US embassy cable - 05TAIPEI2595

C O N F I D E N T I A L TAIPEI 002595 
 
SIPDIS 
 
E.O. 12958: DECL: 6/13/2030 
TAGS: PREL, ETRD, TW, CH, Cross Strait Politics, Cross Strait Economics 
SUBJECT: PREMIER HSIEH SPEAKS ON CROSS-STRAIT OPENING. 
 
REF: TAIPEI 2566 
 
Classified By: AIT Director Douglas Paal. Reasons E.O. 12958, 1.4 (b,d) 
 
1. (C) MAC chairman Joseph Wu sent us Sunday his proposed 
text for the Premier's remarks reported reftel.  After 
opening with a recitation of all the difficulties that the 
PRC has posed for cross-Strait contacts, the speech then says 
that Taiwan is ready to move forward on cross-Strait charter 
cargo flights using the approach that was successful in 
arranging the passenger charter flights for the 2005 Chinese 
New Year, with each side represented by an industry 
association including government transportation officials. 
The flights would be "by both sides, in both directions, 
without intermediate stops," and Taiwan hopes that the PRC 
will have a concrete response. However, the speech makes no 
reference to the PRC interest in renewing cross-Strait 
charter flights, an omission that Wu told DDIR Monday was 
intentional. 
 
2. (C) The speech then recites all the reasons why 
agricultural exports to mainland China are both unimportant 
to Taiwan economically and difficult to implement. It 
mentions that any opening will require detailed consultations 
between the Council of Agriculture and the MAC to establish 
various regulations and suggests that Premier Hsieh had 
already suggested the "International Trade Association," the 
Taiwan External Trade Development Council (TAITRA) is very 
experienced at such international trade. (Note: TAITRA 
Chairman Hsu Chih-jen has taken a strongly negative view on 
cross-Strait economic relations both in his current position 
and in his previous job as a senior official in the 
Presidential Office.  Hsu is Chen Shui-bian's college 
roommate.  End Note.). Finally on PRC tourists, the speech 
notes that the PRC has restricted the number of tourists it 
has allowed to travel to Taiwan and that there are a wide 
variety of difficult issues that would need to be resolved 
before tourism could be expanded, including perhaps requiring 
tourists to post a security bond. This issue too will require 
extensive interagency coordination. The speech then closes by 
expressing a hope for a positive PRC response. 
 
3. (C) MAC Chairman Wu insisted that the speech was intended 
to express a positive opening toward the PRC.  He said that 
Taiwan is prepared to apply the "Macau Model" for talks on 
all three subjects, and he is confident that the PRC will 
understand that.  Wu added that the PRC State Council's 
Taiwan Affairs office is scheduled to have a press conference 
on June 15, and he hoped that they would express a readiness 
to use the "Macau Model." If they do, then it should be 
possible to make progress fairly rapidly. If, on the other 
hand, they insist on picking which Taiwan organizations they 
will deal with, that will be a sign of difficulties. 
 
4. (C) When DDIR pointed out that he found it very difficult 
to find the openness and optimism of Wu's oral presentation 
is the bureaucratese of the speech text, Wu said that he did 
not expect Hsieh to read the speech directly. Rather he 
expected Hsieh to use his usual approach of putting the ideas 
in his own words, stressing how these approaches fit into his 
emphasis on reconciliation (he-xie). In fact, Wu had urged 
him to take exactly that kind of extemporaneous approach, 
which would produce a much more upbeat message. 
 
5. (C) Comment. It is impossible to predict how much of this 
will actually come across when the speech is finally 
delivered later this evening Taipei Time.  Since the Premier 
knows there are many pro-DPP tourism industries, fruit and 
other exporters, and Taishang interested in taking advantage 
of the openings, it is possible he will  indeed pursue a more 
oblique or accommodating tack in the actual speech. We will 
report on the speech and reactions Tuesday our time. 
PAAL