US embassy cable - 05TAIPEI2556

UNCLAS TAIPEI 002556 
 
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, EINV, CH, TW 
SUBJECT: Congressman Mark Kennedy and Foreign Minister Chen 
Discuss Special Military Budget and Economic Issues 
 
1. (SBU) Congressman Mark Kennedy from Minnesota's Sixth 
District met with Taiwan Foreign Minister Mark Chen (Chen 
Tan-sun) June 5 during a two-day trip to Taiwan, covering 
many of the same issues he discussed with President Chen and 
Legislative Yuan Chairman Wang Jin-pyng (reported septels). 
Congressman Kennedy praised Taiwan for reopening its beef 
market to U.S. imports and progress on the protection of 
intellectual property.  He urged Taiwan to continue to 
maintain and expand market access for U.S. goods, especially 
medical products, in which Minnesota is particularly 
competitive.  He suggested Taiwan could look to the 
Netherlands, which serves as a gateway to Europe for many 
U.S. firms, as a model for Taiwan in Greater China.  He 
commented that Taiwan should relax unnecessary restrictions 
on businesses to capitalize on its advantages as a place for 
U.S. businesses to operate.  As examples of these types of 
regulations, he cited restrictions on the employment of 
foreign interns and limits on cross-Strait investment for 
firms based in Taiwan.  Chen, in turn, asked Congressman 
Kennedy to support a free trade agreement with Taiwan. 
Congressman Kennedy affirmed his support for advancing trade 
but noted the political sensitivities in the U.S. 
surrounding free trade agreements. 
 
2. (SBU) Congressman Kennedy also told Chen that passage of 
the Special Defense Procurement Budget was important to the 
United States.  He noted that Japan pays for 85 percent of 
the costs of U.S. forces based in Japan and that South Korea 
pays for 40 percent of the costs of U.S. troops there.  He 
asked that Taiwan not take the U.S. for granted and invest 
in its own defense.  Chen assured Congressman Kennedy that 
this issue was at the top of President Chen's agenda and 
that both the President and Minister of National Defense 
were working hard to get the Special Budget passed by the 
Legislative Yuan.  He noted that the Minister of National 
Defense had said he would resign if the bill were not 
passed.  Chen pledged to do his own part in public 
appearances to promote the bill.  He offered that Taiwan 
would be willing to reimburse costs for U.S. troops based in 
Taiwan.  Congressman Kennedy indicated that passage of the 
Special Budget would be enough. 
 
3. (U) Congressman Kennedy's office has cleared this 
message. 
 
PAAL