US embassy cable - 05TAIPEI1514

C O N F I D E N T I A L TAIPEI 001514 
 
SIPDIS 
 
STATE PASS AIT/W 
 
E.O. 12958: DECL: 02/01/2015 
TAGS: MASS, MARR, PREL, PGOV, TW 
SUBJECT: SPECIAL DEFENSE BUDGET REMAINS STUCK IN PROCEDURE 
COMMITTEE 
 
REF: TAIPEI 1201 
 
Classified By: AIT Director Douglas Paal, Reason: 1.4 (B/D) 
 
1. (C) Summary: The KMT and People First Party (PFP) rejected 
the government's request to place the special defense 
procurement budget on the Legislative Yuan (LY) calendar 
during a March 29 meeting of the Procedure Committee.  This 
was the second week in a row that the committee refused to 
place the special budget package on the legislative agenda. 
Legislators from both camps have cautioned AIT not to 
interpret Pan-Blue posturing on the budget early in the 
session as an indication that the LY will not eventually act 
on the three special budget programs. 
 
2 (C) Nevertheless, PFP Policy Chief Vincent Chang told AIT 
on March 24 that party Chairman James Soong has been unable 
to convince the independent-minded PFP Caucus leadership to 
drop objections to using a special budget to fund the three 
procurement items (Reftel).  Chang said the Chen 
administration will have to make major concessions, perhaps 
involving the submarines, in order to provide Soong enough 
cover to bring his party around. 
 
3. (C) Democratic Progressive Party (DPP) Defense Committee 
Co-chairman Lee Wen-chung told AIT that the government is 
willing to compromise on almost any aspect of the budget 
package except calls by some Pan-Blue legislators to 
eliminate one or more of the three special budget programs. 
Lee said the DPP is even willing to consider meeting the 
KMT's demand to cut the special budget price tag to 305 
billion NTD (USD 10 billion) on the condition that the LY 
simultaneously pass a resolution dictating an increase in the 
regular annual procurement budget to fully cover out-year 
costs for the three programs. 
PAAL