FUTURE MAC CHAIRPERSON LAI SHIN-YUAN: MA'S

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 000595 SIPDIS SIPDIS E.O. 12958: DECL: 04/29/2018 TAGS: PGOV PREL ECON CH TW SUBJECT: FUTURE MAC CHAIRPERSON LAI SHIN-YUAN: MA'S 'WILDCARD?' REF: TAIPEI 00582 Classified By: AIT Director Stephen M. Young, Reason 1.4 (b/d) ¶1. (SBU) Premier-designate Liu Chao-hsuan has named former Taiwan Solidarity Union (TSU) legislator Lai Shin-yuan to head the Mainland Affairs Council (MAC),the most controversial figure among the 18 cabinet appointments that Liu announced April 28 (see reftel for comprehensive list). As MAC chairperson, Lai will be responsible for coordinating cross-Strait policy under the direction of the president. The appointment of Lai, a well-known and outspoken figure from the formerly pro-independence Taiwan Solidarity Union (TSU),raises questions about how well she will be able to work with future Straits Exchange Foundation (SEF) Chairman P.K. Chiang and the other elder KMT officials involved in cross-Strait relations who will now in theory be reporting to her. ¶2. (SBU) With a Ph.D. in Political Sociology from the University of Sussex, Lai brings experience in regional and international economic affairs to the MAC position. She served President Chen Shui-bian between 2000-2004 as a National Security Council Adviser with responsibilities for planning and negotiating Taiwan's entry into the WTO. She is close to former President Lee Teng-hui and a strong supporter of protecting the potentially disadvantaged, including small-scale producers, and consumer rights. As a legislator, she vocally opposed lifting Taiwan,s ban on U.S. beef imports and pressured the Chen administration to file an "anti-dumping" complaint in the WTO against towels made in China. ¶3. (SBU) President-elect Ma Ying-jeou told the media on April 28 he selected Lai with the hope of building greater consensus on cross-Strait policy. Ma explained that Lai would help reassure the five million pro-Green supporters who did not vote for him that their interests will be protected as cross-Strait economic relations are liberalized. Ma emphasized that Lai agrees with his cross-Strait policy, including the "three nos" (no unification, no independence, no war) and "one China, different interpretations," and does not support de jure independence for Taiwan. He added that Lai as a legislator demonstrated professionalism, sincerity, and integrity fighting for the interests of her constituents and Taiwan. TSU, Lee Teng-hui Give Their Blessing... �A; SIPDIS -------------- ¶4. (SBU) Lai will enter the cabinet while retaining her TSU membership, but will refrain from participating in party affairs. TSU Chairman Huang Kun-kui said that in party-to-party negotiations the TSU had approved "marrying off" Lai to serve as MAC chairperson as long as Ma's administration "upholds national dignity, cares for the people's interests, and protects Taiwan's subjectivity." Both Huang and Lai confirmed that TSU "spiritual leader" and former President Lee Teng-hui approved of the appointment in advance. ...But Deep Blues Highly Critical -------------- ¶5. (SBU) Lai's appointment has drawn extensive criticism from the Deep Blue wing of the KMT. Some warn that Lai might bring back the "Lee Teng-hui line" and endanger efforts to open up weekend cross-Strait charter flights by July. Others suggest appointing Lai to oversee the work of elder KMT officials is a personal insult to KMT Honorary Chairman Lien Chan and Vice Chairman P.K. Chiang. Lien Sheng-wen, Lien Chan's son, criticized the selection of Lai as "putting politics above economics." KMT legislator Chiu Yi said naming a "Deep Green" politician who is inflexible and can't negotiate to manage cross-Strait affairs is as offensive as "eating pork in front of Muslims." DPP Predict She will Not Last -------------- TAIPEI 00000595 002 OF 002 ¶6. (C) Lai comes across as an academic and an idealist, and can be charming when she wants to be. But many former colleagues and associates see her as rather stubborn and difficult to work with. Last year, her legislative staff resigned en masse to protest cuts in their pay and benefits. DPP Legislator William Lai told AIT he did not expect Lai to last six months in the position because her strong personality would soon lead to conflict with the KMT old guard. William Lai argued that Ma,s reaching out to Lee Teng-hui was the only reason for Lai Shin-yuan,s appointment. National Cheng-chih University Professor Yen Cheng-sheng suggested that Ma was courting Lee's support to split the pan-Green opposition. Lai's appointment sends a clear message to the KMT old guard that Ma, not they, will be directing future cross-Strait exchanges, Yen stressed. Appendix: Curriculum Vitae -------------- ¶7. (SBU) Present Positions: None. ¶8. (SBU) Previous Positions: TSU at-large legislator, 2005-2008; Senior Consultant, National Security Council, 2000-2004; Executive Officer, Association of Asian Banks, 1999-2000; Advisor, Chinatrust Commercial Bank, Economic Research Institute, 1999-2000; Secretary General, International Chamber of Commerce, Taipei, 1997-2000; Deputy Secretary General, Chinese Taipei Pacific Economic SIPDIS Cooperation Committee, 1996-1999; Secretary General, Pacific Basin Economic Council ROC Chapter, 1996-2000; Director, International Affairs Bureau, Taiwan Institute of Economic Research, 1996-1999; Associate Research Fellow, Taiwan Institute of Economic Research; Associate Professor, Graduate School for Southeast Asian Studies, National Chinan University; Associate Professor, Graduate School for Social Transformation Studies, Shih Hsin University; Associate Professor, Institute of Business Management, Tamkang University; U.K. Special Correspondent, JOURNALIST Magazine, 1990-1996; Researcher, International Labor Organization, Geneva; Project Researcher, United Nations Conference on Trade and Development, 1990-1991; Reporter, China Times, 1979-1981. ¶9. (SBU) Political Affiliation: Taiwan Solidarity Union (TSU). ¶10. (SBU) Education: Ph.D. in Political Sociology, Sussex University, U.K.; M.A. in International Relations and Comparative Politics, London School of Economics, U.K.; B.A., Shih Hsin University, Taiwan. ¶11. (SBU) DPOB: January 1, 1957, Taichung City, Taiwan. Family: single. Language Proficiencies: English, highly proficient (S-4); lived 13 years in the U.K. YOUNG