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

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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

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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."

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