US embassy cable - 05TAIPEI1554

UNCLAS SECTION 01 OF 02 TAIPEI 001554 
 
SIPDIS 
 
DEPARTMENT FOR INR/R/MR, EAP/RSP/TC, EAP/PA, EAP/PD - 
ROBERT PALLADINO 
DEPARTMENT PASS AIT/WASHINGTON 
 
E.O. 12958: N/A 
TAGS: OPRC, KMDR, KPAO, TW, Cross Strait Politics, Domestic Politics 
SUBJECT: MEDIA REACTION: CROSS-STRAIT RELATIONS 
 
 
1. Summary: The coverage of the major Taipei dailies 
March 30 focused on KMT Vice Chairman Chiang Pin-kun's 
visit to China aimed at promoting cross-Strait 
relations.  The major Chinese-language newspapers ran, 
either on their front pages or one of the first few 
inside pages, the news that President Chen Shui-bian 
blasted Chiang's visit and called the "peace-talks" 
between the KMT and the Chinese Communist Party as a 
move to turn back the clock.  The pro-unification 
"United Daily News," however, said on its front page 
that President Chen and Premier Frank Hsieh held 
different views of Chiang's visit -- as Hsieh said he 
would give his blessing to the visit if the 
reconciliation between the KMT and CCP would help 
Taiwan.  Taiwan's largest daily, the pro-independence 
"Liberty Times," ran a banner headline on its front 
page that read: "Chiang Pin-kun visits China but drops 
the `Republic'"; the paper criticized Chiang for 
failing to protest when China deliberately omitted the 
word "Republic" when referring to the "Republic of 
China" in a message drafted by the KMT meant to be 
offered at a ceremony.  The centrist "China Times" 
carried a page-two story with the headline: "[KMT 
Chairman] Lien Chan is expected to visit mainland China 
in mid-May." 
 
2.  A "United Daily News" editorial discussed Taiwan's 
situation in the aftermath of the massive March 26 
demonstration, and noted those who push for Taiwan 
independence dare not really declare independence; in 
addition, the editorial stressed that Taiwan's 
businesses are moving to China even without the three 
links.  An op-ed piece in the limited-circulation, pro- 
independence English-language "Taipei Times" said the 
next few months would be a real test for cross-Strait 
relations, and how Taiwan adjusts its cross-Strait 
policies while making the best use of international 
leverage will determine the outcome of the tough 
battle.  End summary. 
 
A) "Spells Cast on Taiwan: Those Who Push for Taiwan 
Independence Do Not Dare to Really Declare 
Independence; [Taiwan Businesses] Keep on Moving 
Westbound without the Three Links" 
 
The pro-unification "United Daily News" [circulation: 
600,000] editorialized (3/30): 
 
". An objective view of both Taiwan's domestic 
situation and the international community situation 
shows that [the road to] Taiwan independence is 
`absolutely a dead end' - something that cannot be 
accomplished.  But the island's political 
predestination seems to be that even though both 
Washington and Beijing have drawn a red line [regarding 
Taiwan independence] and even though the Taiwan 
independence supporters realize that they cannot cross 
the red line, they still insist on pushing for 
independence movements within the red line [area] 
anyway.  Yes, they cannot cross the red line even when 
they continue pushing; all they achieve is putting 
Taiwan in a state of division, deconstructing and 
exhausting [Taiwan] without getting it anywhere. 
 
"As for [Taiwan's businesses] moving westbound without 
the three direct links [across the Taiwan Strait], 
Taiwan's reliance on mainland China's economy has 
continually increased even in the face of the calls for 
the `no haste, less speed' [policy] and Taiwan's name- 
change and constitutional reform plan.  [Taiwan 
business tycoon] Hsu Wen-lung's statement that `I think 
Taiwan's economic development cannot be separated from 
that of mainland China's' clearly indicates that such a 
westbound movement of Taiwan's industry is already an 
inevitable trend. . 
 
"Those who push for Taiwan independence do not dare to 
really declare independence, but what they do has 
continually increased the hostility between both sides 
of the Taiwan Strait and has split the island even 
further.  Taiwan's businesses are moving westbound 
without the three links, and Taiwan has failed to 
create a mechanism to keep the root of its businesses 
in Taiwan.  [We want to] ask President Chen if he wants 
to claim this as [being part of] his administrative 
performance, and also, is this the political and 
economic routes of our country that was upheld during 
the mass rally on March 26?" 
 
B) "Next Steps Crucial in Cross-Strait Stand-off" 
 
Liu Kuan-teh, a Taipei-based political commentator, 
noted in the pro-independence, English-language "Taipei 
Times" [circulation: 30,000] (3/30): 
 
". After the parade, the month-long battle between 
Taiwan and China over Beijing's legislation has entered 
into the next stage - an even more decisive struggle 
about how to forge an institutionalized and peace- 
oriented cross-strait interaction. . 
 
"Chen [Shui-bian] must redouble his efforts to conduct 
intensive and frank communication with the US and other 
major countries to reiterate Taiwan's stance of 
`reconciliation without flinching, standing firm yet 
avoiding confrontation.'  Moreover, maintaining candid 
and frequent communication will help Taiwan's 
government learn what is on the minds of the leaders of 
the People's Republic of China (PRC). 
 
"Washington's role remains significant and crucial to 
Taiwan's next steps.  Various reports have hinted that 
the US administration of President George W. Bush might 
talk Beijing into accepting Taipei's bid for observer 
status in the World Health Assembly.  In that case, 
Taiwan should carefully consider whether to accept 
whatever Washington offers. 
 
"Washington's next step also must be to determine the 
`red lines' of the PRC authorities and define the 
`three conditions' under which Beijing would use `non- 
peaceful means' to try to take over Taiwan. 
 
"The next few months will be the real test for cross- 
strait relations.  Taiwan's strategy of `self- 
restraint' changed its image and put the all in China's 
court.  Nevertheless, how Taiwan adjusts its cross- 
strait policy while making the best use of 
international leverage will determine the final victory 
in this tough battle." 
 
PAAL