US embassy cable - 05TAIPEI2554

UNCLAS TAIPEI 002554 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR EAP/TC, H-LMO Peter Su 
DEPT PLEASE PASS TO AIT/W 
 
E.O. 12958: N/A 
TAGS: OREP, PGOV, PINS, PREL, MASS, ETRD, CH, TW, Cross Strait Politics 
SUBJECT: Congressman Kennedy Urges LY Chairman Wang Jin-pyng 
to Pass Special Military Budget 
 
1. (SBU) Summary: Congressman Mark Kennedy (R-MN) met with 
Taiwanese Legislative Yuan Chairman Wang Jin-pyng on June 4, 
2005.  Wang expressed his hopes for a U.S.-Taiwan free trade 
agreement (FTA) and asked the Congressman for his support. 
Congressman Kennedy, in turn, raised concerns over the 
Special Defense Procurement Budget, stating that Taiwan 
needs to move forward on this before the Congress would 
consider support for an FTA.  Wang cited legislative 
elections last year as a reason for the delay and promised 
to do all he could to resolve the issue as soon as possible. 
End Summary. 
 
2. (SBU) After an initial exchange of pleasantries, Wang 
emphasized the importance of trade relations between the 
U.S. and Taiwan and his hopes for a bilateral FTA in the 
near future.  He underlined Taiwan's commitment to this 
goal, noting recent improvements in Taiwan's regulatory 
environment for telecommunications, pharmaceuticals, rice 
and intellectual property rights (IPR).  As an example, he 
mentioned how Taiwan's legislature had passed revisions to 
the Copyright Law last year to meet USG demands.  He asked 
the Congressman for his personal support in establishing an 
FTA. 
 
3. (SBU) Congressman Kennedy began by praising Taiwan for 
its commitment to democracy and open markets.  He applauded 
Taiwan's regulatory reforms and affirmed his own support for 
greater bilateral trade.  He also expressed his gratitude to 
Taiwan for opening its markets to U.S. beef again, stating 
that this issue was of particular concern to his 
constituents in Minnesota. 
 
4. (SBU) Congressman Kennedy said that the U.S. Congress 
sees the Special Defense Procurement Budget as a litmus test 
for Taiwan's commitment to defend itself.  Rep. Kennedy 
noted that Congress is unlikely to consider support for an 
FTA seriously unless Taiwan were to take responsibility for 
its own defense.  He noted that the funding for military 
purchases had been proposed by the KMT years ago and that it 
was important for Taiwan to take these measures to help 
defend itself.  He expressed hopes that military and trade 
issues like this would not become politicized in Taiwan. 
 
5. (SBU) Wang responded that he understood these concerns, 
and he recognized the need for Taiwan to maintain military 
balance across the Taiwan Strait.  He explained that the 
delay was partly caused by the legislative elections last 
year, and he stated that this issue would come up again 
later this year in county, city, and magistrate elections. 
Wang noted that a number of opposition legislators openly 
campaigned against the special budget and are now reluctant 
to reverse their positions.  He indicated that he hoped a 
special session of the legislature would be held within the 
next few months, but could not be certain it would take 
place given opposition from within the Pan-Blue camp.  He 
expressed his hope for eventual resolution and promised to 
do all he could to push this issue forward. 
 
6. (SBU) Congressman Kennedy reiterated how this issue 
should not become politicized.  He said that he understood 
the Taiwan legislators' predicament but hoped that they 
would come through with "tough votes" in the end. 
 
7. (U) Congressman Kennedy's office has cleared this 
message. 
 
PAAL