KMT CHAIRMAN WU POH-HSIUNG DISCUSSES INTERNATIONAL

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 001292

SIPDIS

E.O. 12958: DECL: 08/27/2018
TAGS: PGOV PREL CH TW
SUBJECT: KMT CHAIRMAN WU POH-HSIUNG DISCUSSES INTERNATIONAL
SPACE AND ARMS SALES WITH PRC LEADERS

Classified By: AIT Acting Director Robert S. Wang,
Reasons: 1.4 (b/d)


1. (C) Summary: In a meeting with the Acting Director on
August 27, KMT Chairman Wu Poh-hsiung discussed his recent
meetings in Beijing with PRC President Hu Jintao, Central
Standing Committee member Jia Qinglin, and Taiwan Affairs
Office Director Wang Yi. PRC leaders raised concerns about
Taiwan's new UN initiative, maintaining that international
pressure could make it more difficult to show flexibility
toward Taiwan at the World Health Assembly next May. Wu
assured Chinese leaders that Taiwan's UN initiative will be
low key and he explained the domestic political reasons why
the KMT has to submit a proposal at the UN. He told Wang Yi,
who objected to U.S. arms sales to Taiwan, that Taiwan has to
maintain a credible defense. Wu reiterated to A/DIR that
Taiwan hopes the U.S. administration will move ahead on
pending arms sales notifications to Congress. On domestic
politics, Wu said President Ma Ying-jeou is currently
resisting his suggestion that Ma serve concurrently as party
chairman. Wu said he would be prepared to serve a second
term if necessary to avoid a divisive chairmanship election
next year. End Summary.


2. (C) The Acting Director and KMT Chairman Wu Poh-hsiung
discussed cross-Strait relations, including Wu's recent trip
to China for the Olympics opening ceremony, in a meeting at
party headquarters on August 27. Wu was accompanied by
former TECRO Representative Stephen Chen. Wu told the A/DIR
that his trip to China, which in addition to the Olympics,
also included visits to the northeast and to his ancestral
home district in Fujian, had gone well. However, he had felt
somewhat overwhelmed and constrained by the high-level
reception by provincial party secretaries and the large
number of activities at each stop.


3. (C) Wu noted that the Olympics opening ceremony
highlighted China's traditional culture, which Beijing is now
bringing back after the destruction of the Cultural
Revolution. Wu said he was also struck by the strong
nationalistic feelings of the people in China, as
demonstrated by how loudly the audience sang the PRC national
anthem at a concert put on by the Cincinnati Orchestra that
he attended. Given the current strength of nationalism, Wu
worried that moderate voices in China would not be able to
speak out.

UN Initiative
--------------


4. (C) In Beijing, Wu had a twenty-minute meeting with PRC
President Hu Jintao and also had discussions with Central
Standing Committee member Jia Qinglin and Taiwan Affairs
Office (TAO) Director Wang Yi during meals they hosted. Wu
said he explained to Chinese leaders why the KMT, for
domestic political reasons, had to make a proposal this year
at the UN on Taiwan's wish to participate in UN technical
agencies. He assured the Chinese that Taiwan's approach
would be low key. PRC leaders were concerned that Taiwan's
new initiative could lead to a confrontational debate at the
UN on the issue. This would make it more difficult for
Beijing to show flexibility at the WHA next May, because
Beijing does not want to give the impression that it is
acting under pressure from major powers in the UN. Beijing
wants to decide on its own, without international pressure.
PRC leaders also stressed that Taiwan should not violate the
one China principle.

Diplomatic Truce
--------------


5. (C) Wu said he talked to PRC leaders about Taiwan's
proposal for a "diplomatic truce" in which neither side would
lure away the other's diplomatic allies. Wu pointed out to
the Chinese that the competition over diplomatic allies
wasted the resources of both sides and also increased the

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Taiwan people's dislike of the PRC. While PRC leaders are
considering the issue, the Foreign Ministry has a tougher
view, Wu observed.

Arms Sales
--------------


6. (C) In one exchange, Wu recalled, Wang Yi had stressed
that China consistently opposes arms sales to Taiwan. Wu
said he responded that Taiwan has to do something: "How can
we not be able to defend ourselves?" PRC leaders were
concerned President Bush might say something about arms sales
to Taiwan while he was in China, but Wu told them he did not
expect this to happen. Wu told A/DIR that he hoped pending
arms sales would be notified to Congress, remarking "there is
no need to delay."


7. (C) The A/DIR asked Wu whether he was concerned Beijing
might not see any need or incentive to be flexible to Taiwan,
as a U.S. scholar had recently suggested. In the scholar's
view, Beijing is not afraid of the DPP because it had
successfully weathered eight years of DPP rule. Wu rejected
the argument, maintaining that Beijing has shown flexibility
since 2005 when it reached a five-point agreement with then
party Chairman Lien Chan. As a recent example of
flexibility, Wu cited the PRC decision not to receive a visit
by Paraguayan President Lugo, who was hoping to switch
relations from Taipei to Beijing.

Domestic Politics
--------------


8. (C) Turning to domestic politics, Wu expected support for
President Ma Ying-jeou to gradually increase in public
opinion polling. Previously, pan-Blue supporters believed Ma
lacked boldness because he was not aggressively pursuing the
corruption case against former President Chen. This view
changed, however, when Ma approved the release of documents
related to the case that Chen had tried to claim were
classified.


9. (C) Wu claimed credit for the proposal that Ma should
serve concurrently as party chairman, as a means of unifying
government and party leadership. Ma initially rejected the
suggestion, however, because he wanted to be seen as the
president of all the people rather than the leader of just
one party. Wu told A/DIR he would like to retire when his
term as party chairman ends in August 2009. However, he
added, he would be prepared to serve another term if it would
prevent a divisive election battle for the position and Ma
remains unwilling to assume the position.

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


10. (C) Wu seemed a bit taken aback by the PRC's negative
reaction to Taiwan's new UN initiative as well as by the
nationalistic mood he encountered in Beijing. The KMT
believes it has to show progress on participation in
international organizations, especially WHO, to prove to the
public here that its forward-leaning cross-Strait engagement
policy benefits Taiwan.
WANG