US embassy cable - 04TAIPEI3768

UNCLAS TAIPEI 003768 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EAP/RSP/TC, EB/TPP/BTA, STATE PASS AIT/W AND 
USTR, USTR FOR KI AND FREEMAN 
 
E.O. 12958: N/A 
TAGS: ECON, ETRD, TW 
SUBJECT: TAIWAN TIFA DEMARCHE DELIVERED 
 
REF: STATE 248966 
 
1.  (SBU)  Summary:  AIT/T delivered reftel demarche on TIFA 
talks to Ministry of Economic Affairs Vice Minister Chen on 
November 24.  Chen was aware of the content of the demarche 
and understood the need to avoid characterizing the talks as 
discussions on an FTA.  Chen recognized the U.S. desire for 
deliverables during the talks and noted that Taiwan would 
like to be shifted from the Priority Watch List to the Watch 
List under Special 301.  MOEA issued a press release 
announcing the talks late on November 23 and made no mention 
of FTA in its release.  One news article included FTA in its 
reporting on the release while the rest of the newspapers 
echoed the contents of the release.  End summary, 
 
2.  (SBU) AIT/T Econ Chief delivered reftel demarche to 
Ministry of Economic Affairs Vice Minister Steve Chen 
November 24.  Based on previous discussions with AIT/T and 
reports from TECRO Washington, Chen was fully aware of the 
upcoming TIFA talks and was anticipating making an 
announcement during the week of November 22-26.  Given USTR's 
decision not to issue an announcement before the November 
29-30 meeting, Chen volunteered that he would hold off as 
long as possible before making any announcement in Taipei. 
 
3.  Chen said that he understood U.S. concerns that the 
meeting not be characterized as an FTA meeting.  He said that 
he would tell all of his colleagues not to make any mention 
of FTA in conjunction with the TIFA talks.  Regarding the 
need for Taiwan to come prepared with deliverables, Chen said 
that he understood U.S. concerns on resolving outstanding 
issues and also noted that Taiwan would like to gain some 
deliverables.  In particular, he cited a desire for Taiwan to 
move from the Priority Watch List under Special 301 to the 
Watch List. 
 
4.  (SBU) Due to concerns that the news would leak out 
shortly, late in the day on Wednesday, November 24, MOEA 
issued a press release announcing that trade talks were 
resuming under the 1994 Trade and Investment Framework 
Agreement and would be held in Washington November 29-30. 
The statement made no mention of FTA.  Chinese and English 
language newspapers carried the press release on November 25. 
 All but one of the reporting articles did so with no mention 
of FTA.  One newspaper, the Chinese language Liberty Times 
referred to TIFA as an important stepping stone to FTA talks. 
 We believe that the FTA reference was made by the newspaper 
and not by Taiwan officials. 
PAAL