KMT CHAIRMAN WU POH-HSIUNG ON UPCOMING HISTORIC

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 000715 SIPDIS E.O. 12958: DECL: 05/23/2018 TAGS: PGOV PREL CH TW SUBJECT: KMT CHAIRMAN WU POH-HSIUNG ON UPCOMING HISTORIC TRIP TO CHINA REF: TAIPEI 698 Classified By: AIT Acting Director Robert S. Wang, Reason(s): 1.4 (B/D). ¶1. (C) Summary: KMT Chairman Wu Poh-hsiung told the A/DIR on May 22 that he will be departing May 26 for a six-day visit to mainland China at the invitation of PRC President Hu Jintao. Wu emphasized that President Ma Ying-jeou fully supports his visit, the highlight of which will be Wu's meeting with Hu Jintao in Beijing next week. Wu said he plans to discuss the need to resume the SEF-ARATS channel as quickly as possible, to begin weekend charter flights and make arrangements for Chinese tourists to visit Taiwan, and also to discuss Taiwan's "international space." Wu expressed confidence that the Chinese responses will be positive, but suggested Hu himself will need to provide strong and clear instructions to the bureaucracy to make things happen. End Summary. Wu on Historic Trip To China -------------- ¶2. (C) In a meeting at KMT headquarters on May 22, party Chairman Wu Poh-hsiung told the Acting Director that he would be departing for a six day visit to Mainland China on May 26 at the invitation of Chinese President Hu Jintao. He will first "report" to ROC founding father Sun Yat-sen in Nanjing (where Sun's mausoleum is located),and then travel to Beijing where he will meet with President Hu and other Chinese leaders. Afterwards, Wu said he plans to go to Shanghai to thank the Taiwanese community for their support in the recent presidential election. ¶3. (C) Wu stressed that his trip will be an "historic opportunity" to create the "right atmosphere" for progress on cross-Strait relations. The invitation by Hu is an important gesture showing that Beijing wants to improve cross-Strait relations, despite its preoccupation with unrest in Tibet, the Sichuan earthquake devastation, and the summer Olympics. Wu noted he discussed his visit with President Ma Ying-jeou, who has given his full support. (Note: Ma publicly stated his "full support" for Wu's visit at a press conference on May 22. End note.) Wu said he will raise the need to resume talks between the Straits Exchange Foundation (SEF) and Association for Relations Across the Taiwan Strait (ARATS) as quickly as possible, to launch weekend charter flights, and to make arrangements for Chinese tourists to visit Taiwan. He expects both sides to issue a joint statement, but emphasized they would not sign any formal agreements since as party chairman Wu does not represent the government. Lai Shin-yuan Appointment -------------- ¶4. (C) Wu acknowledged that the appointment of former Taiwan Solidarity Union (TSU) legislator Lai Shin-yuan as Chairwoman of the Mainland Affairs Council (MAC) had raised some concerns within the Beijing leadership, but he assured A/DIR that Lai's appointment was "no longer an obstacle" to beginning talks. Wu said he had spoken to his counterparts in Beijing, and they now understand that Lai "had adopted Ma's cross-Strait policies and will not be a decision-maker," and that her appointment was a "symbolic" gesture to pro-independence voters that Ma would seek "balance" in his approach to the mainland. Looking for Positive Response -------------- ¶5. (C) Wu expressed confidence that the Chinese response to his proposals will be positive, but he suggested that President Hu himself will need to provide strong and clear instructions to the bureaucracy to make things happen. However, China has its share of "hawks" on Taiwan and so the situation may prove difficult for Hu to fully control. According to Wu, the current generation of Chinese leaders has a better understanding of Taiwan than the generation of former President Jiang Zemin. The next generation, which has TAIPEI 00000715 002 OF 002 more international experience and a broader outlook, could prove even more flexible on cross-Strait issues, he added. ¶6. (C) In party-to-party discussions, the KMT has emphasized the Taiwan people's desire for "dignity," Wu said. Ma and the KMT oppose Taiwan independence, but they nevertheless have a strong "Taiwan consciousness" and will strive to maintain Taiwan's interests. Beijing's strong-arm tactics to isolate Taiwan internationally generates ill-will toward China. Poaching diplomatic partners or blocking Taiwan's participation in international organizations is counterproductive and only helps to build electoral support for the DPP. Wu asserted that Hu understands this and has already told lower-level officials to ease up on the suppression of Taiwan's international space. ¶7. (C) The party-to-party channel will be used to discuss a wide range of cross-Strait issues, while the SEF-ARATS dialogue will be utilized to negotiate and implement official policies, Wu explained. Many other cross-Strait channels could co-exist with these two dialogues, including thinktank-to-thinktank and local party-to-party talks, but those involved would not represent official policies. Noting that KMT Honorary Chairman Lien Chan remains the chairman of the KMT-sponsored National Policy Foundation, Wu said the KMT leadership will continue to support Lien's efforts in that capacity to expand cross-strait relations. Taiwan-U.S. Relations; F-16s -------------- ¶8. (C) Echoing President Ma's May 20 inaugural address, Wu underscored that the U.S. is Taiwan's indispensable partner on economic and defense matters, and said Taiwan will continue to rely on U.S. cooperation to maintain adequate defenses as it tries to improve relations with the PRC. Taiwan needs more modern F-16 C/D fighter aircraft to augment and replace its aging fleet of A/B models, Wu maintained. He urged the U.S. to allow Taiwan to purchase the newer F-16s sooner rather than later, and, if possible, at a discount, to help Taiwan's defense budget go further. Comment -------------- ¶9. (C) President Ma's inaugural address on May 20 (reftel) and PRC Taiwan Affairs Office Director Chen Yunlin's positive response on May 22 suggest that cross-Strait relations are off to a good start under the new KMT administration. This sets a positive tone for Wu's upcoming visit. We expect both sides will want to see progress on issues such as charter flights, tourism, and resuming the SEF-ARATS dialogue. However, Taiwan's "international space" is a more difficult political issue. WANG