VICE PRESIDENT-ELECT VINCENT SIEW ON BOAO FORUM

C O N F I D E N T I A L SECTION 01 OF 03 TAIPEI 000528 SIPDIS SIPDIS E.O. 12958: DECL: 4/16/2023 TAGS: PGOV TW SUBJECT: VICE PRESIDENT-ELECT VINCENT SIEW ON BOAO FORUM AND HU JINTAO MEETING Classified By: AIT Deputy Director Robert S. Wang, Reason 1.4 (b/d) ¶1. (C) Summary: Taiwan Vice President-elect Vincent Siew (Wan-chang) told the Director on April 15 that his meeting with Chinese President Hu Jintao on April 12 was "successful" and achieved more than had been expected. Siew stressed that President Hu proved "pragmatic and flexible" both ahead of and during their meeting and that the Chinese side properly handled protocol and other arrangements. Siew was encouraged that Hu did not raise the "one-China" or the "1992 consensus" formulations during their meeting and appeared open to the idea that the two sides "set aside their differences" to work on economic issues. Despite the positive signs, Siew noted that Boao was only the first step on a "long road" toward improving cross-Strait relations, one that Taiwan must walk steadily, not quickly. End Summary. ¶2. (C) The Director met with Taiwan Vice President-elect Vincent Siew (Wan-chang) on April 15 to discuss his recent attendance at the Boao Forum in Hainan, China and U.S.-Taiwan economic RELATIONS (septel). Siew said his meeting with Chinese President Hu Jintao on Saturday, April 12 was "successful" and achieved more than had been expected. The Chinese had told him on April 9 to anticipate meeting a leading official at Boao, but did not specify the interlocutor ahead of time. Siew said news reports that Hu would be on an inspection tour of the Hainan Special Economic Zone during the weekend, however, were a strong clue. ¶3. (C) The Director emphasized that Siew's trip has been closely watched back in Washington. The U.S. continues to urge Beijing to engage Taipei in dialogue and to move on the opportunity that the inauguration of the new administration on May 20 presents for improving cross-Strait relations. Siew's attendance at Boao and the meeting with President Hu, the Director added, is an encouraging sign that the two sides can be flexible and are willing to talk. ¶4. (C) Siew stressed that President Hu proved "pragmatic and flexible" both ahead of and during their meeting. Siew was particularly concerned about protocol arrangements for the visit because, if not properly handled, critics back home could claim the exchange had demeaned Taiwan's status and dignity. Siew noted that his first row seating at the forum's plenary session with other heads of state on Saturday was particularly significant since it contrasted to previous years when he had been seated in the second or third row. Significance of Hu Meeting -------------- ¶5. (C) Siew said his meeting with President Hu was especially significant for three reasons. First, Hu spent only Saturday afternoon in Boao and met individually with only two of the forum's guests, the Swedish Prime Minister and Siew himself. Siew said that he was initially concerned that Hu might have scheduled a meeting with Hong Kong SAR Chief Executive Donald Tsang and that this would play negatively back in Taiwan. Second, Hu accepted Siew's suggestion to keep the meeting open and transparent, agreeing to live media coverage of their opening remarks. Third, Siew was encouraged that Hu did not reject or react negatively to his 16-character phrase for developing cross-Strait relations: "Face reality, work toward the future, shelve disputes, and pursue a win-win scenario." ¶6. (C) Siew explained that the first half of the phrase underscored President-elect Ma Ying-jeou's commitment to build upon previous KMT-CPP party-to-party exchanges by repeating the 8-charater phrase used in previous meetings between honorary KMT Chairman Lien Chan and President Hu. Siew commented that this formula implies an "equal status" between the two parties. The emphasis on "putting aside differences" in the second 8-character half was an addition approved by Ma, Siew noted. Although Hu did not address the new formulation directly, Siew was encouraged by the fact that Hu did not raise the "one-China" or the "1992 consensus" formulations during the meeting. Raising the "one-China" issue in this context would have led to a strong backlash in TAIPEI 00000528 002 OF 003 Taiwan that could have complicated future progress and exchanges, Siew added. Other Meetings -------------- ¶7. (C) Siew noted that his interaction with Taiwan Affairs Office Director Chen Yunlin was not significant, limited only to a banquet and welcome dinner hosted the night before the Hu meeting. Substantive issues, including the possibility of Chen's appointment to head the quasi-government body in China for handling cross-Strait exchanges, Association for Relations Across the Strait (ARATS),were not discussed. The cross-Strait economic roundtable and meeting with PRC Minister of Commerce Chen Deming on Sunday, April 13 lasted for 75 minutes and focused on expanding business opportunities and trade. The entire proceedings and discussions were open to the media. Siew said he was surprised and disappointed that a MOC press release stated both sides had expressed a desire to begin a dialogue under the "one-China principle" since neither side had raised that issue during the meeting. Siew said the Chinese side realized its mistake after Siew immediately lodged a complaint and promptly removed the offending language. The Course Ahead -------------- ¶8. (C) Siew told the Director that Boao was only the first step on the road toward improving cross-Strait relations. He emphasized a "long road" remains and Taiwan must walk steadily, not quickly. Reviving Straits Exchange Foundation(SEF)-ARATS exchanges, suspended since then President Lee Teng-hui announced his "two-state theory" in July 1999, is a common goal both sides hold. Siew noted he had not yet met with KMT Vice Chairman Chiang Pin-kung (P.K. Chiang),the SEF Chairman-designate, to inquire about his trip to China planned for late April or early May. Siew added that after the May 20 inauguration the Ma administration will be working hard to meet the July timeframe for opening weekend cross-Strait charter flights and Chinese tourism. President Chen, Critics Get it Wrong -------------- ¶9. (C) Siew said that he expected criticism from President Chen and DPP for undertaking the trip to Boao, but he was upset that the president had intentionally distorted facts and made misrepresentations. Siew explained that, contrary to Chen's claims, Beijing neither initiated nor extended an invitation to attend the forum. Rather, Ma's cross-Strait adviser Su Chi first raised the idea the evening of the March 22 presidential election victory. Su suggested Ma could use the Boao forum as an opportunity to "break the ice" in cross-Strait relations. Ma later approved the plan and supported Siew's attendance at the forum, declining the option of going himself because the focus would become "too political." Siew said his office then submitted a late registration on March 26 and received confirmation two days later that the Boao Forum organizers would accept it. ¶10. (C) Siew said because of the last-minute decision to attend, his office was unable to find airplane seats or hotel accommodations. Boao organizers helped make arrangements, which included booking a 50-seat private charter flight to take the 13 person delegation from Hong Kong to Haikou. Siew said they were charged only the normal fare for the individual tickets rather than the full cost of chartering the plane. Coda: Morris Chang Underscores "Symbolic Importance" -------------- -------------- ¶11. (C) In a separate discussion with the Director on April 14 TSMC founder Morris Chang, a member of Siew's delegation to Boao, said Siew had asked him to attend the gathering just ten days beforehand. Noting he had gone once before, in 2004, Chang said he accompanied Siew to all of his Boao TAIPEI 00000528 003 OF 003 meetings. Chang said the "symbolic importance" of the Hu Jintao event eclipsed the substantive content. Chang believed there was still a great deal of distance to go with China, characterizing the road ahead as "a long and arduous journey." YOUNG