Identifier
Created
Classification
Origin
09TAIPEI1049
2009-08-28 09:34:00
CONFIDENTIAL
American Institute Taiwan, Taipei
Cable title:  

REVIEW COMMITTEE REJECTS OPPPOSITION'S ECFA

Tags:  PGOV TW 
pdf how-to read a cable
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RHHJJAA/JICPAC HONOLULU HI
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RUEKJCS/SECDEF WASHINGTON DC
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RHHMUNA/USPACOM HONOLULU HI
C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 001049 

SIPDIS

E.O. 12958: DECL: 08/28/2019
TAGS: PGOV TW
SUBJECT: REVIEW COMMITTEE REJECTS OPPPOSITION'S ECFA

REFERENDUM PROPOSAL

Classified By: Acting Director Robert S. Wang,
Reasons: 1.4 (b/d)

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 001049

SIPDIS

E.O. 12958: DECL: 08/28/2019
TAGS: PGOV TW
SUBJECT: REVIEW COMMITTEE REJECTS OPPPOSITION'S ECFA

REFERENDUM PROPOSAL

Classified By: Acting Director Robert S. Wang,
Reasons: 1.4 (b/d)


1. (SBU) Summary: An Executive Yuan committee on August 27
rejected an opposition bid to hold a referendum on a proposed
trade liberalization agreement with China. The proposed
Economic Cooperation Framework Agreement (ECFA) is a key
component of President Ma Ying-jeou's policy to improve
cross-Strait relations. Opposition leaders said they were not
surprised by the ruling against a referendum but,
nonetheless, plan to appeal. At a time when Ma's political
judgment is being questioned because of mishandled typhoon
relief, the opposition will use the rejection to bolster its
argument that Ma is moving too fast to strengthen ties with
mainland China. End summary.

--------------
COMMITTEE SAYS REFERENDUM PROPOSAL FLAWED
--------------


2. (U) The Taiwan Executive Yuan's Referendum Review
Committee rejected the opposition Democratic Progressive
Party (DPP)/Taiwan Solidarity Union (TSU) proposal to hold a
referendum on whether Taiwan should sign an ECFA with China.
The committee, dominated by supporters of the ruling
Kuomintang (KMT),voted 13 to 4 with 2 abstentions against
the referendm proposal. Opponents of the DPP proposal said
it was not properly worded. In fact, the proposed question to
voters was not a referendum on the economic pact itself but
on whether such a referendum should be subsequently held.
Committee Chairman Chau Yung-mau also argued the referendum
proposal was flawed because ECFA is not yet a concrete
policy. He suggested the DPP put forward a new proposal once
ECFA details have been announced. (Note: The DPP collected
more than 100,000 signatures to put the proposed referendum
before the committee, whose approval was needed to put the
question before voters. End note.)

--------------
DPP VOWS TO CONTINUE OPPOSING TRADE PACT
--------------


3. (SBU) At an August 28 news conference, TSU Chairman Huang
Kun-hui and DPP Chairwoman Tsai Ing-wen called the
committee's decision "unacceptable, unconstitutional, and
illegal." The opposition parties vowed to appeal even though
they acknowledged success was unlikely. The DPP warned it
would not rule out any tactics to make its stance clear.


4. (SBU) The opposition has maintained voters have the right
to decide whether there should be an ECFA because of the
profound impact such an agreement would have on their future.
It has warned that an economic pact with China would
undermine Taiwan's sovereignty by making the island overly
reliant on China's economy. The Ma administration, however,
argues the pact is critical to Taiwan's economic well being
and has targeted a signing before 2010, when China's trade
liberalization agreement with ASEAN will take effect. (Note:
Taipei fears it will lose market share in China to ASEAN in
industries such as petrochemicals, textiles and machinery
without its own trade agreement with Beijing. ECFA also is
seen as a necessary condition for Beijing to give a green
light to other governments to negotiate trade deals with
Taiwan. End note.) To assuage fears in Taiwan, the Ma
administration has said ECFA would not lead to additional
agricultural imports from China or to mainland laborers
working on the island. To date, however, little progress has
been made on negotiating actual details of a deal.

--------------
COMMENT
--------------


5. (C) With the Ma administration already facing public ire
over its flawed response to Typhoon Morakot, the DPP
undoubtedly will use the committee's rejection of the
referendum proposal as another example of the KMT being out
of touch with the concerns of ordinary citizens. The DPP had
anticipated its referendum bid would fail but put it forth

TAIPEI 00001049 002 OF 002


anyway to show that many voters wanted a say in the
politically sensitive issue of trade liberalization with
China. Although no one has mentioned a demonstration protest
so far, the referendum rejection will likely be highlighted
in the next opposition rally as another example of how the
KMT administration is being unfair and unresponsive to the
concerns of the Taiwan people.
STANTON