Identifier
Created
Classification
Origin
09TAIPEI737
2009-06-22 02:19:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
American Institute Taiwan, Taipei
Cable title:
Penghu in Lead to Open Taiwan's First Casino
how-toVZCZCXRO5268 PP RUEHCN RUEHGH RUEHVC DE RUEHIN #0737/01 1730219 ZNR UUUUU ZZH P 220219Z JUN 09 FM AIT TAIPEI TO RUEHC/SECSTATE WASHDC PRIORITY 1791 INFO RUEHOO/CHINA POSTS COLLECTIVE RUEHBK/AMEMBASSY BANGKOK 4643 RUEHBY/AMEMBASSY CANBERRA 5239 RUEHHI/AMEMBASSY HANOI 3801 RUEHJA/AMEMBASSY JAKARTA 4506 RUEHKL/AMEMBASSY KUALA LUMPUR 4123 RUEHML/AMEMBASSY MANILA 0815 RUEHPF/AMEMBASSY PHNOM PENH 0776 RUEHGO/AMEMBASSY RANGOON 0567 RUEHUL/AMEMBASSY SEOUL 0201 RUEHGP/AMEMBASSY SINGAPORE 7647 RUEHKO/AMEMBASSY TOKYO 0736 RUEHVN/AMEMBASSY VIENTIANE 0213 RUEHWL/AMEMBASSY WELLINGTON 0008 RUEHCHI/AMCONSUL CHIANG MAI 0744 RUEHHM/AMCONSUL HO CHI MINH CITY 0607 RUEHJA/AMCONSUL SURABAYA 0121 RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHINGTON DC
UNCLAS SECTION 01 OF 02 TAIPEI 000737
STATE FOR EAP/TC
STATE PASS USTR FOR STRATFORD AND ALTBACH
COMMERCE FOR 4431/ITA/MAC/AP/OPB/TAIWAN
TREASURY FOR OASIA/MPISA AND CWINSHIP
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON ETRD PGOV TW
SUBJECT: Penghu in Lead to Open Taiwan's First Casino
Reference: Taipei 44
TAIPEI 00000737 001.2 OF 002
UNCLAS SECTION 01 OF 02 TAIPEI 000737
STATE FOR EAP/TC
STATE PASS USTR FOR STRATFORD AND ALTBACH
COMMERCE FOR 4431/ITA/MAC/AP/OPB/TAIWAN
TREASURY FOR OASIA/MPISA AND CWINSHIP
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON ETRD PGOV TW
SUBJECT: Penghu in Lead to Open Taiwan's First Casino
Reference: Taipei 44
TAIPEI 00000737 001.2 OF 002
1. (SBU) Summary: Penghu County recently submitted an application to
the Executive Yuan (EY) to establish a casino on the island, and
will hold a legally-required referendum on the issue in August. The
Ministry of Transportation and Communication (MOTC) will soon
establish an interagency casino committee that will, in August,
begin drafting casino-related laws and implementing regulations. End
summary.
Background
--------------
2. (SBU) On 12 January, the Legislative Yuan (LY) passed amendments
to Taiwan's Offshore Islands Development Act to allow casinos on
islands such as Penghu, Kinmen, Matsu, or Orchid Island (reftel).
The amended Act requires casinos to be located within international
resorts, which also must include an international hotel and other
tourism and conference facilities. In order to open a casino, the
county or city in which the casino would be located must first hold
a referendum, and over fifty percent of participating voters must
approve the referendum. To avoid a monopoly, the authorities will
likely issue two casino licenses, both of which will probably be
located on the same offshore island.
3. (SBU) On May 29, the Penghu County Magistrate's office submitted
an application to the EY to establish a casino on the island.
Penghu Tourism Bureau Director Hong Dong-lin recently told AIT/K
Chief that Penghu plans to hold the required referendum on the issue
in August.
Recent Developments
--------------
4. (SBU) On June 15, Wang Chih-hui, Chief of Sectoral Planning at
the Council for Economic Planning and Development (CEPD),told
econoff the EY has assigned the Ministry of Transportation and
Communication (MOTC) with drafting implementing regulations and
statutes related to casino operation. The implementing regulations,
which will govern the size, location, and other aspects of possible
casinos, will not need legislative approval. The statutes, however,
which regulate casino operations and management, will need LY
approval.
5. (SBU) According to Wang, the MOTC plans to quickly establish a
Casino Consultative Committee (CCC) comprising experts from the
MOTC, the Ministry of the Interior (MOI),the Ministry of Economic
Affairs (MOEA),the Financial Services Committee (FSC) and the
Council of Labor Affairs (COLA). Wang said that in late June, MOTC
will hire an international consulting firm to produce a report on
Taiwan's "integrated resort" market. The CCC will then use this
report as a basis for drafting the casino-related regulations and
statutes.
Comment
--------------
6. (SBU) According to our sources at CEPD and MOTC, the Taiwan
authorities would like to issue two casino licenses, preferably on
one offshore island, in order to avoid having one casino monopolize
the Taiwan gambling market. Although media polling suggests 70
percent of Kinmen's residents support establishing a casino on
Kinmen, the Kinmen authorities have no plans to hold a referendum on
the issue. Therefore, at this point Penghu looks like the likeliest
site of Taiwan's first--and second--casino. End comment.
TAIPEI 00000737 002.2 OF 002
YOUNG
STATE FOR EAP/TC
STATE PASS USTR FOR STRATFORD AND ALTBACH
COMMERCE FOR 4431/ITA/MAC/AP/OPB/TAIWAN
TREASURY FOR OASIA/MPISA AND CWINSHIP
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON ETRD PGOV TW
SUBJECT: Penghu in Lead to Open Taiwan's First Casino
Reference: Taipei 44
TAIPEI 00000737 001.2 OF 002
1. (SBU) Summary: Penghu County recently submitted an application to
the Executive Yuan (EY) to establish a casino on the island, and
will hold a legally-required referendum on the issue in August. The
Ministry of Transportation and Communication (MOTC) will soon
establish an interagency casino committee that will, in August,
begin drafting casino-related laws and implementing regulations. End
summary.
Background
--------------
2. (SBU) On 12 January, the Legislative Yuan (LY) passed amendments
to Taiwan's Offshore Islands Development Act to allow casinos on
islands such as Penghu, Kinmen, Matsu, or Orchid Island (reftel).
The amended Act requires casinos to be located within international
resorts, which also must include an international hotel and other
tourism and conference facilities. In order to open a casino, the
county or city in which the casino would be located must first hold
a referendum, and over fifty percent of participating voters must
approve the referendum. To avoid a monopoly, the authorities will
likely issue two casino licenses, both of which will probably be
located on the same offshore island.
3. (SBU) On May 29, the Penghu County Magistrate's office submitted
an application to the EY to establish a casino on the island.
Penghu Tourism Bureau Director Hong Dong-lin recently told AIT/K
Chief that Penghu plans to hold the required referendum on the issue
in August.
Recent Developments
--------------
4. (SBU) On June 15, Wang Chih-hui, Chief of Sectoral Planning at
the Council for Economic Planning and Development (CEPD),told
econoff the EY has assigned the Ministry of Transportation and
Communication (MOTC) with drafting implementing regulations and
statutes related to casino operation. The implementing regulations,
which will govern the size, location, and other aspects of possible
casinos, will not need legislative approval. The statutes, however,
which regulate casino operations and management, will need LY
approval.
5. (SBU) According to Wang, the MOTC plans to quickly establish a
Casino Consultative Committee (CCC) comprising experts from the
MOTC, the Ministry of the Interior (MOI),the Ministry of Economic
Affairs (MOEA),the Financial Services Committee (FSC) and the
Council of Labor Affairs (COLA). Wang said that in late June, MOTC
will hire an international consulting firm to produce a report on
Taiwan's "integrated resort" market. The CCC will then use this
report as a basis for drafting the casino-related regulations and
statutes.
Comment
--------------
6. (SBU) According to our sources at CEPD and MOTC, the Taiwan
authorities would like to issue two casino licenses, preferably on
one offshore island, in order to avoid having one casino monopolize
the Taiwan gambling market. Although media polling suggests 70
percent of Kinmen's residents support establishing a casino on
Kinmen, the Kinmen authorities have no plans to hold a referendum on
the issue. Therefore, at this point Penghu looks like the likeliest
site of Taiwan's first--and second--casino. End comment.
TAIPEI 00000737 002.2 OF 002
YOUNG