MEDIA REACTION: U.S.-CHINA-TAIWAN RELATIONS

UNCLAS AIT TAIPEI 000172 SIPDIS SIPDIS DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - NIDA EMMONS DEPARTMENT PASS AIT/WASHINGTON E.O. 12958: N/A TAGS: OPRC KMDR KPAO TW SUBJECT: MEDIA REACTION: U.S.-CHINA-TAIWAN RELATIONS Summary: Taiwan's major Chinese-language dailies focused news coverage February 2-4 on the upcoming Lunar New Year holidays, on the March presidential poll and the UN referenda, on President Chen Shui-bian's landmark visit to Taiping Island in the disputed Spratly Islands Saturday, on the annual national college entrance examination Friday and Saturday, and on Microsoft Corp's offer to buy Yahoo last Friday. In terms of editorials and commentaries, an editorial in the pro-independence "Liberty Times" discussed AIT Taipei Director Stephen Young's recent call on KMT Chairman Wu Poh-hsiung. The article said the United States should facilitate, not oppose, Taiwan's UN referenda. An editorial in the centrist, KMT-leaning "China Times" discussed the U.S. sub-prime mortgage crisis and its impact on Asia's and Taiwan's economies. An editorial in the pro-independence, English-language "Taipei Times" discussed the possible U.S. recession and the heavy blizzards China is suffering now and said the Taiwan government "has every reason to keep a close watch" on future developments. End summary. A) "The United States Ought to Facilitate Rather Than Boycott the Referenda [for Taiwan] to Join or Re-join the UN" The pro-independence "Liberty Times" [circulation: 720,000] editorialized (2/2): "AIT Taipei Director Stephen Young has reportedly called on KMT Chairman Wu Poh-hsiung recently and again expressed Washington's concerns over the referenda to join and re-join the UN, hoping that it will not turn into a race between the Blue and Green camps. Wu, on the other hand, said the KMT's preexisting attitude [over its referendum] was to maintain the island's national dignity and complete sovereignty, and that he hopes the Legislative Yuan will come up with a resolution which will be acceptable both to the ruling and opposition parties. In fact, behind the words and deeds of both Young and Wu, lies their real concern - China. The referenda regarding recovering the [KMT's ill-gotten] party assets [proposed by the DPP] and against corruption [proposed by the KMT], respectively, held in tandem with the legislative elections on January 12, both failed to pass because they did not receive participation by the required fifty percent of all eligible voters [to pass the threshold for referendum validity]. Anyone with �A;insight is worried about whether the referenda [for Taiwan] to join or re-join the UN will have a chance to pass in the future. Given such circumstances, the U.S. side remained persistent in opposing the UN referenda, and it is a great pity to see how Washington ignores the Taiwan people's aspirations [for Taiwan to] become a normal country. "Didn't it ever occur to the U.S. government that if the UN referenda were to be withdrawn or fail to pass just because of the ultimate factor of China, the result will be twisted by China and interpreted as following -- the Taiwan people are not interested in joining the UN; they don't believe that Taiwan is a country; [and] Taiwan is [indeed] part of the People's Republic of China? Such an interpretation will result in the hollowing out of the foundation for the 'Taiwan Relations Act' and will instead serve as a [useful] cue for the 'Anti-Secession Law.' Should this happen, it will be too late for the United States to express concerns about peace and stability in the Western Pacific area. "Perhaps the U.S. government believes that it is the United States' national interests to avoid touching the sensitive nerve of U.S.-China relations. But in the long run, if China is allowed to act at its own discretion and use the rope of the 'one China principle' to tie up Taiwan in the international community, how is the United States going to 'provide Taiwan with arms of a defensive character' once Taiwan degenerates into becoming part of China or its domain of power? How will Washington be able to prevent China from 'using non-peaceful means to determine Taiwan's future?' Should this happen, will it be consistent with the United States' national interests? ..." B) "Taiwan Can Hardly Keep out of the U.S. Sub-prime Mortgage Crisis" The centrist, KMT-leaning "China Times" [circulation: 400,000] editorialized (2/4): "... With the U.S. economics sliding into recession, will the emerging markets in Asia be able to dodge a disastrous outcome? An International Monetary Fund report said that emerging markets are maintaining their high growth rates and will become the engine for global economic development. But shrouded by the effects of globalization, not a single country in the world can be exempted from the influence of (economic recession). Taiwan, in particular, whose economics is closely related to the U.S. market and whose economic growth relies solely on exports, will face severe challenges. ..." C) "Economic Blizzard Is a Harsh Reality The pro-independence, English-language "Taipei Times" [circulation: 30,000] editorialized (2/4): "The unusually harsh winter weather in parts of China has put a great deal of economic activity on hold over the past three weeks, but the worst may be yet to come... In the context of a global economy stained by the US subprime fallout and whispers of a US recession, it is unclear how markets would stand a slowdown in the Chinese economy. And if the situation continues to deteriorate in the US, it is not clear how Chinese policymakers will react should that cut into exports. The situation is delicate and the effects of China's poor infrastructure in combination with a cruel winter could multiply. With its many business [sic] across the Taiwan Strait, Taiwan's government has every reason to keep a close watch." YOUNG