KMT CHAIRMAN WU POH-HSIUNG ON BEIJING VISIT, U.S.

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 000818

SIPDIS

E.O. 12958: DECL: 06/11/2018
TAGS: PREL PGOV MARR CH US TW
SUBJECT: KMT CHAIRMAN WU POH-HSIUNG ON BEIJING VISIT, U.S.
ARMS SALES, PARTY-GOVERNMENT-LEGISLATIVE RELATIONS

Classified By: AIT Acting Director Robert S. Wang,
Reason(s): 1.4 (B/D).


1. (C) Summary: KMT Chairman Wu Poh-hsiung told A/DIR Wang on
June 11 that the current cross-Strait atmosphere is returning
the "China fever" Taiwan experienced ten years ago. In his
private meeting with PRC President Hu Jintao on May 28, Wu
said he had stressed the importance of "security,
international space, and dignity" for the people of Taiwan,
adding that he had made the case for calling a "truce" in
competition for diplomatic allies. Wu pointed out that
diplomatic setbacks could turn public opinion against Beijing
and lead to a resurgence in support for Taiwan independence.
According to Wu, Hu had described the pressures he had been
under from the Foreign Ministry and PLA to be tough on
Taiwan, especially before the presidential election, and even
now. Wu stressed the importance of U.S. support for Taiwan,
including international space and defense. In his opinion,
congressional notifications of arms sales to Taiwan will not
derail the cross-Strait dialogue, and objections by Beijing
will be a formality. Despite some early friction, he said,
the Ma administration and KMT legislative caucus are
gradually learning to work with each other. End Summary.


2. (C) The Acting Director and KMT Chairman Wu Poh-hsiung
discussed cross-Strait developments, U.S.-Taiwan relations,
and domestic Taiwan politics in a meeting at KMT headquarters
on June 11. KMT political adviser Steve Chen also attended
the meeting. Wu observed that the atmosphere in cross-Strait
relations is returning to the "China fever" that was
prevalent in Taiwan ten years ago. This follows eight years
of moving backwards under the DPP government. Wu suggested
the U.S. and Japan should be pleased with the reduction in
tensions. Even supporters of Taiwan independence do not want
war, he added, so the DPP cannot go too far on issues like
promoting a new constitution.

Wu's Private Meeting With PRC President Hu
--------------


3. (C) Wu noted that in his private meeting with PRC
President Hu Jintao in Beijing on May 28, he had stressed the
importance to the Taiwan people of "security, international
space, and dignity." Wu said he had pointed out to Hu that
China has 170-plus diplomatic allies, while Taiwan has only

23. Losing an ally is much more important to Taiwan than
gaining one more ally is to Beijing. The loss of a
diplomatic ally would increase public pressure on the Taiwan
government and increase support for Taiwan independence, Wu
had explained. Hu had told Wu about the pressure he had been
under from the Foreign Ministry and the PLA to be tough on
Taiwan, especially before the presidential election, and even
now with respect to Taiwan's international space question.


4. (C) Wu said he believed Taiwan will be able to make
step-by-step progress on participation in international
organizations, but he added that Beijing is not overly
generous on this issue. The most possible breakthrough will
be on WHO next year, Wu predicted. He also noted that Taiwan
has received a great deal of favorable publicity in China for
its assistance in response to the recent Sichuan earthquake.
The Chinese people have changed their view of Taiwan, and
this has reduced popular pressure to attack Taiwan. Wu added
that the use by both sides of the term "Chinese nation
(zhonghua minzu)" has also contributed to the good
cross-Strait atmosphere.


5. (C) Touching briefly on Straits Exchange Foundation (SEF)
Chairman P.K. Chiang's June 11-14 visit to Beijing, Wu said
that President Hu had assured him that Beijing would sign the
agreement on weekend passenger charter flights and mainland
tourists this coming Friday. wu also indicated that Chiang
would extend an invitation to Association for Relations
Across the Taiwan Strait (ARATS) Chairman Chen Yunlin to
visit Taiwan. Chen's visit would pose a number of problems,
noted Wu: Would Ma meet with him, and if so, in what
capacity? Ma's only current title is president, though (Wu
joked) he could also be called "former Chairman" of the KMT.
The DPP would undoubtedly protest if Ma meets Chen as "Mr."

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rather than "President" Ma. Security, for example, against
egg throwers, is also an issue. On his own future travel to
the PRC, Wu told A/DIR that he will be attending the Olympics
in Beijing, including the opening ceremony.

Don't Worry: U.S. Arms Sales Won't Derail Dialogue
-------------- --------------


6. (C) Cross-Strait relations are improving dramatically
following the KMT's return to power, Wu noted, but continued
progress will depend on strong U.S. support for Taiwan,
including support for Taiwan's international space and close
U.S.-Taiwan cooperation on defense matters. President Ma and
the KMT are committed to funding Taiwan's defense at 3
percent of GDP, he noted, adding that to do otherwise while
trying to get closer to Beijing would be "suicidal." Noting
that some in Washington have expressed concern that U.S.
weapons sales to Taiwan could adversely affect the budding
cross-Strait rapprochement, A/DIR asked Wu what he thought
about the timing of congressional notifications. While
noting that NSC Secretary-General Su Chi would be the one to
answer that question, Wu said he did not believe
congressional notification of well-known, long pending
defensive arms sales would have a negative effect on the
cross-Strait atmosphere. PRC objections would be just a
formality, he predicted. Nonetheless, Steve Chen added, it
might be better to wait until after the August Olympics if
feasible. Wu suggested that Beijing would like to have
advance notice of key events such as arms sales and he said
the KMT could perform such a role.

Ma, KMT Learning To Work Together
--------------


7. (C) Wu acknowledged that relations between the Ma
administration and the KMT legislative caucus have
encountered some difficulties, and both sides are going
through an adjustment period. Wu noted that Ma recently
established a five-member group to facilitate communications
between the Presidential Office, Cabinet, and KMT party
leadership. (Note: Ma chairs the group, which also includes
VP Vincent Siew, Premier Liu Chao-shiuan, Legislative Speaker
Wang Jin-pyng, and Wu). The group meets once a week, Wu
continued, and, although there is no agenda, it has been
helpful in ironing out differences between the government, LY
caucus, and party. Wu took credit for the improvement of
party unity before and after the recent legislative and
presidential elections. To counter those KMT legislators who
are disgruntled that Ma has ignored them after winning the
presidency, Wu said he has reminded them of the debt they owe
to Ma for campaigning on their behalf in the legislative
elections.
WANG