US embassy cable - 05TAIPEI312

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 000312 
 
SIPDIS 
 
STATE PASS AIT/W 
 
E.O. 12958: DECL: 10/10/2013 
TAGS: PREL, PGOV, TW 
SUBJECT: FRANK HSIEH APPOINTED PREMIER 
 
Classified By: AIT Director Douglas Paal, Reason: 1.4 (B/D) 
 
1. (C) Summary: President Chen Shui-bian announced January 25 
the appointment of Kaohsiung Mayor Frank Hsieh (Changting) to 
head the Executive Yuan (EY).  Chen said that Hsieh's cabinet 
would bring stability to Taiwan's political scene by 
emphasizing cross-partisan consultations.  Hsieh echoed this 
theme, promising to create a "new model" in Taiwan politics. 
At the same press conference, Chen announced the appointment 
of outgoing Premier Yu Shyi-kun as Presidential Office 
Secretary General, a position Yu held prior to the 
 
SIPDIS 
Premiership.  Officials say that Hsieh's new cabinet may not 
be formalized for several more days.  Few major changes are 
expected in the cabinet line-up, particularly among the 
national security agencies.  Hsieh is likely to be a more 
competent manager than his predecessor, but his effectiveness 
may depend on Chen's willingness to give Hsieh real authority 
to run the cabinet.  End Summary. 
 
Premier Hsieh 
------------- 
 
2. (SBU) President Chen Shui-bian announced on January 25 his 
decision to appoint Kaohsiung Mayor Frank Hsieh as the next 
Premier, effective February 1.  Chen praised Hsieh's 
administrative track record and ability to work across 
partisan lines.  Chen said the new cabinet would focus on 
political stability and "consultations" with the opposition 
Pan-Blue alliance.  He also boasted that Hsieh's appointment 
would bring geographic balance to Taiwan politics, which Chen 
claimed would no longer be characterized by "Taipei looking 
down from the heavens at Taiwan." 
 
3. (C) Hsieh focused on similar themes in his acceptance 
speech, pledging to create a "new model" for relations 
between the ruling and opposition camps.  National Security 
Council (NSC) Deputy Secretary General Henry Ke told AIT 
January 25 that there were high expectations over Hsieh's 
ability to work with the opposition-controlled Legislative 
Yuan (LY), especially on passage of the USD 18 billion 
Special Defense Procurement Budget.  Ke admitted that the Yu 
cabinet's confrontational approach to the LY contributed to 
legislative gridlock over the past several years.  While 
Hsieh left the door open to including Pan-Blue figures in the 
cabinet, there is little expectation that posts in the new EY 
will be given to opposition figures. 
 
Hsieh Cabinet: Old Wine in a New Bottle? 
---------------------------------------- 
 
4. (C) Hsieh did not immediately announce his new cabinet 
team, but Democratic Progressive Party (DPP) officials tell 
AIT that the Hsieh cabinet is unlikely to contain many new 
faces.  EY Research, Development, and Evaluation Council 
(RDEC) Vice Minister Chen Chun-lin told AIT that there may 
well be a two-stage cabinet reshuffle process.  The first 
round, to be announced before February 1, is likely to 
involve the departure of those figures closest to outgoing 
Premier Yu, including EY Secretary General Arthur Iap 
(Comment: Iap, a cross-Strait hard-liner, used his EY 
position to challenge the NSC on foreign policy.  End 
Comment.).  The second round, likely in March, would involve 
those current cabinet members slated to run for office in the 
December local magistrate/mayor election, including 
Government Information Office (GIO) Director Lin Chia-lung 
and Mainland Affairs Council (MAC) Senior Vice Chairman Chiu 
Tai-san. 
 
5. (C) Presidential confidante and Hakka Affairs Council 
(HAC) Minister Luo Wen-chia told AIT that President Chen will 
give Hsieh little choice over either round of cabinet 
personnel selections.  Luo said that Chen is focused on 
keeping Hsieh and DPP Chairman-designate Su Tseng-chang from 
gaining too much personal political momentum ahead of their 
expected showdown for the 2008 DPP presidential nomination. 
Luo added that Chen also plans to retain complete control 
over the foreign and cross-Strait policy apparatus. 
 
Other Changes 
------------- 
 
6. (C) Chen also used his January 25 press conference to 
announce his decision to appoint outgoing Premier Yu as his 
new Presidential Office Secretary General.  Yu held the same 
job before his move to the EY in 2002.  HAC's Luo said that 
the Yu decision was mainly the result of a lack of 
alternatives.  "If we had appointed someone with less 
seniority, it would be seen as an expansion in the field of 
possible presidential contenders," Luo added. 
 
Comment: A New Beginning? 
------------------------- 
 
7. (C) With key posts such as the Vice Premier still 
unfilled, it may be premature to assess how effective the 
Hsieh cabinet will be in advancing the Chen administration's 
legislative and economic agendas.  In his past interactions 
with AIT, Hsieh has proven to be clear-headed on policy and 
non-ideological (by DPP standards) on sensitive issues of 
sovereignty and cross-Strait relations (Septel).  Perhaps the 
most critical question will be whether Chen will allow Hsieh 
enough authority to effectively lead his cabinet and engage 
the opposition in the LY.  Early indications are not 
encouraging.  However, at the very least, Hsieh will be an 
improvement over the bumbling and insecure Yu Shyi-kun, whose 
tenure was marked by legislative gridlock and policy drift. 
PAAL