US embassy cable - 05TAIPEI1086

C O N F I D E N T I A L SECTION 01 OF 03 TAIPEI 001086 
 
SIPDIS 
 
STATE PASS AIT/W 
 
E.O. 12958: DECL: 03/05/2015 
TAGS: PREL, PGOV, MARR, TW, IS 
SUBJECT: TAIWAN SEEKING CLOSER TIES TO ISRAEL 
 
Classified By: AIT Director Douglas Paal; Reasons: 1.4 (B/D) 
 
1. (C) Summary.  Taiwan is seeking closer political, 
economic, and security ties with Israel.  Taiwan Ministry of 
Foreign Affairs (MOFA) officials are accelerating their 
campaign to use NGOs and think-tanks to promote Taipei's 
interests in Israel.  Despite Israel's one-China policy, Tel 
Aviv permits high-level political visits by MOFA officials 
and last year abstained in the vote for Taiwan's observership 
bid to join the World Health Assembly (WHA).  In response, 
Beijing has reportedly stepped up diplomatic pressure on and 
official protests to Tel Aviv in both Israel and abroad. 
Many Taiwan officials have considerable respect for Israel 
and see Tel Aviv's strong defense as a model for Taipei. 
Taiwan National Security Council (NSC) officials are looking 
to private Israeli military and intelligence organizations 
for expertise and assistance to bolster Taipei's capabilities 
vis-a-vis Beijing.  Economic ties in high-tech sectors and 
direct investment between Taiwan and Israel are on the rise 
and heavily promoted by both sides.  Taipei values its 
relationship with Tel Aviv and appears more willing than 
usual to maintain a low profile to ensure cooperation is not 
jeopardized.  End summary. 
 
Taipei Pushing Closer Ties 
-------------------------- 
 
2. (C) Taipei is actively pursuing economic, cultural, and 
political contacts with Tel Aviv.  Taiwan began its efforts 
to bolster ties with Israel in the 1990s after Tel Aviv 
established diplomatic relations with Beijing.  Israel has 
never recognized Taiwan, but Israel's Representative and head 
of the Israel Economic and Cultural Office in Taipei (ISECO), 
Ruth Kahanoff, told AIT that Taiwan MOFA officials have told 
her that they are under considerable pressure to show 
political achievements and breakthroughs.  She said that 
Taipei has been actively using NGOs and think-tanks to 
promote Taipei's political agenda and expand contacts with 
Israel.  There have also been a number of scientific, 
agriculture, and cultural exchanges.  Kahanoff added that in 
the Israeli Parliament (Knesset), there is a Taiwan-Israel 
friendship group.  She noted that Taiwan has a lot of respect 
for Israel and often compares its own situation to Tel 
Aviv's.  They are both small powers, surrounded by hostile 
neighbors, have diplomatic difficulties abroad, and are 
democracies in a non-democratic region.  NSC Deputy 
Secretary-General Parris Chang told AIT that Israel's 
 
SIPDIS 
national security situation mirrors Taiwan's and that Tel 
Aviv should serve as a model for Taipei.  Kahanoff 
acknowledged there are similarities, but emphasized that 
there are also significant differences between Taiwan and 
Israel. 
 
Some Political Gains 
-------------------- 
 
3. (C) Taipei has been successful in garnering Tel Aviv's 
support on some political issues.  Stressing that Israel 
maintains a clear one-China policy, Kahanoff pointed out that 
Tel Aviv and Taipei have a good dialogue on a variety of 
issues, noting that last year Israel abstained in Taiwan's 
bid to acquire observer status in the WHA.  According to 
Kahanoff, Tel Aviv wanted to make a statement to Beijing that 
politicization of public health should not be tolerated.  She 
also stated that high-level visits by Taiwanese officials 
occur, but that they are kept at a low profile.  Former 
President Lee Teng-hui, she said, had expressed interest in 
visiting Israel and would be granted a visa if he decided to 
visit.  Sami Leu, Chief of MOFA's West Asian Affairs Section, 
told AIT that Taiwan's relationship with Israel is strong, 
highlighting Tel Aviv's WHA vote last year.  Leu also 
remarked that Taiwan TECRO officials in Tel Aviv have 
unusually open access to Israeli officials. 
 
PRC Increasing Pressure on Israel 
--------------------------------- 
 
4. (C) Israel is facing increased PRC diplomatic pressure on 
its relationship with Taiwan.  According to ISECO's Kahanoff, 
the PRC has lodged a series of protests in Beijing and Tel 
Aviv over the WHA and other Israel-Taiwan contacts.  She 
insisted that Beijing's pressure would not influence Tel 
Aviv's position toward Taiwan, but admitted that it did make 
the situation more inconvenient for Israel.  She also said 
that the PRC protests virtually every contact Israel has with 
Taiwan, particularly the unpublicized high-level MOFA visits. 
 Kahanoff told AIT that Israel politely explains to Beijing 
that the visits are within Tel Aviv's one-China framework and 
that sometimes high-level meetings must be conducted to make 
progress.  MOFA's Leu echoed Kahanoff by telling AIT that 
political visits with Israel often draw the ire of Beijing. 
 
Taiwan Seeking Security Assistance 
---------------------------------- 
 
5. (C) Taiwan NSC officials are seeking consultations from 
private Israeli defense and security organizations.  The 
NSC's Chang told AIT that Taiwan must do a better job in 
defending itself from Beijing and that this was something it 
could learn from Israel.  According to Chang, Israel is 
willing to sell Taiwan weapons, however Taiwan is more 
interested in Israel's vast expertise in military and 
intelligence matters than in military hardware.  Chang said 
he wanted to arrange training from Israeli experts and 
promote defense cooperation.  ISECO's Kahanoff corroborated 
Chang's remarks by telling AIT that Taiwan has approached 
Israel for unofficial security and defense consultations. 
 
6. (C) Kahanoff asserted to AIT that Israel would not provide 
military hardware to Taiwan or the PRC if approached because 
of the Phalcon episode.  In the late 1990s, Tel Aviv had 
agreed to a $250 million deal to provide the PRC with the 
Israeli Phalcon airborne early-warning and control system. 
Washington was concerned the system could be used against 
U.S. forces in the event of a conflict in the Taiwan Strait 
and put heavy pressure on Israel to cancel the deal.  In 
2000, Tel Aviv agreed to cancel the deal and according to 
Kahanoff, the Phalcon episode was seen as an embarrassment to 
both Beijing and Tel Aviv and since then Israel has adopted a 
very cautious weapons sales policy toward the PRC and Taiwan. 
 
7. (C) Taipei appears to be already receiving security 
assistance from retired Israeli experts.  Chang said he had 
arranged for Israel's interdisciplinary Center (IDC) and the 
Jewish Institute of National Security Affairs (JINSA) to 
bring a group of defense experts to Taiwan this Spring.  IDC 
Director of Policy and Strategy Uzi Arad is the former Deputy 
Director of Israel's intelligence service, Mossad.  (Note: 
IDC's Policy and Strategic Institute and JINSA employ retired 
Israeli military and intelligence officers who provide 
expertise in defense matters, counterterrorism, and 
counterintelligence. End note).  Chang told AIT that IDC and 
JINSA have many retired experts in the field of national 
security and defense that can help Taiwan enhance its 
deterrence.  Chang noted that Taiwan is most interested in 
civil defense and psychological warfare issues. 
 
Economic Ties Growing 
--------------------- 
 
8. (C) Economic ties between Taiwan and Israel are rapidly 
growing and are actively promoted by both sides.  ISECO's 
Kahanoff told AIT that both Taipei and Tel Aviv believe they 
have a lot to offer each other commercially.  Kahanoff noted 
that Taiwan is Tel Aviv's third largest trading partner in 
Asia and that trade in the high-tech sector, 
telecommunications, semiconductors, and medical equipment is 
substantial and growing.  She added that there are also 
Taiwanese foreign direct investment and venture capital 
projects in Israel.  Separately, NSC's Chang emphasized that 
Taiwan is working to promote better economic ties with 
Israel.  Taipei, he explained, is pushing a variety of 
commercial initiatives including a Free Trade Agreement 
(FTA).  Kahanoff, however, privately told AIT that this would 
not materialize. 
 
Comment:  Friendly, Yet Cautious Relationship 
--------------------------------------------- 
 
9. (C) Taiwan greatly admires Israel, values its relationship 
with Tel Aviv, and will likely continue to seek closer ties. 
Taiwan NSC officials are particularly eager to develop a 
relationship with Israeli security organizations and defense 
experts.  At the same time, Taiwan government officials are 
keenly aware of the political limits on the relationship with 
Tel Aviv and are willing to maintain a low profile in order 
not to jeopardize Taiwan's national security and commercial 
ties with Israel. 
PAAL