PRESIDENT MA ON CROSS-STRAIT TIES AND U.S.

C O N F I D E N T I A L SECTION 01 OF 03 TAIPEI 000254

SIPDIS

STATE PASS USDA FOR FAS/OSTA WETZEL, HAMILTON, SHNITZLER;
FAS/OCRA RADLER, BEILLARD; USTR FOR ALTBACH AND STRATFORD;
AND FAS/OFSO WAINIO.

E.O. 12958: DECL: 03/06/2019
TAGS: CH EAGR ECON ETRD MARR PREL TW WHO
SUBJECT: PRESIDENT MA ON CROSS-STRAIT TIES AND U.S.
RELATIONS

REF: A. STATE 16693

B. BEIJING 580

C. TAIPEI 241

Classified By: The Director for reasons 1.4(B/d)

Summary
--------------


1. (C). Taiwan President Ma Ying-jeou discussed bilateral
relations, cross-Strait ties and Taiwan's domestic situation
during a cordial one-hour meeting March 6. The President
expressed confidence with the pace and direction of relations
with China, noting that U.S. support for the process, in the
form of public statements as well as security assistance, was
essential for its success. The Director underscored the
Obama Administration's commitment to continued security
cooperation under the Taiwan Relations Act (TRA). On trade
relations, the Director emphasized the need to swiftly
conclude the risk assessment process and re-open Taiwan's
market to the full range of U.S. beef imports. Ma reiterated
his support for a Free Trade Agreement, Taiwan admission to
the visa waiver program and a bilateral extradition
agreement, while acknowledging that the first two are
longer-term goals. End Summary.

U.S.-Taiwan Security Relations
--------------


2. (C) A visibly relaxed Taiwan President Ma Ying-jeou
discussed his efforts to improve cross-Strait relations,
advance ties with the United States and reconcile domestic
political differences during a cordial, hour-long March 6
meeting with the Director. The Director began the meeting by
presenting the Secretary,s verbal reply to President Ma,s
letter of congratulations on her appointment (ref A). Ma
emphasized that many of the incoming Obama administration,s
key officials were well and favorably known on Taiwan.


3. (C) Noting that he recently returned from consultations in
Washington, DIR said his interlocutors there were familiar
with Taiwan,s concerns and needs, particularly on security
issues. The U.S. government supports efforts to improve
cross-Strait relations and understands Taiwan,s need to
enter these difficult discussions from a position of
confidence. Indications from the Secretary,s recent trip to
Beijing suggested that China, while unable to alter its
rhetorical opposition to weapons sales, understands the Obama
administration's commitment to fulfill our obligations under
the TRA to supply defensive weapons to Taiwan. DIR noted
that there would be an opportunity in the coming months for
Taipei to make the detailed case for the specific weapons
systems it seeks (septel).

Cross-Strait Ties
--------------


4. (C) Conceding that negotiating with the PRC was
challenging, Ma said he nonetheless remained optimistic about
the prospects for continuing cross-Strait rapprochement.
Beijing is largely holding to the informal diplomatic truce
Ma called, including by rebuffing requests from several of
Taiwan,s diplomatic allies to recognize the PRC.
International space issues involving UN agencies would be
more difficult, he acknowledged, but Taiwan is prepared to be
flexible. For example, it is clear, Ma said, that Beijing is
nervous about granting Taiwan WHA observer status, fearful
that it will set a precedent for other UN agencies. Taiwan
understands that these agencies are each unique and is
prepared to address participation in them on a case-by-case
basis.


5. (C) Ma expressed optimism that Beijing will deal with him
because China,s leaders know he does not intend to pursue de
jure independence. Beijing was surprised, for example, when
he told a Mexican newspaper August 26, 2008 that cross-Strait
relations were between regions, and not states. Ma
emphasized that he said this not to please Beijing but
because it was simply an accurate reading of the ROC

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constitution. Although the PRC does not like his concept of
&mutual non-recognition,8 the Chinese leadership is content
to tacitly accept it and &one China, different
interpretations,8 set the issue aside and focus on practical
issues. Taiwan appreciates U.S. messages of support, Ma
said, which help him manage both his dealings with China and
with domestic critics. The President noted that, although
the DPP continues to criticize his cross-Strait policy, some
opposition scholars have endorsed his efforts to improve
economic ties.


6. (C) Ma and NSC Secretary General Su Chi said they had seen
news reports of PRC Premier Wen Jiabao,s March 5 NPC speech
(ref B) but had not had time to study it. Although it
appeared to revisit Hu Jintao,s December 31 speech, Su said,
it was hard to offer an assessment of Wen's remarks without
studying them thoroughly. Ma indicated he would not respond
formally to Hu,s speech, but said he might address
individual points it contained at an appropriate time. In
any event, Ma said, China is not currently pressing for a
response.


7. (C) Ma confirmed that Taiwan is looking at holding the
next round of SEF-ARATS talks in late April or early May (ref
C),to give the Legislative Yuan (LY) time to ratify an MOU
on financial supervision before its summer recess. The
government wants to keep the LY involved in cross-Strait
talks to the extent possible, to show respect to the
institution and to secure broad buy-in into the process.

Non-Security Priorities in U.S. Relations
--------------


8. (C) DIR said efforts to fully open Taiwan,s market to all
U.S. beef remain a very high priority in Washington. While
officials, including Agriculture Secretary Vilsack and key
Hill staffers, are enthusiastic about deepening U.S.-Taiwan
economic and commercial ties, there is significant
frustration about the inability to remove beef from the
agenda. Noting Ma,s suggestion in a March 5 speech to the
American Chamber of Commerce that the market might be opened
sometime in the (newly-begun) Chinese Year of the Ox, DIR
stressed the urgency of resolving the issue as quickly as
possible. Taiwan has a plan to communicate the (very slight)
risks involved and open the market. The time has come to
act, he emphasized, before some new, unforeseen and unrelated
domestic issue arises and muddies the water. DIR noted that
he hopes to see Health Minister Yeh next week and would press
for a quick resolution on beef as well as progress on other
U.S. agricultural concerns, including MRLs. Switching to
Chinese, Ma turned to Su Chi, telling him to instruct the
Minister to expedite a planned public announcement of the
government,s plan to open the market and follow-on public
opinion poll.


9. (C) DIR noted that in Washington he also discussed Ma,s
interest in a U.S.-Taiwan FTA, the Visa Waiver Program and a
bilateral extradition agreement. While FTA talks are highly
unlikely in the near future, DIR said, there are a number of
things Taiwan can do now, including making progress on a
cross-Strait Economic Cooperation Framework Agreement (ECFA).
We also hope to revive the TIFA process soon.


10. (C) On visa waiver, Ma agreed that Taiwan needs to
overcome a number of technical obstacles before the island
would even be eligible. Clearly up-to-date with the issue,
Ma acknowledged that Taiwan does not currently meet the
statutory three percent refusal rate. DIR noted that there
were other technical problems wtih Taiwan's case, including
with Taiwan's passport issuance system. There is also a
backlog of priority applicants, and the U.S. is still
digesting the seven countries granted visa waiver last year.
He assured the President, however, that Taiwan,s case would
be judged on its merits, and that the unique status of
U.S.-Taiwan relations would not be a consideration.


11. (C) DIR expressed appreciation for Taiwan,s efforts to
return a criminal fugitive to California schedule to take
place that evening and said senior State Department officials

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were well aware of Taiwan,s interest in an extradition
agreement and the potential benefits of concluding one.

Domestic Politics
--------------


12. (C) Ma was calm about the prospect of DPP opposition to
his efforts to improve relations with China. DPP Chairman
Tsai Ing-wen will criticize, Ma said, but the government will
make sure her party is fully informed and keep moving
forward. Beyond partisan politics, which accounted for a
major part of DPP opposition, Tsai is worried about
sovereignty, dignity and security, he said. To the extent
that none of these are being put at risk, Ma concluded,
opposition would be manageable.

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


13. (C) Ma's public comments March 5 and private remarks
during our meeting indicate he knows American patience over
the beef issue is wearing thin. We are hopeful that he will
move quickly to resolve this matter as he seeks to engage
more broadly with the Obama Administration on trade and other
matters.
YOUNG