KMT GRANDEE LIEN CHAN CALLS FOR

C O N F I D E N T I A L TAIPEI 001189

SIPDIS

E.O. 12958: DECL: 10/02/2019
TAGS: PREL PGOV MARR APECO TW CH
SUBJECT: KMT GRANDEE LIEN CHAN CALLS FOR
CONFIDENCE-BUILDING MEASURES WITH CHINA

Classified By: Director Bill Stanton. Reasons: 1,4 b/d


1. (C) Summary: Kuomintang (KMT) Honorary Chairman Lien Chan
told the Director he favored gradual implementation of
confidence-building measures to further improve relations
with China. Lien spoke warmly about his relationship with
China's President Hu Jintao, but appeared less enthusiastic
about Taiwan President Ma Ying-jeou, with whom he has had a
longstanding rivalry within the KMT. No decision had been
made on who would represent Taiwan at the upcoming summit of
the Asia-Pacific Economic Cooperation (APEC) forum, Lien
said. End Summary.

EXPLORE CONFIDENCE-BUILDING MEASURES
--------------


2. (C) KMT Honorary Chairman Lien Chan has been a longtime
key player in pushing forward cross-Strait ties. As Chairman
and now Honorary Chairman of the KMT, he has met several
times with Chinese President Hu Jintao (in his capacity as
Chinese Communist Party General Secretary) to discuss
strengthening relations. In their October 2 introductory
call, the Director asked whether Lien was concerned by the
military might that was on display the day before at China's
National Day celebrations. Lien said he was "not
overwhelmingly worried" but said the time had come to explore
confidence-building measures between the two sides. While he
acknowledged there was not yet consensus for such measures,
he referred to local media reports that Deputy Secretary
Steinberg recently had raised the possibility of such steps.
Lien said the measures would have to be employed gradually,
"step by step, piece by piece," and not as a package. His
adviser, Stephen S. F. Chen, suggested that establishing a
hotline between rival commanders on Taiwan's Kinmen island
and the nearby Chinese city of Xiamen would be one possible
initial step.

RETURNING TO APEC?
--------------


3. (C) When asked by the Director if he would again represent
Taiwan at the November 12-14 APEC summit in Singapore, Lien
responded, "we have not decided yet." Lien led the Taiwan
delegation at the Peru summit in November 2008, during which
he met with President Hu of China. He said the issue of this
year's representative was "a little complicated," but did not
elaborate. He joked that he hoped he held the greatest trust
of President Ma, who will decide who represents Taiwan in
November. "That's most important," he added.

LIEN AND MA: NOT BEST BUDDIES
--------------


4. (C) In fact, Lien said nothing during the introductory
call that would counter the popular perception he and Ma, who
will become KMT chairman on October 17, have a testy
relationship. Lien acknowledged the two did not talk on a
regular basis. When the Director initially asked Lien to
evaluate Ma's opening to China, he pointedly referred to him
twice as "Mr. Ma" instead of "President Ma." When he finally
did answer the question much later in the conversation, Lien
suggested that whatever advances Ma had made with
cross-Strait relations had been done based on his advice.
Indeed, throughout the conversation Lien spoke more warmly of
his meetings with Hu than of his relationship with Ma.


5. (C) Lien also provided a cautionary forecast for KMT
prospects in upcoming local elections in December and next
year. "It doesn't seem to me we are making winning teams
everywhere," he said, referring to President Ma's support of
uncorrupt yet untried candidates over time-tested
politicians. "The old ones are not all bad," Lien said. He
predicted the president would "have some headaches" after
taking up the party chairmanship.
STANTON