
military is not the DPP's military but serves all the people
of Taiwan. Although many LY members criticize the MND in the
open, privately they have indicated support. The Minister is
cautiously optimistic that the budget will pass by
mid-December. He said although the LY is likely to cut some
of the 2008 budget, it should still reach 2.85% - 2.90% of
GDP. Minister Lee mentioned his October 30 letter to the
Director urging U.S. support for Taiwan's F-16 request.


4. (S/NF) The Director discussed his October visit to USPACOM
where he met USPACOM Commander Adm Keating, PACFLT Commander
Adm Willard, PACAF Commander Gen Hester, and USARPAC
Commander Lt Gen Brown. Director informed Lee that while
these general officers have a wide range of responsibilities,
they are all very focused upon the cross-strait situation.
Director Young told the Minister they were full of questions
concerning our mil-mil relationship and his staff's support
to AIT and U.S. efforts in Taiwan.


5. (C/NF) The Director acknowledged the receipt of the
Minister's letter on F-16's and repeated that we had promptly
forwarded it to Washington where such decisions are made.
The Minister said he has been talking to the members of the
LY to stress the importance of the new F-16s. He underscored
the need to approve the F-16 item in the 2008 budget for the
MND to execute the sale without restarting the justification
and funding request next year. He reiterated Taiwan's desire
to obtain price and availability from the U.S. as soon as
possible but no later than "early next year" to meet Taiwan's
defense needs.


6. (C/NF) The Director emphasized that while Taiwan is
focused on acquisition of new weapon systems, it is important
to keep track of the entire stockpile of weapons, spares, and
logistic support for the existing systems. The Director also
emphasized the importance of the human factor such as pilot
training. The Minister affirmed as long as he is the
minister, the F-16 training program at Luke Air Force Base
will continue. He is looking forward to having similar
training programs in the U.S. for the P-3C, AH-64D, and

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UH-60M.


7. (S/NF) Referencing recent Taiwan news articles on SECDEF's
visit to China, the Director assured Minister Lee that there
has been no change to U.S. policy and that U.S engagement
with China will not come at the expense of Taiwan. He said
that SECDEF is dispatching a member of his China delegation
to brief Taiwan later this week.


8. (C/NF) The Director emphasized that the United States is
neutral with regard to the upcoming Taiwan presidential
elections. However, the U.S. expects to meet with the
President-elect soon after the election to ensure our defense
efforts remain on track.


9. (S/NF) The Director raised the discussion between Vice
Minister Henry Ko and DAS Tom Christensen last week in
Washington on missile development. He stressed the U.S.
still feels Taiwan has not provided sufficient transparency
on this subject and that we believe offensive missile
development could be disruptive to the regional stability and
might have legal implication in connection with the MTCR. He
said Taiwan will not be able to match China in military
terms. Taiwan must maintain the moral high ground and should
not give the PRC an excuse to portray Taiwan as provoking
conflict. The Minister averred Taiwan's commitment to
avoiding war and maintaining a defensive capability. When the
Minister informed us he would be seeing President Chen later
in the day, the Director urged him to report Vice Minsiter
Ko's exchange with DAS Christensen, which would build on the
Director's own recent exchanges with Chen Shui-bien on this
sensitive topic.


10. (S/NF) Comment. As in our previous meetings with the
Defense Minister, he had key members of his senior staff
arranged around the room, allowing us to convey USG positions
to the CGS and others at the same time. Minister Lee has
tried to improve on his predecessor's frosty relations with
the Taiwan legislature, which could have contributed to his
relative success at getting the 2008 defense budget out of
committee largely intact. Minister Lee used this occasion to
highlight his strong support for our bilateral security ties,
and to underscore the Taiwan military's official neutrality
in the island's fractious politics


11. (SBU) This cable has been cleared by Director Stephen M.
Young.
YOUNG