MEDIA REACTION: U.S.-TAIWAN ARMS SALES

UNCLAS AIT TAIPEI 000694 SIPDIS DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - NIDA EMMONS DEPARTMENT PASS AIT/WASHINGTON E.O. 12958: N/A TAGS: OPRC KMDR KPAO TW SUBJECT: MEDIA REACTION: U.S.-TAIWAN ARMS SALES Summary: Taiwan's major Chinese-language dailies focused June 12 news coverage on the Executive Yuan's proposal to revise the Income Tax Law, scrapping the income tax exemption long enjoyed by military servicemen and teachers; on Taiwan Semiconductor Manufacturing Company (TSMC)'s decision to have TSMC Chairman Morris Chang double as the TSMC Chief Executive; and on the World Health Organization's declaration of the H1N1 pandemic. In terms of editorials and commentaries, an editorial in the pro-independence, English-language "Taipei Times" reiterated Taiwan's need for F-16 C/D fighter jets and the importance of U.S. support of Taiwan's need. The editorial also commented on the choice of Kurt Campbell as Assistant Secretary of State for East Asian Affairs as a good sign for Taiwan, because Campbell has a "strong record of support for Taiwan." End summary. "Military Hopes Raised by US Signals" The pro-independence, English-language "Taipei Times" [circulation: 30,000] editorialized (6/12): "Signs from Washington over the last few days must have encouraged those in the military who are clamoring for the purchase of 66 F-16C/D fighter jets from the US. Politicians attending a Taiwan-themed conference this week gave indications there was broad consensus on Capitol Hill to support such a move, and this was followed by more positive news on future arms sales from Kurt Campbell during his Senate confirmation hearing on Wednesday for the post of assistant secretary of state for East Asian affairs. "Let's be blunt: Taiwan's Air Force is in desperate need of some new hardware. ... Compare this situation with China's rapidly modernizing military arsenal and it is clear that the Air Force needs the US to act fast on this matter if it is to maintain any semblance of credibility in air power. "Support from US lawmakers, however, does not necessarily translate to a green light, as any arms sale would also need the approval of the White House, the State Department and the Pentagon. The likelihood of that approval is hard to assess because after five months in office there is no clear indication of the Obama administration's policy direction on Taiwan. "Campbell's confirmation would be a good sign, as he has a strong record of support for Taiwan. But he alone will not be enough, as there are others in the administration, such as special envoy to North Korea Stephen Bosworth, who see Taiwan's democracy as an irritant in the US' relations with China. "There has been talk of a Taiwan policy review and this will surely be the key to determining the scope and scale of any sales, but Chinese relations with the US will also have a bearing on future deals, despite Washington's claims to the contrary. "But the biggest hurdle to sales of more advanced weaponry may be Taiwan itself. Although there has been lots of positive feedback from US officials on the direction of cross-strait relations since the Chinese Nationalist Party (KMT) returned to power in May last year, the rapid pace of the rapprochement must also have raised concerns about the wisdom of selling advanced weaponry to Taipei while noises emanate from both sides of the Taiwan Strait about 'military confidence-building measures.' "President Ma Ying-jeou's policy of downplaying Taiwan's military capacity to curry favor with Beijing and elicit economic favors could also make Taiwan reluctant to pursue such a high-profile deal. ..." WANG