VFM HSIA ON CROSS-STRAIT TIES, FTA, VWP,

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 000276 SIPDIS E.O. 12958: DECL: 03/11/2019 TAGS: ETRD PGOV PREL KJUS WHO TW CH SUBJECT: VFM HSIA ON CROSS-STRAIT TIES, FTA, VWP, EXTRADITION, AND BEEF Classified By: AIT Director Stephen M. Young, Reasons: 1.4 (b) and (d) ¶1. (C) Summary. Taiwan appreciates U.S. support, including Secretary Clinton's comments concerning its defense needs, Vice Foreign Minister Hsia told the Director during a March 11 meeting. Hsia expressed optimism about the prospects for obtaining WHA observer status, but admitted that he was not aware of formal discussions with Beijing on the issue. Taiwan understands that there is no short-term prospect for concluding a free trade agreement or joining the visa waiver program, but will continue to take steps to improve its case for both. Taipei hopes to move more quickly on extradition, however. The Director emphasized the need to open Taiwan's market to all U.S. beef, noting that Health Minister Yeh's recent comment that "U.S. beef is safer than smoking" was not helpful. End Summary. Cross-Strait Ties -------------- ¶2. (C) During a March 11 meeting with the Director, VFM Andrew Hsia expressed appreciation for statements in support of Taiwan by Obama administration officials. In particular, Hsia cited the Secretary's comment to the press en route to Asia last month concerning the continued need for security assistance for Taiwan. Hsia agreed that the support of the people was critical for any long-term solution to cross-Strait issues. To this end, Hsia said, Taiwan needs to see tangible results from President Ma's efforts to improve ties with China. Taiwan's near-term goal is to obtain observer status at the World Health Assembly (WHA). Hsia expressed optimism about Taiwan's prospects, but admitted that formal discussions had not yet begun. While NSC Secretary General Su Chi is directly responsible for this issue, Hsia said, MOFA would have to iron out a number of details. Doing so will take time, he emphasized, so it is important that discussions begin as soon as possible. The United States strongly supports Taiwan's efforts to secure meaningful participation in organizations like the WHO, the Director said, and was ready to assist as necessary. While Beijing would object to pressure from "outside parties," Hsia commented, it will be important to remind China that others are watching with interest. ¶3. (C) How an agreement is implemented will also be important, Hsia said. He noted that at the recent UN Committee on the Status of Women meeting in New York, several private citizens of Taiwan were denied access when UN security insisted they present photo IDs issued by a member state. While some of the participants were able to use U.S. drivers licenses to gain entrance, the rest were turned away. Though it is not clear that Beijing was actively involved in this episode, Hsia expressed concern that similar technicalities would complicate Taiwan's participation in other international fora. Free Trade Agreement, Visa Waiver and Extradition Treaty -------------- -------------- ¶4. (C) Hsia conceded that two of the three priorities in U.S. relations cited by President Ma in a recent New York Times interview will be difficult to achieve in the short term. The VFM expressed understanding about the challenge of pursuing a free trade agreement (FTA),but expressed hope that both sides could work on less ambitious agreements to facilitate bilateral trade. Hsia acknowledged that several domestic issues (i.e. high refusal rates and concerns about the security of the Taiwan passport) need to be resolved before Taiwan would meet the minimum threshold for consideration for visa waiver. Nevertheless, he said, Taiwan will work to address these issues to position itself for possible consideration for VWP in the future. Taiwan is realistic, knows it has work to do, and is under no illusion that FTA or VWP will happen anytime soon. Taipei, however, wants to be in a psition to conclude either agreement quickly once the time is right, according to Hsia. ¶5. (C) Law enforcement cooperation under the Mutual Legal TAIPEI 00000276 002 OF 002 Assistance Agreement is encouraging, Hsia said, and would be enhanced by a formal extradition agreement. He assured the Director that Taiwan's justice system, though imperfect, was apolitical. He noted that some prosecutors in the case against former President Chen Shui-bian had been appointed by the previous administration and that they were only following the evidence. Hsia accepted the point that Taiwan needed to make its judicial system more transparent to its own people and the international community to show that it is sound and credible. Beef -------------- ¶7. (C) Hsia agreed that Health Minister Yeh's recent comment that eating U.S. beef is safer than smoking was not helpful, but offered his sense that market opening was a question of "when," not "if." Although not directly involved in the issue, he expressed optimism that it would be solved soon, noting that it is not a complicated issue. The Director emphasized the importance of removing what was becoming a major irritant in the trade relationship as quickly as possible. (NOTE: Minister Yeh explained in a subsequent meeting with the Director on March 12 that his words were taken out of context. Yeh insisted he had noted that eating beef for one's entire lifetime is safer than smoking one cigarette. END NOTE) YOUNG