NEW KMT CHAIRMAN AND PARTY POLITICS

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 000781

SIPDIS

SIPDIS

E.O. 12958: DECL: 04/09/2032
TAGS: PGOV TW
SUBJECT: NEW KMT CHAIRMAN AND PARTY POLITICS


Classified By: AIT Acting Director Robert S. Wang,
reason(s):1.4 (B/D).


1. (U) Summary: Former KMT Vice Chairman Wu Poh-Hsiung was
elected the new KMT Chairman on April 7. He will assume
office on April 11, and will serve until August 2009. Wu is
a key ally of Ma Ying-jeou, and his election will facilitate
Ma's continued control over party affairs. Wu announced that
his primary task will be to convince Ma and KMT Legislative
Yuan (LY) Speaker Wang Jin-pyng to set aside their
differences and join forces on the same presidential ticket.
Wu must also limit the number of KMT candidates running in
this December's legislative elections to avoid spreading the
Blue vote too thin and losing to the ruling DPP. End Summary.

Wu Wins Landslide Victory
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2. (U) On April 7, the KMT held a by-election to replace
former KMT Chairman and current presidential candidate Ma
Ying-jeou. Ma resigned as Chairman in February after being
indicted for allegedly embezzling government funds while
Mayor of Taipei City. KMT Vice-Chairman Wu Poh-hsiung became
acting Chairman, until he declared himself a candidate in the
contest to replace Ma. Wu's only challenger was KMT
Legislator Hung Hsiu-chu. With 87 percent of the vote, Wu
handily defeated Hung. He will formally assume the Chairman
post on April 11, and will serve until August 2009, when the
KMT will host its 18th National Congress, and will elect a
new Chairman.

Ma Complicates Things
--------------


3. (U) After the election, Wu pledged to push for party unity
and to lead the KMT to victory in both the legislative and
presidential elections. These will not be easy tasks. Ma
Ying-jeou launched his presidential candidacy on the same day
he was indicted for corruption. Before Ma's indictment, KMT
rules barred indicted members from participating in party
primaries. Under Wu's leadership as acting Chairman, and
over the objection of several prominent KMT leaders,
including Ma's presidential rival, LY Speaker Wang Jin-pyng,
this rule was deleted.


4. (U) Ma's corruption trial began on April 4, with Ma's
innocent plea. Since then, Ma has vowed to continue his
presidential campaign even if he is convicted after his first
trial. (Note: Taiwan's criminal justice system entitles a
defendant to three trials before a conviction is deemed
"final." End note.) The KMT is currently considering
amending the party constitution, this time to allow the KMT
to nominate a convicted KMT member for the 2008 presidential
race.

Wang Stirs the Pot
--------------


5. (C) Claiming the KMT presidential primary process was
fixed in favor of a "particular candidate," Wang did not
declare his formal candidacy. He could still get the
nomination if Ma were to be disqualified by a conviction.
Biding his time, Wang has borrowed heavily from the DPP's
anti-Ma playbook to frustrate his rival. On April 2, Wang
played the "ethnic card," questioning whether it was wise of
the KMT to allow "the political elite of a minority ethnic
group" (Mainland-born KMT) to "govern (the) majority ethnic
group" (ethnic Taiwanese). On the same day, Wang publicly
challenged the KMT to return its "stolen assets" to the
public. After the result of the KMT Chairmanship election
was announced, Wang stated publicly that a decision by the
"new KMT leadership" (Chairman-elect Wu) to revise the party
constitution to allow convicted members to stand for election
would "deprive the party of its founding ideas and may lead
to a split in the party."

Lien to the Rescue?
--------------


6. (U) Seeking to avoid another party split, Chairman-elect
Wu publicly pledged to make cooperation between Ma and Wang
his top priority, and promised to arrange a meeting between

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Ma, Wang, and KMT Honorary Chairman Lien Chan before Lien
departs for his scheduled trip to China on April 26. The
three men last met on February 16. Although Ma and Wang
failed to agree on who should receive the presidential
nomination at that time, each agreed to invite the other to
be his running mate, regardless of who won the nomination.
Wu has insisted publicly that the promise remains unchanged,
which suggests he will continue to pursue a Ma-Wang
presidential ticket.

Another Headache: Too Many Legislators
--------------


7. (U) According to the Taiwan press, 152 KMT members intend
to run in December's LY elections, and 103 have already
registered. The problem is that, with the reduced LY (from
225 to 113 seats),only 79 district seats and 34 at-large
seats will be up for grabs. If two or more KMT candidates
(one perhaps running as an independent candidate) compete in
any one district, the KMT runs the risk of dividing its voter
base and handing the race to the DPP candidate. Under Wu's
leadership, the KMT must dissuade disgruntled would-be
candidates from running against the party's nominees or face
losing races (and control of the LY) to the DPP.

Bio Note
--------------


8. (U) Wu Poh-hsiung was born in 1939, in Taoyuan County,
Taiwan. He graduated from Taiwan's Cheng-kung University with
a business management degree in 1962. Wu served as Interior
Minister 1984-1988 and 1991-1994, Taipei City Mayor
1988-1990, Presidential Office Secretary General 1994-1996,
KMT Secretary General 1996-1997, and KMT Vice Chairman
2000-early 2007. Wu served as Ma Ying-jeou's Taipei mayoral
campaign manager in 1998 and again in 2002. He is married to
Dai Mei-yu, and has two sons and one daughter. He received
an IV grant in 1971.
WANG