TAIWAN-JAPAN RELATIONS HEAT UP OVER COLLISION NEAR

C O N F I D E N T I A L SECTION 01 OF 04 TAIPEI 000833

SIPDIS

E.O. 12958: DECL: 06/16/2023
TAGS: PGOV PREL JP TW
SUBJECT: TAIWAN-JAPAN RELATIONS HEAT UP OVER COLLISION NEAR
DISPUTED DIAOYUTAI ISLANDS

Classified By: AIT Director Stephen M. Young, Reason(s): 1.4 (B/D).


1. (SBU) At 3:38 a.m. local time on Tuesday, June 10, the
"Lienho," a Taiwanese leisure fishing boat carrying 13
tourist passengers and three crew, sank after colliding with
a Japan Coast Guard vessel during a chase near the disputed
Diaoyutai (Senkaku) Islands in the East China Sea. Taiwanese
commercial fishing boats are often chased by Japanese patrols
in the waters surrounding Diaoyutai, but collisions are rare.
China, Japan, and Taiwan all claim the uninhabited islands
as their sovereign territory, but Japan actually controls the
islands, around which it asserts an "exclusion zone" of 12
nautical miles. The waters surrounding the Diaoyutai chain
are widely believed to contain rich reserves of oil and
natural gas.


2. (SBU) According to June 11 reports from Taiwan's Central
News Agency (CNA),the Lienho sank six nautical miles to the
south or southwest of the disputed island chain. Japanese
authorities considered the Taiwan boat to be operating in
Japanese territorial waters, beyond the "temporary
enforcement line" of Taiwan's exclusive economic zone.
Taiwan fishermen stated they encountered the Japanese patrol
boat "Koshiki" five nautical miles east of the Diaoyutai
Islands. The fishermen said the patrol boat attempted to
contact them by radio, but the noise of the fishing boat's
engine made it nearly impossible to understand the
transmissions, and the collision occurred shortly thereafter.
The June 11 Asahi Shimbun online reported the Taiwan vessel
fled from the Japanese patrol boat, tacking left and right as
it sought to escape. During the chase, it reported, as the
patrol boat closed in from the right rear of the fishing
boat, the fishing boat suddenly swerved to the right,
slamming into the patrol boat's port (left) bow. As the
Lienho began to sink, the patrol boat rescued all sixteen
aboard, and transported them to Ishigaki, an island in
Japan's Okinawan chain, some 200 kilometers south of the
Diaoyutai Islands.


3. (SBU) Taiwan media reported that officials from Taiwan's
foreign ministry visited the passengers and crew shortly
after the collision. The passengers returned to Taiwan on
Wednesday, June 11, and two of the three crew members were
released the following day. The captain of the fishing
vessel, Ho Hung-yi, was detained for further questioning. On
Thursday, June 12, Taiwan Foreign Minister Francisco Ou
summoned Tadashi Ikeda, head of the Taipei Office of the
Japan Interchange Association (JIA),to demand that Japan
release Ho immediately.


4. (SBU) Later on Thursday, June 12, Taiwan's Presidential
Office issued a four point statement in response to the
sinking of the Taiwan fishing vessel:

(Begin Presidential Office Statement)

(1) The Diaoyutai Islands are territory of the Republic of
China. Geographically, the islands are affiliated islets of
Taiwan and are under the jurisdiction of the Dasi Village of
Yilan County's Toucheng Township.

(2) We staunchly maintain our sovereignty over the
Diaoyutais. This position has never changed and will
absolutely not change in the future. The Ministry of Foreign
Affairs is extremely clear on this position and will act in
accordance with this stance.

(3) The ROC vehemently protests the Japanese coast guard
vessel operating in the ROC's territorial waters, bumping
against a Taiwan fishing boat, causing it to sink, and
detaining the captain. The ROC asks that Japan immediately
release the captain and provide compensation. The Ministry
of Foreign Affairs is continuing to negotiate with Japan
based on the aforementioned principles.

(4) We request that the ROC Coast Guard Administration
immediately bolster its manpower and equipment to better
maintain the ROC's sovereignty and defend the nation's right
to fish in territorial waters.

(End Presidential Office Statement)

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KMT Reaction
--------------


5. (SBU) On Friday, June 13, at a question-and-answer session
before Taiwan's Legislative Yuan, Premier Liu Chao-shuan was
asked by a KMT legislator whether Taiwan was prepared for
hostilities with Japan over the Diaoyutai incident. Liu
tried to downplay that possibility, but said he would "not
rule out going to war" with Japan if the dispute could not be
settled amicably.


6. (SBU) Other KMT legislators, including Defense Committee
convener Lin Yu-fang and KMT Caucus Secretary General Shuai
Hua-min, criticized the administration for "weakness" in the
face of Japan's "provocative" act, and urged President Ma to
take a stronger stance. Lin said he would not rule out
demanding that the Ministry of National Defense (MND) send
navy vessels to assert Taiwan's sovereignty over the disputed
islands. Lin also noted that the LY Defense Committee had
already demanded that MND send a warship with legislators on
board to inspect the site of the collision next Wednesday,
June 18. (Note: The MND spokesperson confirmed publicly
today, June 16, that the legislators' inspection tour is
indeed scheduled for Wednesday, June 18. End note.)
Presidential Office Spokesperson Wang Yu-chi dismissed
assertions that President Ma had been weak, and reiterated
that Ma and his administration would continue to defend
Taiwan's sovereignty over the Diaoyutai chain. Wang declined
to answer "hypothetical" questions about whether the Ma
government planned to deploy warships to protect fishing
rights.

Premier Liu Critiques MOFA Handling of Incident
-------------- --


7. (SBU) Later on June 13, Premier Liu told the Taiwan media
he was "very dissatisfied" with the way the collision had
been handled by MOFA. According to June 12 press reports,
on June 11, shortly after the accident had occurred, MOFA
Committee on Japanese Affairs Executive Director Peter Tsai
(Ming-yao) ordered a Taiwan coast guard vessel not to enter
the 12-mile "exclusion zone" around the islands asserted by
Japan. Tsai later told the press he issued the order as a
precaution, in response to a call from JIA in Taipei
demanding the Taiwan vessel delay its entry into the zone in
order to avoid a conflict. However, by the time Tsai issued
the order, the Taiwan coast guard vessel had already arrived
at the scene of the accident and had begun to collect
evidence, under the observation of the Japanese patrol boat
still at the scene. After receiving Tsai's order, the Taiwan
patrol boat withdrew, an act which critics charged
"compromised" Taiwan's territorial claims. Tsai insisted he
did not know the Taiwan patrol boat had already encountered
the Japanese vessel, and that he did not order the Taiwan
boat to retreat. Nonetheless, Tsai tendered his resignation
on June 11 to accept responsibility. Premier Liu told the
media he had asked MOFA to "study" disbanding the Committee
on Japanese Affairs, which was established in 2005 as a task
force to address ongoing disputes.

Japanese Representative Expresses Regret
--------------


8. (SBU) Also on Friday, June 13, Foreign Minister Ou
threatened to recall Taiwan's representative to Japan if
Japanese authorities failed to apologize and continued to
hold the captain of the Taiwan fishing vessel. The captain,
Ho Hung-yi, was released and returned to Taiwan on Friday
evening. Koichi Ito, th Director of the JIA office in
Taipei, paid a visit to Ho at his residence in Taipei County
on June 14, to express "regret" on behalf of Japan's Maritime
Safety Agency (MSA). According to Taiwan press reports, Ito
insisted that the incident had occurred as the Japanese
patrol boat was carrying out its duties, and that the
collision had not been intentional. Ito also reportedly
cited an MSA report which assigned fault to the captains of
both boats, and promised that compensation would be paid in
accordance with Japanese law.

Taiwan Recalls Representative from Tokyo

TAIPEI 00000833 003 OF 004


--------------


9. (SBU) The same day, June 14, FM Ou deemed the MSA report
"unacceptable," and announced his decision to recall Taiwan's
representative to Japan, Koh Se-kai, to learn more about
Koh's negotiations with the Japanese government. Ou also
announced the Committee on Japanese Affairs would be
disbanded, and that MOFA's long-dormant Diaoyutai Affairs
Office would be reactivated. Koh returned to Taipei on
Sunday, June 15. At a press conference, Koh, who was
appointed by former President Chen Shui-bian and has worked
in Japan for many years, argued that JIA Director Ito's
expression of regret to Ho Hung-yi could be viewed as an
apology, and urged Taiwan and Japan to find a way to solve
the problem through diplomatic means. FM Ou acknowledged
that Japan had demonstrated its "goodwill" following the
incident, and agreed with Koh that the two sides should seek
a negotiated agreement to the Diaoyutai dispute, but
continued to call for a clear apology from the Japanese.


10. (SBU) DPP legislative caucus whip Lai Ching-te accused
MOFA of trying to make Koh a scapegoat for the Ma
administration's mishandling of the Diaoyutai incident, in
order to justify replacing Koh, a Chen appointee, with
someone of Ma's choosing. A government spokeswoman insisted
on June 15 that Koh had been recalled to help the government
in its future negotiations with Japan, and that Koh was not
going to be replaced because of the incident.

U.S. Won't Get Involved
--------------


11. (SBU) In response to reporters' questions on June 15, AIT
Director Young stated the U.S. would not become involved in
the dispute between Taiwan and Japan because it was not
necessary. DIR Young expressed regret that people had been
injured in the accident, but added that he was confident that
Taiwan and Japan could resolve the dispute peacefully.

A Matter of Leadership?
--------------


12. (C) President Ma, who has maintained low visibility
through the Diaoyutai incident and aftermath, has begun to
come in for some criticism for not exerting leadership.
AIT/K reports that Ma is currently on the second day of his
southern Taiwan visit to express appreciation for support he
received there in his presidential election. JIA Director
General Koichi Itoh told AIT today, June 16, that JIA has
been frustrated in its efforts to engage the Ma government to
try to calm relations between Japan and Taiwan. Each
official, he said, had "passed the buck": NSC
Secretary-General Su Chi told JIA that he is just an advisor
to the president and JIA should talk with the Foreign
Minister; the Foreign Minister indicated he is under heavy
political pressure to stand up to Japan; and KMT local
political leaders and legislators -- he pointed to Taipei
County Magistrate Chou Hsi-wei and legislator Lee Ching-hua
-- were unresponsive to JIA efforts to discuss the situation
and have continued their public criticisms of Japan. JIA,
Koichi concluded, is frustrated in its efforts to engage
Taiwan authorities and would appreciate assistance from any
quarter in urging Taiwan leaders to calm down the situation.


Comment
--------------


13. (C) Ma and the KMT both approach the Diaoyutai issue
burdened by history. Ma wrote his doctoral thesis in favor
of Taiwan's claim to the islands, once proclaiming he would
be willing to go to war with Japan to defend it. The KMT
fought bitterly against the Japanese for control of the
mainland during World War II, and many deep-Blues still blame
Japan for the KMT's loss to Mao's communists. It seems that
Ma would have liked to have settled this most recent dispute
quietly, but his own words and LY pressure generated by the
KMT's historical animosity toward Japan complicated the
situation. Ma has thus far refrained from speaking publicly
on the crisis, preferring instead to let Premier Liu and FM
Ou take the lead. If Liu and Ou can't solve the matter

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themselves, Ma may have to get involved shortly. The next
crisis point will occur if and when the KMT legislators make
their voyage to the islands on Wednesday. This could be a
key test of Ma's leadership.
YOUNG