US embassy cable - 05TAIPEI1851

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 001851 
 
SIPDIS 
 
USDA FAS FOR OA; CMP/DLP 
STATE PASS AIT/W 
 
E.O. 12958: DECL: 04/20/2015 
TAGS: ECON, PGOV, PREL, TW 
SUBJECT:  LOBBYING FOR BEEF: TECHNICAL EXPERTISE AND 
DIPLOMATIC INTERVENTION 
 
Classified By: AIT Director Douglas H. Paal, Reason 1.4 (b/d) 
 
1.  (C) Summary.  The fifteen-month odyssey to end the Taiwan 
ban on U.S. beef imports concluded April 16, with the formal 
announcement that the ban was lifted.  The first beef 
shipments are expected to arrive in Taiwan by the end of 
April.  Even at the last moment, when the battle appeared 
won, new bureaucratic and political obstacles rose to 
obstruct lifting the ban.  These complex negotiations 
required the tandem effort of technical agricultural/economic 
consultations and political/ diplomatic intervention.  At 
critical junctures in the negotiation end game, the AIT 
Director had to weigh in at the highest levels in Taipei to 
maintain forward momentum.  With legislative opposition to 
Taipei's decision to lift the ban continuing, AIT will work 
with both government and legislators to ensure accurate 
information on the U.S. beef inspection system.  End Summary. 
 
 
2.  (U) On Christmas Eve, 2003, Taiwan imposed a temporary 
suspension on U.S. beef and beef product imports, which had 
totaled U.S. $325 million that year.  Over the next fifteen 
months, USDA officials in Washington and at AIT worked with 
Taiwan health and agricultural authorities to convey detailed 
technical information and respond to numerous questions in an 
effort to lift the temporary beef import suspension. 
Undersecretary Penn and other USDA officials and scientists 
corresponded with and traveled to Taiwan to press the 
scientific case for lifting the ban.  The strongest reservoir 
of resistance came from the Council of Agriculture (COA). 
 
3.  (C) In his introductory call on the new Premier, Frank 
Hsieh (Chang-ting), on February 14, the AIT Director urged 
the Taiwan government to lift the ban on U.S. beef, calling 
the Premier,s attention to the abundance of scientific data 
USDA had provided to Taiwan authorities.  On March 18 and 19, 
the Minister of Foreign Affairs and the Premier separately 
informed the Director that the decision had been made to 
re-open the market.  At a dinner with President Chen 
Shui-bian and Premier Hsieh on March 21, the Director again 
raised the beef import ban, urging that U.S. beef imports be 
resumed as soon as possible.  Both men voiced their strong 
support for lifting the ban. 
 
4.  (U) In mid-March, however, several Legislative Yuan (LY) 
members began publicly voicing objections to lifting the ban. 
 Taipei Solidarity Union (TSU) legislator Lai Hsin-yuan 
challenged the government's plans to reopen the Taiwan market 
to American beef, charging the government deliberately 
ignored questions raised by the COA about the risks of BSE 
contamination from imported American beef.  The Director 
telephoned Lai on March 16, using points prepared by the AIT 
Agriculture Section to describe the U.S. safeguards in place. 
 He explained how, contrary to her allegations, which may 
have been fed her by COA, this is properly a Health Ministry 
issue and how the ministry,s actions in preparing to reopen 
the market are all fully in accord with the guidelines of the 
World Animal Health Organization.  AIT Agriculture Section 
followed up by providing Lai with supporting documentation. 
The COA, however, continued its opposition to lifting the ban 
and sought to devise administrative procedures to effectively 
continue the ban. 
 
5.  (C) The AIT Director telephoned National Security Council 
(NSC) Secretary General Chiou I-Jen -- who had been present 
at the March 21 dinner during which both President and 
Premier voiced their strong support for rescinding the ban -- 
calling Chiou,s attention to COA maneuvering to block 
rescission of the ban and requesting his assistance.  On 
March 24, SecGen Chiou called the Director to inform him that 
DOH had just published a notice on its website lifting the 
ban on U.S. beef imports.  NSC Senior Advisor Connie Yang, he 
explained, had convinced the COA to back off its demands. 
The DOH notice, however, listed several conditions, including 
the seemingly innocuous requirement that the beef must come 
from animals &born, raised, and slaughtered in the U.S.8 
The "born in" provision reflected the concern of Taiwan 
health authorities over USDA plans to resume imports of live 
cattle from Canada, since this raised the possibility that 
banned Canadian beef might be exported to Taiwan via the U.S. 
 The "born in" requirement would be impossible for USDA to 
meet, however, because of the ongoing and well-established 
U.S. animal trade with Mexico. 
 
6.  (C) Taiwan authorities proved receptive to USDA 
explanations on the nature of the U.S. cattle industry. 
Given the highly partisan nature of Taiwan politics, however, 
it would have been politically difficult for DOH to make a 
high-profile public correction of the March 24 announcement. 
AIT, moreover, wanted to maintain a low public profile on 
this discussion to avoid politicizing the issue and 
encouraging possible negative public reaction.  Additional 
meetings between the AIT Agricultural Section and DOH, and an 
exchange of letters between USDA and DOH, resolved the "born 
in" issue.  DOH agreed that U.S. beef export documents 
stating that beef &derived from cattle under the age of 
thirty months slaughtered in the United States" satisfied 
their intention that beef be produced in the U.S.  The 
letters were also sufficient for USDA to begin writing 
Wholesomeness and Export Certificates on April 16, with the 
first beef shipments expected to arrive in coming days. 
There will not, however, be an immediate DOH public 
announcement modifying the "born in" phrase. 
 
7.  (U) While public reaction since the March 24 announcement 
has been largely positive, Legislative Yuan (LY) member Lai 
Hsin-yuan called a press conference on April 16 to challenge 
the decision and to threaten the DOH with legal action.  On 
April 19, Lai filed an appeal with the Executive Yuan Appeal 
Committee seeking to overturn the DOH decision to resume U.S. 
beef imports.  Legislator Winston Dang has requested AIT to 
provide information on the U.S. beef inspection process in 
regard to Lai,s appeal. 
 
8.  (C) Comment.  The heavy comprehensive series of technical 
discussions and documentary evidence marshalled by USDA was 
essential at every step of the way in the rescission fight. 
At the same time, facts and scientific data could go only so 
far before running into hard political walls in Taiwan.  In 
such a highly politicized environment, AIT lobbying helped 
the government find the political will to lift the U.S. beef 
import ban.  AIT will continue closely following -- and 
countering with information and data -- Lai,s appeal and any 
other legislative opposition that develops. 
PAAL