PRESIDENT MA YING-JEOU ON BILATERAL RELATIONS,

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 001160 SIPDIS STATE PASS USTR FOR STRATFORD AND KATZ USDA FOR FAS/OCRA FOR RADLER, BEILLARD, FAS/OSTA FOR HAMILTON, BEAN, DAWSON, FAS/OFSO FOR BREHM E.O. 12958: DECL: 08/07/2018 TAGS: PREL PGOV ETRD EAGR TW SUBJECT: PRESIDENT MA YING-JEOU ON BILATERAL RELATIONS, BEEF, AND INTERNATIONAL SPACE Classified By: AIT Director Stephen M. Young, Reasons: 1.4 (b/d) ¶1. (C) Summary: During a meeting with the Director on August 7, President Ma said he was "very impressed" by President Bush's recent positive remarks on the current state of cross-Strait relations. The Director urged Taiwan to act quickly on opening its market to all U.S. beef products, noting that this subject is likely to come up during Ma's U.S. transit stops next week. Ma confirmed that the cabinet is developing an action plan and said he would prepare himself to discuss the issue next week during his transits. The Director expressed our desire to be helpful on Taiwan's participation in APEC, and he urged Taiwan to exercise restraint at the upcoming UNGA. Ma said Taiwan understands the sensitivities and will focus on participation in WHO and WHA. End Summary. ¶2. (C) The Director met with President Ma Ying-jeou at the Presidential Office on August 7 to discuss bilateral relations, U.S. beef imports, and Taiwan's quest for greater international space. (Other subjects reported septel, NOTAL.) Ma was accompanied by NSC Secretary General Su Chi. U.S. Supports Positive Cross-Strait Developments -------------- --- ¶3. (C) The Director noted that some Taiwan media reports have suggested the U.S. is concerned cross-Strait relations are developing too quickly and in a way that will undermine our strategic interests. Such reports are inaccurate, the Director assured Ma. The U.S. appreciates Taiwan's efforts to lower tensions with China and has no objection to developments based on mutual dignity and equality. Our only concern is that Taiwan not be coerced or bullied by China. We regard movement on cross-Strait flights, tourism, and increased contacts as positive developments. ¶4. (C) Ma emphasized that he understood this point very well. Members of visiting U.S. thinktanks have been saying the same thing, that moving ahead on cross-Strait relations is good so long as it is peaceful. What the KMT has done so far, Ma asserted, represents steps the DPP would like to have taken but did not have the "guts" to do. Now, however, the opposition is accusing Ma's administration of moving too fast and damaging mutual trust between the U.S. and Taiwan. ¶5. (C) The Director complimented Ma on his August 4 speech at the Foreign Ministry, in which Ma referred to President Bush's positive assessment of recent cross-Strait developments. Ma said he was very impressed that President Bush had recently said publicly he was pleased to see the improvement in cross-Strait relations. President Bush had also mentioned that there should be no unilateral change to the status quo, which Ma interpreted as an indirect reference to President Bush's criticism of Chen Shui-bian in a December 2003 press conference with PRC Premier Wen Jiabao. In 2003, Ma said, "we understood that President Bush was very annoyed" at actions Chen should not have taken. In contrast to Chen, Ma stated that he is following a "no surprises" policy, both toward the U.S. and also toward China, for whom saving face is very important. Understanding the sensitivities of its relations with the U.S., Taiwan will be very careful, Ma stressed. Beef -------------- ¶6. (C) The Director, noting high level interest within the Bush Administration, suggested an early resolution to market access for all U.S. beef would be most welcome in Washington. The Director reviewed the discussions he and others, including USTR's Tim Stratford, have been having with many TAIPEI 00001160 002 OF 002 Taiwan officials on this issue. The highest levels in Washington are focused on the beef issue, he explained; we would like to see a science-based solution as soon as possible. Noting that Su Chi had talked about developing an action plan, the Director urged Ma to build on the previous administration's work on the issue, speed up the review process, and look for an early opportunity to make a science-based decision. ¶7. (C) This subject is likely to come up during President Ma's upcoming transits, and the Director urged Ma to be prepared to respond positively. There are many other important issues on the economic agenda, the Director explained, like IPR, a possible bilateral investment agreement, and getting Taiwan to join the WTO's Government Procurement Agreement. We do not want to see progress in these areas slowed down because of the beef issue. Ma said he understood that the relevant ministries are now working on an action plan, but added that he had not been involved in the process and had not yet been briefed. However, he stressed, he would prepare himself on the beef issue should it come up with U.S. interlocutors during his west coast transits next week. International Organizations -------------- ¶8. (C) Noting that he was looking forward to meeting with FM Ou later in the day to hear about Taiwan's plans for this year's UNGA, the Director expressed hope that Taiwan would take a restrained approach. This would enable the U.S. and other friends to press Beijing to be more flexible on the issue of Taiwan's international space, he explained. Ma said he understood the sensitivities of this issue. Taiwan will focus on the WHO and WHA, and does not want the PRC to think Taiwan "wants everything." According to Ma, arranging a diplomatic truce between Taiwan and China (i.e., not to go after each other's allies) would be like a contract that remains in force only so long as one or the other side does not violate it. With political will, there could be a diplomatic truce, but there would need to be work on rules for implementation. For China, Ma added, the marginal utility of adding one more diplomatic ally is very small compared to the harm done to the dignity of the Taiwan people. APEC -------------- ¶9. (C) Turning to the upcoming APEC meeting in Peru in November, the Director noted our efforts over the years to ensure Taiwan was treated as a full member of the organization. Over the past several years, Beijing has blocked a number of people Taiwan had hoped to send as representatives to the APEC informal leaders meeting. The Director said the U.S. would like to be helpful and encouraged Ma to keep us informed of developments this year. Ma welcomed such exchanges. Comment -------------- ¶10. (C) Ma is seeking steps designed to improve what he called in Monday's MOFA speech Taiwan's "first and foremost" relationship. On the eve of his first transit of the U.S., we wanted to highlight for the new president some areas where we should be working closely and collaboratively with one another. Hopefully, U.S. interlocutors will follow up on these subjects, especially beef, during the transit. YOUNG