TAIWAN PRESIDENT MA OFFERS OPTIMISM ON WHA,

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 000003 SIPDIS STATE FOR EAP/TC STATE PASS USTR FOR STRATFORD AND WINELAND, TREASURY FOR OASIA/MPISA, NSC FOR LOI, COMMERCE FOR 4431/ITA/MAC/AP/OPB/TAIWAN, USDA FOR FAS/OCRA RADLER AND BEILLARD E.O. 12958: DECL: 12/31/2018 TAGS: PREL ECON ETRD EAGR PGOV TW CH SUBJECT: TAIWAN PRESIDENT MA OFFERS OPTIMISM ON WHA, "ACTION" ON U.S. BEEF TAIPEI 00000003 001.2 OF 002 Classified By: The Director for reasons 1.4(b/d) ¶1. (C) Summary. Taiwan is likely to make progress on its desire for more meaningful participation in the activities of the WHA and WHO, President Ma Ying-jeou told the Director during a cordial 45-minute meeting December 31. The President promised action in early January on efforts to open fully Taiwan,s market to U.S. beef, by posting on the Health Department website the complete, and very positive, risk assessment. The Director praised Taiwan,s accession to the WTO Government Procurement Agreement (GPA),noting that there had been very little domestic blowback from the decision. Though he promised to keep the door open, Ma expressed doubt that opposition DPP party head Tsai Ing-wen would accept his offer to meet "anywhere, anytime, on any issue.8 End Summary. Cross-Strait Priorities: WHO and Economics -------------- ¶2. (C) Taiwan,s cross-Strait goals for the first half of 2009 are to make further progress on economic and financial issues and secure some kind of participation in the WHA/WHO, President Ma Ying-jeou told the Director during a cordial 45-minute December 31 meeting. On the question of Taiwan,s participation in the WHO, Ma expressed confidence that Taiwan and China could reach a deal before the May 2009 WHA Assembly in Geneva. Ma confirmed that he did not have a special channel with Beijing to discuss WHO and other international space issues. However, a series of visitors, including KMT Chairman Wu Poh-hsiung at the December 20-21 Cross-Strait Forum in Shanghai, have made clear to China the importance Taiwan attaches to the issue. Ma noted Beijing,s hesitancy is driven by concerns that making concessions to a KMT-led Taiwan could hurt China,s interests in the event of a DPP return to power. Likewise, China fears allowing Taiwan access to the WHO would be &the first domino8 ) setting a precedent that undermines PRC claims to be the sole, sovereign representative of China. Finally, Ma acknowledged, Hu Jintao must still deal cautiously with hardliners - on Taiwan, in MFA, the PLA and elsewhere. ; ¶3. (C) Work was progressing on other areas of cross-Strait ties, Ma said, with the goal of concluding deals on an MOU on financial services, fisheries cooperation, combating cross-Strait crime and an air transport arrangement at the next SEF-ARATS meeting. Taiwan,s strategy is to have individual ministries identify issues for resolution, with those ready to be negotiated turned over to the SEF-ARATS channel. Ma went into some detail on the air transport agreement, noting that it would likely be limited to allowing scheduled flights rather than just regular charters. While Taiwan was interested in securing &Fifth Freedom8 rights for Taiwan airlines flying to the PRC but, given strong opposition from Chinese commercial interests, it seemed unlikely the PRC would agree to such a provision and time soon. The Director advised Ma to urge his negotiators to make clear Taiwan,s principled position on the issue, to put the PRC on notice that Taiwan would continue to push for the right in the future. &Action8 on Beef -------------- ¶4. (C) Asked about the timeline for opening Taiwan,s market completely to U.S. beef, Ma promised the Director he would &see action in January.8 Pressed for specifics, he said the Ministry of Health (MOH) would post its risk assessment TAIPEI 00000003 002.2 OF 002 on its website. This endorsement of the assessment,s conclusion that there was "almost no risk" associated with eating U.S. beef was a significant step, Ma argued. At the same time, the MOH would likely renew its call for the United States to take its own case directly to Taiwan consumers. Taiwan would open its market, the President insisted, but it was essential to take the time needed to prepare the public for the decision, to avoid the problems that occurred in Korea. The Director told Ma he will follow up directly after the New Year with Department of Health Minister Yeh Chin-chuang and asked the President to do the same. GPA: Little Opposition, Big Benefit -------------- ¶5. (C) The Director noted that, despite the government,s earlier concerns, Taiwan,s recent decision to join the WTO Government Procurement Agreement (GPA) sparked very little opposition. He congratulated Ma on his courage in taking a step that would lower the cost and raise the quality of a number of infrastructure projects on the island and allow Taiwan companies to compete for projects worldwide. In a recent meeting, the Director said, he urged opposition DPP party head Tsai Ing-wen not to try to score political points by opposing something so clearly in Taiwan,s interests. Ma expressed surprise that the DPP thus far had not been more critical of the agreement. Even local construction companies, usually quick to use &cheap nationalism8 to oppose foreign participation in the construction market, had been relatively quiet. The strongest objections were to the possibility of opening the market to PRC construction firms ) which would be a more difficult issue, the President conceded. Inter-Party Reconciliation -------------- ¶6. (C) The Director emphasized the importance of building bridges between the KMT and DPP, especially given the strains placed on Taiwan society by the financial crisis. The situation in Thailand illustrated what could happen if a significant segment of the population felt excluded from the political process. Noting that he had made the same case to DPP Chairwoman Tsai Ing-wen, the Director called on both sides to work to keep lines of communication open. Ma expressed understanding for the Director,s concerns and for the fact that forces within the DPP made it difficult for Tsai, a &friend and a reasonable woman" to accept Ma,s offer of dialogue &anywhere, anytime, on any issue.8 Nevertheless, he agreed, the KMT has a special responsibility as the stronger party to continue to seek dialogue. SYOUNG