KMT CHAIRMAN WU POH-HSIUNG ON DOMESTIC POLITICS

C O N F I D E N T I A L SECTION 01 OF 03 TAIPEI 001628

SIPDIS

E.O. 12958: DECL: 11/18/2023
TAGS: PGOV PREL CH TW
SUBJECT: KMT CHAIRMAN WU POH-HSIUNG ON DOMESTIC POLITICS
AND CROSS-STRAIT RELATIONS

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


1. (C) Summary: KMT Chairman Wu Poh-hsiung told the Director
on November 17 that PRC ARATS Chairman Chen Yunlin had seemed
satisfied with his visit to Taiwan, despite the protests. Wu
was concerned that violence in some of the demonstrations
would give the mainland a bad impression of Taiwan's
democracy. He reported that Honorary Chairman Lien Chan will
lead the Taiwan delegation to the KMT-CCP economic forum in
Shanghai in mid-December. Wu stressed the KMT absolutely
would not interfere in the legal cases of former President
Chen or others, and he said the KMT was making an effort to
prevent the partisan atmosphere from worsening. However, he
added, leaders in both the KMT and DPP were under pressure
from their respective hardliners to be tougher. The KMT will
hold a special party congress on November 22, the first since
returning to power in May. End Summary.

Chen Yunlin Visit
--------------


2. (C) In a meeting at KMT headquarters on November 17, the
Director discussed cross-Strait relations and Taiwan domestic
politics with KMT Chairman Wu Poh-hsiung, who was accompanied
by former TECRO Representative Stephen Chen. Wu observed
that PRC Association for Relations Across the Taiwan Strait
(ARATS) Chairman Chen Yunlin had shown good will and seemed
satisfied with his November 3-7 visit to Taiwan, despite the
protest demonstrations. Although demonstrations were all
right, Wu said, the violence was regrettable and would give
people in the mainland a bad impression of the democratic
example Taiwan has been promoting. Wu expressed appreciation
for U.S. public expressions of support for progress in the
cross-Strait dialogue.

KMT - CCP Dialogue
--------------


3. (C) Wu said the next round of the KMT-CCP economic forum
will be held in Shanghai in mid-December. Honorary Chairman
Lien Chan heads the KMT's National Policy Foundation, which
is responsible for the forum, and he will lead a delegation
of more than 100 persons. Wu contrasted the KMT-CCP
discussions as more academic, while the talks between the
Straits Exchange Foundation (SEF) and ARATS are technical in
nature. (Note: In a separate meeting on November 19, KMT
Deputy Secretary General Chang Jung-kung told us that the
forum in Shanghai is scheduled for December 13-14 and that
the KMT expects PRC Politburo Standing Committee member Jia
Qinglin, but not PRC President Hu Jintao, to attend. Chang
noted that Beijing had hoped the KMT could include some DPP
members in its delegation, but the KMT did not believe it
could find DPP people willing to attend. Chang said the next
round of SEF-ARATS talks may take place in March 2009 in
China, and the KMT would like to hold the next session of the
party-to-party forum in June 2009 (location TBD),before the
campaigns for the December 2009 local elections get going in
earnest.)

DPP - KMT Friction
--------------


4. (C) Noting the feelings of frustration on the DPP side
following the Chen Yunlin visit and the recent detentions of
President Chen and two DPP county magistrates, the Director
suggested the KMT needed to avoid overusing its dominant
political advantage in ways that could further anger the
opposition. Wu agreed that the KMT needed to pay attention
to this point, and he noted that he had asked KMT legislators
to avoid provoking the DPP and to respect the minority in the
Legislative Yuan (LY). For example, Wu said, he had
requested the KMT caucus to go slow in action on the four
SEF-ARATS agreements.


5. (C) Wu explained, however, that there are also those who
believe the KMT has been too weak toward the DPP. Likewise,
on the DPP side, supporters of Taiwan independence regard
Chairperson Tsai Ing-wen as having been too weak toward the

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KMT. Although there have been suggestions about a possible
KMT-DPP dialogue, Tsai Ing-wen is in a difficult position
politically. Wu added with apparent irritation that Tsai
sees President Ma, not himself, as her counterpart. (Note:
Chang Jung-kung expressed concern to us that partisan
political turmoil, including demonstrations and even
violence, may increase because pro-DPP activists see every
move by Ma Ying-jeou to improve cross-Strait relations as a
negation of Taiwan independence. The unhappiness of DPP
supporters with the prosecutors' pre-indictment detention and
handcuffing of former President Chen and other DPP figures is
further souring the political atmosphere.)

Chen Shui-bian
--------------


6. (C) Wu said he was not worried about former President
Chen Shui-bian, under detention on corruption charges,
barring a possible health problem resulting from his hunger
strike. Most people do not believe Chen merits their
sympathy, Wu explained, and in his view, Chen is a bigger
problem for the DPP than for the KMT. Wu stressed that the
KMT and the administration would absolutely not interfere
with the law. The party would not be so dumb as to interfere
in legal proceedings against Chen or other DPP politicians,
Wu assured the Director. He suggested that one reason there
are more DPP than KMT cases now is because the DPP was the
ruling party for the past eight years.

Student Sit-in
--------------


7. (C) The students sitting at Freedom Square to protest
alleged police violence and demand revisions to the law on
demonstrations are being manipulated and stirred up by people
behind the scene, Wu asserted. These people include former
DPP Presidential candidate Frank Hsieh and some professors
who are related to the DPP. While the students criticize
police violence, they do not criticize violence by
protesters. Nonetheless, the KMT administration is dealing
with these students "very softly," even though they are
interfering with the rights of those who normally do their
daily exercises at the same location.

KMT Special Party Congress
--------------


8. (C) Wu noted that the KMT will be holding a special party
congress this Saturday, November 22, at the Sun Yat-sen
Memorial. More than 1500 delegates will participate in the
congress, which is being held because of the KMT's return to
power in May. There will be speeches by President Ma and Wu
and reports by Premier Liu Chao-shiuan and Legislative Yuan
(LY) Speaker Wang Jin-pyng. The Central Standing Committee
will be expanded from 33 to 39 seats, the new members
including a second youth representative and five government
officials who will serve in an ex officio capacity. The
congress will probably also fill 2-3 vice chairman vacancies.
The full complement is six vice chairmen, but the party is
now down to just three vice chairmen. Wu said the party is
looking for relatively young people to fill these vacancies,
and he acknowledged that Taoyuan County Magistrate Eric Chu
is a candidate. (Note: Chang Jung-kung told us the party
needs some new vice chairmen to fill the many requests from
Beijing for senior KMT leaders to attend ceremonial events in
China. Chang also said the Congress will not take up
suggestions made in the past by some that President Ma should
serve concurrently as party chairman. Ma has his hands full
with the presidency, Chang explained.) The Congress may
also adopt a proposal that would suspend the party rights of
those convicted in the first stage of Taiwan's three trial
process, though some local politicians object.

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


9. (C) Although Wu and others recognize that DPP unhappiness
with the KMT could lead to more turmoil in the streets, they
do not at this point seem to have good ideas on how to

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improve the political atmosphere. DPP dissatisfaction is
focused both on the KMT's cross-Strait policy and on their
perception that prosecutors are going after DPP politicians
selectively and treating them in a humiliating way.
Underlying these immediate grievances is the widespread
frustration in the opposition camp that their political
strength is not reflected in the current legislature, as well
as a "hangover" effect from losing power so quickly and
completely earlier this year. Today, however, the news is
filled with stories about "consumption vouchers" that the
government will be distributing to all citizens, and this may
provide a temporary respite from the normal focus on partisan
disagreements.
SYOUNG