MOFA ISSUE-BY-ISSUE REVIEW OF BILATERAL TIES

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 000539

SIPDIS

E.O. 12958: DECL: 05/05/2019
TAGS: PREL ETRD ECON CVIS TW
SUBJECT: MOFA ISSUE-BY-ISSUE REVIEW OF BILATERAL TIES

Classified By: AIT Director Stephen M. Young,
Reasons 1.4(b/d)

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


1. (C) MOFA North American Affairs Division Deputy Director
General Michael Hsu covered the range of bilateral issues
during an April 30 meeting with visiting EAP/TC Deputy
Director Deena Parker. MOFA wants to improve the security of
Taiwan's passport, Hsu said, but worries that the new
procedures will be unpopular and will raise expectations that
Taiwan will be granted U.S. visa waiver status. Taiwan is
ready to engage on an extradition agreement, Hsu said, and
asked about the status and timetable of U.S. deliberations.
Taiwan understands a U.S.-Taiwan FTA is not likely in the
short run, but wants to reenergize the TIFA and other aspects
of our commercial relationship. Hsu predicted progress on
opening the market to U.S. (and Canadian) beef "in a few
weeks." Taiwan hopes U.S. cabinet-level visits will resume.
MOFA is waiting for the U.S. response to the proposal to hold
MOFA-led pol/mil talks. End Summary.


2. (C) MOFA Deputy Director for North American Affairs
Michael Hsu met with visiting EAP/TC Deputy Director Deena
Parker April 30 in a cordial and wide-ranging review of the
U.S.-Taiwan relationship. Hsu began the meeting by thanking
the United States for its help over the past years in pushing
to expand Taiwan's access to the WHO and other international
organizations. In that vein, Taiwan appreciated the State
Department spokesman's April 29 statement welcoming the
announcement that Taiwan will participate in the May 18-27
WHA session as an observer.


3. (C) Turning to what he called the "low politics" of the
relationship, Hsu then went through a lengthy list of issues
between the United States and Taiwan, with the issues
identified by President Ma - extradition, a free trade
agreement, and visa waiver - at the very top. This cable
covers the most significant issues discussed.

Trade: Progress on Beef "in Weeks"
--------------

4. (C) President Ma understands that the timing may not be
right to discuss a U.S.-Taiwan free trade agreement, Hsu
said, but Taiwan hopes that the bilateral commercial,
investment and economic relationship can be reinvigorated.
Specifically, he said, Taiwan would like to resume the TIFA
and the discussions of specific agreements under that
framework. Market access for U.S. beef has been a stumbling
block, he admitted, but said he expected to see progress
toward an opening "in a few weeks." Hsu noted that Taiwan
would move to open the market to Canadian beef products at
the same time. Parker thanked Hsu for the encouraging news
and agreed that resolving concerns about access by U.S.
agricultural products would be important for the overall
trade and investment relationship.

Tighter Passport Rules will Raise VWP Expectations
-------------- --------------

5. (C) MOFA realizes that there are legitimate security
concerns about how Taiwan issues passports, particularly to
children between the ages of 8 and 14, Hsu said, and
understands that this could pose an obstacle to Taiwan's
admission to the visa waiver program. The Ministry is
looking at fixes, but is concerned that implementing what
will be unpopular new regulations will raise public
expectations that Taiwan will be admitted in the program in
short order. Will fixing its passport system, he asked, put
Taiwan on track to visa waiver?


6. (C) Parker clarified that U.S. concerns about the security
of Taiwan travel documents extend beyond just the procedures
for issuing to children. Currently, she said, no one is
required to appear personally to apply for a Taiwan passport.
That said, she emphasized that fixing this glaring problem
was only one of a number of considerations that would go into
a possible future consideration of Taiwan's candidacy. At
this point, she emphasized, the United States is focused on
integrating those countries in the pipeline for visa waiver
and not on adding new aspirants to the list.

Extradition
--------------

7. (C) Hsu asked about the status and timing of U.S. internal
deliberations on a possible U.S.-Taiwan extradition
agreement. State is working with other agencies to assess

TAIPEI 00000539 002 OF 002


the legal and other implications of pursuing an agreement,
Parker said, but underscored that it is difficult to predict
how long this review will take or what its outcome will be.

Resuming Cabinet-level Visits
--------------

8. (C) In the past, Hsu noted, U.S. cabinet-level officials
regularly visited Taiwan in connection with a U.S.-Taiwan
Business Council-sponsored conference held in Taipei every
two years. For reasons that had nothing to do with policy
(i.e., the Business Council stopped holding the conferences),
the last of these visits took place in 2000. Taiwan hopes
that an appropriate venue can be found to resume these very
useful exchanges.

Pol/Mil Dialogue
--------------

9. (C) Hsu asked about the status of Taiwan's proposal to
hold MOFA-led pol/mil talks in Washington later this year.
While the original idea was to hold the meeting in May, MOFA
understands that this timing poses problems for the United
States. Washington is still reviewing this idea, Parker
said, suggesting that, if approved, mid- to late-summer would
likely be the earliest such a meeting could take place.


10. (C) This cable has been cleared by EAP/TC Deputy Director
Parker.
YOUNG