US embassy cable - 05TAIPEI1151

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 001151 
 
SIPDIS 
 
DEPT PASS AIT/WASHINGTON 
DEPT PLEASE PASS USTR 
 
E.O. 12958: DECL: 03/16/2015 
TAGS: ECON, ETRD, PGOV, TW 
SUBJECT: PREMIER CONTINUES TO MOVE CLOSE AIDES TO KEY 
POSITIONS 
 
 
Classified By: ROBERT W. FORDEN, AIT KAOHSIUNG PRINCIPAL OFFICER. 
REASON:  1.4(B/D). 
 
1.  (C) Summary.  According to long-time allies of Premier 
Frank Hsieh, Hsieh will continue to move key staff from the 
Kaohsiung City Administration to the Executive Yuan. 
However, political considerations are forcing a slow pace in 
the announcements.  Sources told AIT/K that former Kaohsiung 
City Finance Director Kenneth Lin is likely to be named 
Minister Without Portfolio in the next month, to assist Hsieh 
in economic policy.  Lin would replace former Economic 
Minister Lin Yi-fu who is expected to be appointed Taiwan,s 
representative to the WTO.  Also likely to move to EY 
positions in the coming months are Kaohsiung City Social 
Affairs Director, Jason Hung, and Kaohsiung City Finance 
Director, Ray Dawn.  End Summary. 
 
2.  (C) Several long-time allies of Taiwan Premier Frank 
Hsieh in Kaohsiung have told AIT/K that Hsieh continues 
preparations to move his long-time aides into key positions 
in the LY.  In particular, Hsieh is preparing to make moves 
in several EY Minister Without Portfolio positions that 
traditionally have been filled by the Premier,s key advisors 
in core policy areas. 
 
New Minister/Economic Advisor and Representative to WTO 
--------------------------------------------- ---------- 
 
3.  (C) Jason Hung, Kaohsiung City Social Affairs Bureau 
Director and a key player in Hsieh,s former Kaohsiung City 
Government team, told AIT/K March 14 that former Kaohsiung 
City Finance Director Dr. Kenneth Lin will soon be appointed 
to the Minister without Portfolio position now held by former 
Minister of Economic Affairs Lin Yi-fu.  Lin Yi-fu, Hung 
said, will leave that position to become Taiwan,s new 
Representative to the World Trade Organization (WTO).  Hung 
added that Lin Yi-fu,s move to Geneva became likely after 
former Mainland Affairs Commission (MAC) Chairwoman Tsai 
Ing-wen expressed no interest in taking up the WTO post. 
Hung noted that the holder of this Minister without Portfolio 
position was traditionally the Premier,s key advisor on 
economic issues.  The above appointments, he said, would 
likely be announced in April. 
 
New Minister At-Large for Social Affairs? 
----------------------------------------- 
 
4.  (C) Another Minister Without Portfolio position, vacated 
by Chen Chi-Mai when he moved last month to become Acting 
Mayor of Kaohsiung, has also been the subject of media 
speculation.  Former Kaohsiung Finance Director Kenneth Lin, 
current Kaohsiung Finance Director Ray Dawn, and current 
Kaohsiung Social Affairs Director Jason Hung had all been 
mentioned as possible candidates.  However, both Jason Hung 
and Ray Dawn told AIT/K that the Ministerial position vacated 
by Mayor Chen was one that had traditionally taken charge of 
social and cultural issues.  Thus, it was unlikely that 
either Kenneth Lin or Ray Dawn would be appointed to this 
position.  As for Hung, however, his background and 
experience fit.  Hung declined to answer whether he had been 
offered the post, but emphasized to AIT/K that his relations 
with Premier Hsieh went way back and he expected to again 
serve Hsieh in the future.  Separately, however, Hung,s wife 
told AIT/K staff that Premier Hsieh had already told Hung to 
prepare to move to Taipei in mid-summer. 
 
Other Hsieh Aides Wait Patiently 
-------------------------------- 
 
5.  (C) Other former key advisors to PM Hsieh are also 
expected to find new positions in the EY.  In denying media 
reports that he would be appointed to one of the two Minister 
Without Portfolio positions described above, Dr. Ray Dawn, 
the current Kaohsiung City Finance Director, told AIT/K that 
he expected to be named to another position in the 
not-too-distant future.  He pointed out the Premier is under 
a great deal of pressure to find positions for DPP nominees 
who failed in their December 2004 LY election bids.  Dawn 
said that he expected to move to a new position in Taipei, 
but meanwhile he needed to be patient. 
 
Political Considerations Slowing New EY Appointments 
--------------------------------------------- ------- 
 
6.  (C) According to Hung, there are a number of reasons that 
Premier Hsieh is moving slowly to install his own team in the 
EY.  First, Hsieh does not want to force out incumbents who 
have been in their positions for a very short time.  Instead, 
he has tried to signal to them that they should work to find 
new positions and allow them time if possible to prepare for 
a graceful exit.  Moreover, Hung said, Hsieh consults with 
President Chen on all major appointments and will not make 
any moves until he gets Chen,s concurrence.  Finally, in 
order to ensure completion of major projects started during 
Hsieh,s tenure as Kaohsiung Mayor, Hsieh will not move key 
members of the Kaohsiung City Government until he is certain 
that acting-Mayor Chen Chi-Mai has selected replacements 
capable of seeing the projects through to completion. 
 
Comment: Hsieh Moving Deliberately to Take EY,s Reins 
--------------------------------------------- -------- 
7.  (C) Both Hung and Dawn are long-time contacts of AIT/K, 
which considers them reliable.  Both have longstanding and 
close relationships with Premier Hsieh and served in key 
advisory roles in Hsieh,s Kaohsiung City administration. 
Their comments about the factors that are influencing the 
slow pace of Hsieh,s appointments to key EY positions are 
consistent with what we have heard from a variety of 
contacts.  They are also consistent with Hsieh,s management 
style.  When Hsieh took up the reins of the Kaohsiung City 
Government six years ago, he also moved slowly to position 
his closest aides into positions, being careful to ensure 
that he and his allies had a strong command of the issues 
before replacing experienced incumbents.  Hsieh is also 
widely expected to be a leading DPP candidate for President 
in four years.  In assembling his government, he wants to 
ensure positions for key DPP figures, some of whom were 
defeated in the LY election.  This will be important for 
broadening his support for a future presidential run. 
 
FORDEN 
 
PAAL 
PAAL