US embassy cable - 04TAIPEI3854

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 003854 
 
SIPDIS 
 
STATE PASS AIT/W 
 
E.O. 12958: DECL: 10/10/2013 
TAGS: PREL, PGOV, TW 
SUBJECT: CHEN: OVERSEAS OFFICES, SOE'S TO BE CALLED 
"TAIWAN" BY 2006 
 
Classified By: AIT Director Douglas Paal, Reason: 1.4 (B/D) 
 
1. (C) Summary: President Chen Shui-bian pledged to change 
the name of Taiwan's overseas offices and State Owned 
Enterprises from "China" to "Taiwan" by 2006 during a 
December 5 press conference at Democratic Progressive Party 
(DPP) headquarters.  In the same speech, Chen reiterated his 
intention to abide by his 2000 and 2004 inaugural commitments 
regarding constitutional reform.  He stated that Taiwan needs 
a constitutional reform plan that will improve governance and 
meet Taiwan's current needs rather than a "debate over 
ideology or verbal slogans."  Chen's remarks came just hours 
before the start of a large "name rectification" (zhengming) 
rally organized by supporters of former President Lee 
Teng-hui.  Chen's aides say the president's December 5 
remarks were meant to defend the DPP's left flank from Lee's 
Taiwan Solidarity Union (TSU) in a way that would not be 
perceived as provocative by Washington or Beijing. 
Nevertheless, local media widely portrayed Chen's 
announcement as endorsing Lee's call to "Taiwanize" official 
institutions.  End Summary. 
 
Changing the Name 
----------------- 
 
2. (C) President Chen Shui-bian announced on December 5 that 
Taiwan would change the name of its overseas offices, 
government agencies, and State-Owned Enterprises (SOEs) from 
"China" and "Taipei" to "Taiwan" by 2006.  Chen told 
reporters at a DPP press conference that the purpose of the 
change was to avoid "confusion" abroad between "PRC" and 
"ROC" institutions.  Chen emphasized, however, that he would 
not change the legal title of the country.  Chen stated that 
"our national title, the Republic of China, not only reflects 
historical realities, it also represents the greatest 
consensus within Taiwan society over our national identity." 
Chen added that all of his previous pledges, including those 
made during his May 20 Inaugural Address and October 10 
National Day speech, would remain in force throughout his 
term of office.  Defending the limits he has placed on future 
constitutional revisions, Chen stated that Taiwan needs a 
constitutional reform plan that will improve governance and 
meet Taiwan's current needs rather than a "debate over 
ideology or verbal slogans." 
 
3. (C) Following the president's speech, the Premier and 
spokesmen for the DPP and MOFA clarified that the initiative 
to change the name of Taiwan's overseas missions only 
referred to offices in countries that do not recognize the 
"Republic of China."  The MOFA Spokesman noted that changing 
the title of offices would only be done if approval was 
secured from host governments.  DPP Deputy Secretary General 
Lee Ying-yuan told the Director that Chen himself echoed this 
clarification during a campaign rally later in the evening. 
Regarding SOEs, Executive Yuan (EY) 
Minister-without-Portfolio Hsu Chih-hsiung announced that the 
EY has already formulated a plan to change the English titles 
for a number of state entities, including the "Central Bank 
of China," "China Shipbuilding," and "China Steel." 
 
Squeezed From Both Sides 
------------------------ 
 
4. (C) The president's press conference came hours before the 
Taiwan Solidarity Union (TSU) and Pan-Blue alliance held 
separate rallies in Taipei City (Note: The media and 
organizers for both camps claimed turnout in the hundreds of 
thousands, but AIT on-site observers estimated attendance at 
no more than 20,000 for the TSU and 10,000 for the Pan-Blue 
rally).  Presidential Office Deputy Secretary General James 
Huang told the Director that the press conference was 
organized after the DPP canceled its planned December 4 
"Protect Taiwan" rally due to a passing typhoon.  Huang said 
the DPP did not want to allow the other parties to monopolize 
the headlines in the final weekend of campaigning. 
 
5. (C) DPP Secretary General Chang Chun-hsiung told the 
Director that Chen's December 5 comments were carefully 
calibrated in advance.  Chang said that the DPP feared that 
if it remained silent, the December 5 name change rally would 
allow the TSU to dominate the Pan-Green agenda and thus steal 
votes from the DPP.  At the same time, Chang asserted that 
officials present at the meeting urged the president to 
consider possible USG reaction to any statement regarding a 
name change.  In the end, Chang stated that Chen decided on 
the approach of announcing the name change for overseas 
offices and SOEs to appeal to the Pan-Green base while 
reiterating his continued commitment to the "five no's" and 
other pledges to reassure the United States.  Chang added 
that the name change initiative for foreign missions is not a 
new policy, noting that Taipei requested such a change from 
Japan two years ago.  (Note: Taiwan has also sought to use 
"Taiwan" in the name for the community center in Gaithersburg 
built by TECRO Washington.  End Note.) 
 
6. (C) Chang said that the president recognized that this 
approach would cost the DPP seats to the TSU in the December 
11 legislative election, but decided to proceed anyway out of 
consideration for USG concerns.  Chang claimed that a DPP 
poll done Sunday night showed the DPP losing two seats to the 
TSU as a result of the TSU's December 5 rally, with no 
 
SIPDIS 
offsetting gain for the DPP among centrist voters.  Chang 
attributed the lack of movement among centrists to the 
general lack of interest among non-partisan voters in the 
December 11 election campaign.  Chang said he was surprised 
at the president's willingness to intentionally sacrifice 
party interests for the sake of foreign policy.  He also 
praised the president for consulting with his advisors in 
advance of his December 5 announcement.  "During the last 
election campaign, he never told anyone about his plans to 
announce things like a referendum on a new constitution," 
Chang continued, "he even refused to tell (National Security 
Council Secretary General) Chiou I-jen." 
 
Comment: Domestic Driven Focus 
------------------------------ 
 
7. (C) We do not doubt the DPP's claims that Chen's December 
5 announcement was driven by domestic political 
considerations.  This explanation, however, makes it no less 
troubling.  This latest episode is yet another reminder of 
the eroding political will in Taiwan to maintain the 
cross-Strait status quo.  There is one other disturbing 
aspect to the weekend's developments.  Previous rhetorical 
provocations have been explained away as President Chen 
extemporizing.  In this case it is clear that both the DPP 
and the EY have been planning this name change proposal for 
some time. 
 
8. (C) While the structure of Legislative Yuan (LY) elections 
generally encourages both camps to move to the extremes, the 
situation may not necessarily improve after December 11.  It 
is increasingly clear that the DPP sees Lee and his TSU as 
the real potent opposition force and is content to ignore the 
self-marginalized Pan-Blue alliance.  An election that 
results in the DPP reliant on the TSU for a majority, or 
competing with the TSU for the hearts and votes of Pan-Green 
supporters in future elections, may give Lee and his 
associates even greater influence over the direction and 
content of policy.  This would leave the USG, as it has been 
for more than a year, as the only effective force to balance 
further moves away from the status quo. 
PAAL