KMT VICE CHAIRMAN CHAN CHUEN-PO ON CHEN-MA

C O N F I D E N T I A L SECTION 01 OF 03 TAIPEI 000481

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E.O. 12958: DECL: 3/04/2023
TAGS: PGOV TW
SUBJECT: KMT VICE CHAIRMAN CHAN CHUEN-PO ON CHEN-MA
MEETING, GOVERNMENT TRANSITION, AND PARTY REFORM


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


1. (C) Summary: KMT Vice Chairman Chan Chuen-po told the
Deputy Director on April 3 that the meeting between President
Chen and President-elect Ma Ying-jeou on April 1 was cordial
and upbeat. In addition to debating the "92 consensus," Chen
assured Ma his most important task in the next two months is
ensuring a smooth transition of power. During their closed
door session, the two talked mainly about foreign relations,
with Chen urging Ma to continue the various programs and
initiatives his administration has with diplomatic partners
in Central America and the South Pacific. Chan said
preparations for the May 20 presidential inauguration are
proceeding smoothly, with approximately 600 foreign VIP
guests expected to attend. After the inauguration, the Ma
administration will focus on improving the economy to meet
the people's high expectations. Vice president Vincent Siew
will play a leading role as "overall architect of economic
policy," Chan added. End Summary.

Chen-Ma Meeting Upbeat
--------------


2. (C) The Deputy Director met with KMT Vice Chairman Chan
Chuen-po on April 3 to discuss the recent meeting between
President Chen and president-elect Ma Ying-jou, transition
and inauguration preparations, and Kuomintang (KMT) party
politics. Chan, who headed Ma's campaign and now heads Ma's
transition team, said the meeting on April 1 between Ma and
Chen at the Taipei Guest House was cordial and upbeat. The
initial portion of the meeting, broadcast live, lasted longer
than initially planned because Chen, as typical, became
carried away as he debated Ma on the merits of the "1992
consensus," which the two had similarly discussed during
their last meeting in 2006. Chan, who attended the meeting,
said Chen rejected the rationale for the "one China,
different interpretations" idea, which aims to provide enough
ambiguity to allow each side to resume talks without
recognizing but also not denying the other.


3. (C) After the public exchange in front of the cameras,
Chen and Ma held a closed-door half-hour meeting to discuss
national security, foreign affairs, and other matters
relating to the upcoming transition. Chan said the two
talked mainly about foreign relations, with Chen detailing
the various programs and initiatives his administration has
with diplomatic partners in Central America and the South
Pacific. Chen urged Ma to continue his efforts, stressing
the challenges Taiwan has faced from Beijing in maintaining
relationships. The two also discussed Taiwan's approach
toward the upcoming World Health Assembly meeting on May 19,
Chan said, adding that "meaningful participation" is more
practical than membership or observership, which are
currently unattainable. Chan said the meeting between Chen
and Ma was "pleasant."

Government Transition
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4. (C) Chan said President Chen also assured Ma his most
important task in the next two months is ensuring a smooth
transition. Chan noted there are no regulations or laws
governing a presidential transition, so most of the work will
be ad hoc and up to the individuals from both sides to
arrange. President Chen has appointed Presidential Office
Secretary General Mark Chen (Tang-shan) to head the

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Presidential Office transition team, which will be in close
coordination with Chan's team. Chan said he would begin
discussing transition arrangements in a meeting later in the
afternoon with Mark Chen, whom he described as a "gentleman."



5. (C) Chan said his responsibilities focus on managing the
transition in the Presidential Office. Ma will appoint or
delegate others to handle the transition at various
ministries and lower level agencies. Chan said his
priorities are to gain a better understanding of pending
programs and issues at the Presidential Office, office budget
and operations affairs, staffing and personnel matters,

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official residences for the president and vice president and
security arrangements, and inauguration ceremony
arrangements.

Inauguration Plans
--------------


6. (C) Chan told the Deputy Director that preparations for
the May 20 Inauguration are proceeding smoothly. Activities
for the approximately 600 foreign VIP guests are intended to
showcase Taiwan's development and progress. On May 20, the
day will begin early in the morning with a formal swearing-in
ceremony at the Presidential Office, with attendance limited
to 300 people. Ma will then proceed to the Taipei Arena to
deliver his inaugural address at 9:30 a.m. to a crowd of
10,500 guests. He will then accompany the 600 foreign guests
on a tour of the Maokong cable car and surrounding mountains
around noon.


7. (C) At about 3 p.m. Ma and the guests will then take the
High Speed Rail to Kaohsiung to attend the formal state
banquet for 1,200 people at the Hanlai Hotel. Foreign guests
will also be taken on an evening tour of the Love River, an
affirmation of DPP presidential candidate Frank Hsieh's
contributions as Kaohsiung mayor, and a morning tour of
Kaohsiung harbor the following day before returning to
Taipei, where they will be given the option of visiting the
Taipei 101 building. Chan added that Ma, who leads a simple
lifestyle, will not stay in the hotel's presidential suite so
that the other heads of state and guests can be accommodated
at the same hotel. Chan added that foreign policy advisor
John Feng, who worked on the 2000 inauguration when he was
head of the Foreign Ministry Protocol Department, is
organizing the KMT's inaugural program for foreign VIPs.

Personnel Appointments, KMT Politics
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8. (C) Chan said Ma's administration will from the outset
focus on improving the economy, which is the main issue Ma
ran on and on which people expect him to deliver. Ma has
made clear that Vice President Vincent Siew will play an
important role in the administration and is expected to serve
as the "chief architect" for economic policy. Siew will not
serve concurrently as premier; nevertheless Chan said Siew
would have some say in Ma's selection of the next premier,
who at a minimum will be someone who has a close working
relationship with Siew.


9. (C) Turning to party affairs, Chan said that during the
KMT's April 2 Standing Committee meeting Chairman Wu
Poh-hsiung emphasized that despite a strong showing in the
legislative and presidential elections the party has three
main areas for improvement. First, party grassroots
organizations need to be strengthened. Second, remaining
party assets must be properly sold off to eliminate their
"political burden" on the party and to provide funds for
pensions for retired and retiring party workers. Remaining
funds would be donated to some charities. Third, a younger
generation of leaders needs to be cultivated and given
positions of responsibility. As the ruling party, the KMT
will also need to increase its vigilance against corruption
and abuses of power by expanding the membership and powers of
its anti-corruption and disciplinary committee.


10. (C) Chan noted that the party is especially concerned
about the possibility of actions and statements by individual
KMT legislators that harm the overall image and interests of
the party. Chan said, for example, legislators can on their
own propose "pork barrel" bills to serve their
constituencies, opening the party to criticism by the DPP and
the media. Legislators, who enjoy immunity, can also make
irresponsible or strident statements that reflect poorly on
the party. Overall, however, Chan suggested, the new
single-member district system introduced in January has made
nomination by the party essential for a candidate's
reelection prospects and has also led to the election of more
"moderate" politicians, a welcome development for Taiwan
politics.

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