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

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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

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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