TAIPEI COUNTY MAGISTRATE CHOU HSI-WEI ON KMT

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 000434

SIPDIS

SIPDIS

E.O. 12958: DECL: 02/16/2027
TAGS: PGOV TW
SUBJECT: TAIPEI COUNTY MAGISTRATE CHOU HSI-WEI ON KMT
POLITICS AND LOCAL DEVELOPMENT


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


1. (C) Summary: During an introductory meeting with the
Director on February 15, Taipei County Magistrate Chou
Hsi-wei (KMT) suggested that friction between former KMT
Chairman Ma Ying-jeou and other pan-Blue leaders stemmed from
Ma's failure to treat them with sufficient "respect." Shy by
nature, Ma has kept his distance from others, and his
unwillingness to engage in traditional style politics has
prevented him from developing a rapport with ordinary
Taiwanese people. Chou expressed concern that Ma may not be
tough enough to compete in the 2008 presidential election
with the DPP, who will fight with all means to win elections
at any cost. Chou noted that Legislative Speaker Wang
Jin-pyng has told him he wants to run for president, adding
he believes Wang would settle for the KMT vice presidential
nomination under Ma. In addition to politics, Chou also
discussed plans for major investments in Taipei County and
steps being taken to stop the discharge of polluted waters
into tributaries of the Danshui River. End Summary.

Future Proposal to Combine Taipei City and County
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2. (C) During an introductory call on Taipei County
Magistrate Chou Hsi-wei (KMT) on February 15, the Director
asked about the KMT proposal to combine Taipei County and
City. Chou noted that Taipei Mayor Hau Long-bin and he
agreed that this was the right direction, and Vice President
Annette Lu was also supportive of the idea. The biggest
problem will be gaining Executive Yuan support, Chou said,
adding that Taipei City, treated as a special capital
district, has double the budget and three times the
administrative staff of Taipei County, despite its smaller
population. Currently, county and city governments are
beginning to work together more closely, and there is a bill
in the Legislative Yuan (LY) to bring the tax revenue of the
county into line with that of the city. In the future, after
the two governments have become familiar with each other and
harmonized regulations, then they will be able to merge if
the LY passes required legislation.

Economic Development
--------------


3. (SBU) Economic development is an important priority for
the county government, Chou stressed, adding that he had been
working hard to bring in more high-tech investment. Formosa
Plastics is making a major investment in the county, and
business tycoon Douglas Hsu has decided to build a
telecommunications R&D center in Banciao City. Chou noted
that he and other county officials had met with Hsu and his
team twice to resolve a series of problems that had led Hsu
to threaten to pull out of the project.

Stopping Water Pollution
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4. (SBU) In addition to economic development, Taipei County
is also focused on dealing with its environmental problems,
Chou noted. One important measure is to stop the flow of
polluted water into tributaries of the Danshui River. The
county now has the use of a major water treatment facility
that had previously been used by Taipei City. Stopping the
discharge of polluted water is only one step in the cleanup
of the Danshui River, Chou noted, as the river bottom remains
heavily polluted. Nonetheless, in the next few years, the
river's water quality will improve enough to allow boating
though not swimming.

Ma Ying-jeou's Weaknesses
--------------


5. (C) Turning to politics, Chou suggested that the high
point for the KMT was the December 2005 local elections.
Since then, former Chairman Ma Ying-jeou has proven "too
gentle." Ma may be too weak to compete with DPP candidates,
who are tough and willing to fight with all means to win at
any cost, including even their own integrity. Ma does not

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fit in with the traditional way of conducting politics in
Taiwan, Chou observed. Taiwan's local representatives are
elected not on the basis of integrity but personal
relationships and friendships, which are cultivated by
joining together and drinking tea or stronger beverages.
Appearing overdressed or over-educated can be a liability in
such settings. Ma, who is shy, keeps everyone at a distance
and does not give people a warm feeling. For example, Chou
recalled how Ma suddenly stopped talking to check his
schedule in the midst of an important discussion between Chou
and Ma about People First Party (PFP) Chairman James Soong.

Wang Jin-pyng and Lien Chan
--------------


6. (C) Chou confirmed the widespread impression that Ma does
not get along with LY Speaker Wang Jin-pyng, Honorary KMT
Chairman Lien Chan, or PFP Chairman James Soong. They would
like Ma to work with them but do not feel that Ma respects
them. Ma's problems with Wang began before the 2005 election
for KMT chairman at which time Ma cast himself as a "saint"
and identified Wang with KMT corruption. Chou said he now
talks to Wang Jin-pyng once a week, adding that just after
the announcement of Ma's indictment, Wang had told him that
he wanted to run for president. Chou added that he believed
Wang would accept the vice presidential nomination under Ma.
On Ma's problems with Lien Chan, Chou noted that in 2005 Lien
had hoped to stay on as party chairman for one more year
until 2006. Lien's proposal was that Ma could become
chairman after he had stepped down as Taipei mayor. Ma,
however, rejected this idea. Recently, Chou noted, Ma had
tried to talk to Lien, but Lien had complained that "Ma is
not sincere."

Mainlanders with the Common Touch Can Win Taiwanese Votes
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7. (C) Chou cited his own experience to show that a second
generation Mainlander could win election in a heavily
Taiwanese district such as Taipei County, which is 70 percent
Taiwanese and 15 percent Hakka. Noting that he had grown up
in Taipei County and City, Chou pointed out that he had
become fluent in Taiwanese after being elected to the former
Taiwan Provincial Assembly in 1994. Chou said he now spoke
Taiwanese "all the time," often wore blue jeans when visiting
local areas, and the local people accepted him. Asked about
upcoming LY elections in Taipei County, Chou predicted the
pan-Blue will win 7-8 of the total 12 seats, though the
actual results will depend on the candidates, who have not
yet been selected.

Defense Budget
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8. (C) The Director expressed hope that the LY will soon
pass the defense budget. Chou observed that Ma has agreed to
the defense budget and James Soong has given up his efforts
to prevent PFP members from voting for arms procurement.

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


9. (C) Chou's candid criticism of Ma, despite Ma's having
campaigned heavily for him in December, 2005, reflects a
widespread frustration with Ma's inability to capitalize on
his earlier popularity and assert strong leadership over the
KMT. Ma's recent indictment for corruption further
complicates his prospects for winning the presidency in 2008.
That said, most within the KMT believe that Ma remains their
only viable candidate for 2008 and their hope is that over
the coming months Ma will focus on enhancing his appeal to
ordinary Taiwanese voters. Chou, who met with us alone,
comes across as personable and down-to-earth, focused on
local issues, but also a shrewd observer of pan-Blue
leadership politics.
YOUNG