SUBSTANTIVE TRIAL OF FORMER PRESIDENT CHEN

C O N F I D E N T I A L TAIPEI 000352 SIPDIS E.O. 12958: DECL: 03/25/2019 TAGS: PGOV PREL TW CH SUBJECT: SUBSTANTIVE TRIAL OF FORMER PRESIDENT CHEN SHUI-BIAN BEGINS REF: KIM-PARKER 03/26/09 E-MAIL Classified By: The Director for reasons 1.4(b/d). ¶1. (SBU) Summary: Following two months of pretrial hearings, the Taipei District Court opened the substantive portion of former President Chen Shui-bian's trial on March 26. On the first day, the court heard testimony accusing Chen of accepting bribes in connection with the Lungtan land deal, one of several charges, including money laundering, embezzlement, and extortion, against the former president. If convicted on all charges, Chen could potentially face a life sentence. In a statement released on the eve of his trial, Chen reiterated claims that his prosecution was politically motivated and that his rights had been violated. Current predictions are that a verdict may be handed down by mid-April, though either side can appeal twice more before the process concludes. End Summary. First Day of Chen Trial: Lungtan Land Deal -------------- ¶2. (SBU) In the morning session of Chen Shui-bian's trial, presiding judge Tsai Shou-hsun ruled that former first lady Wu Shu-jen's classmate and friend Tsai Mei-li's testimony about alleged kickbacks received in connection with the Lungtan land deal was inadmissible because Tsai's recent diagnosis of cancer could have affected her mental state when she testified before prosecutors. Earlier, Chen's lawyers had demanded the court dismiss the testimonies of all witnesses, claiming they were coerced or coached to make statements unfavorable to Chen and his family. Judge Tsai, however, did allow into evidence testimony by witnesses other than Tsai Mei-li. This afternoon, Chen will have an opportunity to confront Taiwan Cement Chairman Koo Chen-yun, who is alleged to have transferred NTD 400 million (USD 11.8 million) through go-betweens to the former first family as a "commission" for the land deal. Wu has argued that the money was a political donation, not a bribe. Chen Accuses Ma and KMT of Political Purges -------------- ¶3. (SBU) In a statement released by his office at a press conference on Wednesday (ref),Chen argued that the case against him was a coordinated, politically motivated effort by the Ma administration and the KMT intended to placate China and improve cross-Strait ties. Chen acknowledged receiving political contributions (vice bribes or kickbacks), which were transferred overseas by former First Lady Wu Shu-jen, but continued to deny any detailed knowledge of his financial affairs, instead maintaining Wu transferred the funds abroad without his knowledge. He argued that while political contributions were a sensitive issue for all politicians and a flaw that should be corrected, they should not be used as a tool for political attacks. Chen called on the international community and the people of Taiwan to stand up against the developing "neo-authoritarian" pro-China regime. Comment -------------- ¶4. (C) By claiming persecution, Chen hopes to maintain support from the Deep Green base and to shift public attention from corruption to politics. Chen's criticisms of the judicial process have some resonance on the Green side of the political spectrum here. YOUNG