DETENTION OF FORMER PRESIDENT CHEN EXTENDED AGAIN

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 001161

SIPDIS

E.O. 12958: DECL: 09/25/2019
TAGS: PGOV PREL TW CH
SUBJECT: DETENTION OF FORMER PRESIDENT CHEN EXTENDED AGAIN
BY NEW JUDGES

REF: A. TAIPEI 1109

B. TAIPEI 571

C. TAIPEI 1153

Classified By: AIT Acting Deputy Director Dave Rank for reasons 1.4 (b/
d)


1. (C) Summary. The Taiwan High Court judges who will hear
former President Chen Shui-bian's appeal of his guilty
verdict and life sentence for corruption decided on September
24 to extend his detention for three months. Although
opposition Democratic Progressive Party (DPP) leaders have
criticized the decision to keep the party's former standard
bearer behind bars, their willingness to bat for Chen may be
limited as they gear up for critical local elections in
December. The number of Chen supporters appeared to be
declining amid shocking revelations of graft at his trial and
a lawsuit he brought against President Obama that one former
aide described as "the work of a madman." End Summary.

New Judges Pave Way for Second Trial...
--------------


2. (U) The Taiwan High Court on September 24 selected by
random drawing a three-member panel of judges to preside over
the second-round corruption trial of Chen Shui-bian, who
along with his wife was found guilty and sentenced to life in
prison by a lower court on September 11. (Ref A) The new
team included Presiding Judge Teng Chen-chiu and judges Peng
Chin-peng and Pan Tsui-hsueh. Teng and Pan have spent many
years on the appellate bench, while Peng joined the High
Court on September 3.

... And Decide to Keep Chen in Detention
--------------


3. (U) Hours after being selected, the judges heard
arguments from prosecutors, Chen, and his court-appointed
defense lawyers regarding the former president's detention,
which was set to expire September 25. Citing multiple
reasons, the judges decided to extend the detention for three
months. (Note: Except for a short break, Chen has been in
jail since November 12, 2008. He can appeal the latest
decision. End Note.) Although Teng was considered a more
liberal judge who was not quick to place individuals in
detention, legal experts said there was no precedent for
releasing a defendant sentenced to life imprisonment. The
judges also maintained Chen could pose a flight risk, and
they expressed concern about the large sum of money Chen's
family still had overseas. They will now familiarize
themselves with the details of the cases and set a date to
hear the appeal, which may not start for months.

New Indictments in the Mix
--------------


4. (SBU) Prosecutors meanwhile levied new charges against
Chen on September 22, accusing him of misappropriating
$330,000 and embezzling $500,000 from a public fund used for
secret diplomacy. In the latter case, Chen was indicted
along with his former National Security Council Secretary
General Chiou I-jen and former Deputy Foreign Minister
Michael Kau. Chen allegedly pocketed petty cash for
diplomatic trips and gave it to his son to study in the
United States. Chen has denied the charges. The new charges
marked the second time prosecutors had issued new indictments
since corruption investigations on Chen began (ref B). Our
DPP contacts have surmised to PolOff that further charges
could be in the offing.

Media Wonders If Chen's Nuts as He Plans to Sue Obama
-------------- --------------


5. (U) The same day prosecutors publicized the additional
charges, Chen announced plans to sue U.S. President Obama and
U.S. Defense Secretary Gates. Chen was initiating litigation
in the United States, faulting Obama and Gates for failing to
place Taiwan under military occupation. Chen noted that
Chinese World War II leader Chiang Kai-shek commanded the

TAIPEI 00001161 002 OF 002


occupation of Taiwan in 1945 under an order by General
Douglas MacArthur, commander of the Allied Forces in the
Pacific. Chen claimed that Chiang ruled Taiwan on behalf of
the United States, which he said should have established a
military government on the island, and that Taiwan's status
remained unresolved.


6. (C) There appeared to be consensus among many Taiwan
political commentators that Chen's plan to sue President
Obama raised questions about his mental stability. The
opposition Democratic Progressive Party (DPP) issued a
statement expressing disagreement with Chen's views on
Taiwan's status and reiterating the party's view that Taiwan
was an independent sovereign state, whose future could only
be determined by its people. In his popular daily newspaper
column, Chen's former National Security Council Deputy
Secretary-General Antonio Chiang called the remarks crazy.

Legal Experts Disagree on Merit of Extended Detention
-------------- --------------


7. (C) Reaction to the decision to extend Chen's detention,
however, was mixed. Kuomintang Legislator Lu Hsueh-chang
agreed with the judges and noted there was no precedent for
releasing a defendent found guilty on corruption charges and
sentenced to life imprisonment. Other legal experts,
however, disagreed. Former Taipei District Court Judge Wu
Meng-liang said the reasons for detention were unreasonable
and disappointing, while Judicial Reform President Lin
Feng-cheng disagreed with the general practice of detaining
defendants appealing felony convictions. This latest
extension could fuel ongoing debate on Taiwan's detention and
judicial systems (ref C).

Comment: DPP in a Quandry Over Chen
--------------


8. (C) Meanwhile, Chen's remarks and extended detention
could further harden the lines of division within the DPP.
Opposition Legislator Lai Ching-te suggested to PolOff that
the DPP had become essentially two parties: one that
supported Chen and one that did not. Independent pollster
Dai Li-an opined to PolOff that support for Chen within the
DPP was shrinking but noted Chen's supporters remained very
vocal. Dai's polls indicated that 62 percent of respondents
distrusted Chen and 47 percent believed the DPP, hit by the
Chen scandals, hads not demonstrated enough determination to
reform and commit to clean, uncorrupt politics.


9. (C) The pressure on DPP Chair Tsai Ing-wen to keep the
party from further fracturing over the Chen trial is unlikely
to subside. Immediately after Chen was convicted of
corruption on September 11 and again after his detention was
extended on September 24, many within the party, including
some legislators, called for street protests. Others,
however, feared such action would further damage the DPP's
credibility. Our DPP contacts in Hualien County told us Tsai
nixed plans of local supporters to travel to Taipei to stage
a pro-Chen protest on September 19. Tsai will likely
continue to stave off pressure to stage street protests in
favor of focusing on crucial upcoming local elections on
December 5. Some of the races for county magistrates, who are
important political figures in Taiwan, are expected to be
close, which means the DPP can not afford to lose the vote of
Chen supporters, even if their numbers are dwindling.
STANTON