US embassy cable - 05TAIPEI2658

UNCLAS SECTION 01 OF 02 TAIPEI 002658 
 
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, ESTH, Cross Strait Economics 
SUBJECT: MEDIA REACTION: Cross-Strait Affairs 
 
Summary: 1. Taiwan dailies June 17 focused on two ongoing 
issues: flooding in southern Taiwan and the fishery dispute 
between Taiwan and Japan.  The pro-independence "Liberty 
Times," Taiwan's largest daily, the conservative, pro- 
unification "United Daily News," and the pro-independence 
"Taiwan Daily" all carried photos of flooded areas in 
southern Taiwan on their front pages.  The "Liberty Times" 
carried a banner headline of its first page that read: 
"Heavy Rains Seriously Jeopardized [Southern Taiwan,] 
Agricultural Losses Are Worth More Than NT$1.4 Billion." 
 
2. In terms of editorials and commentaries, Taiwan dailies 
focused on local issues (e.g. Premier Frank Hsieh's plan to 
deal with the flooding) and the Taiwan-Japan relationship 
(e.g. protest held by Taiwan aboriginal Legislator May Chin 
in front of Japan's Yasukuni Shrine).  Three other 
editorials, however, focused on cross-Strait relations from 
an economic perspective.  The pro-independence "Liberty 
Times," for example, focused on China's "incremental 
unification" policy toward Taiwan.  Its editorial said the 
Taiwan government has treated Taiwan merchants based in 
China so positively that Taiwan has fallen into a trap of 
China's incremental unification policy.  The pro- 
independence "Taiwan Daily" editorialized that China's 
policy to loosen its restriction on the employment of Taiwan 
people in China is a form of unification propaganda, and 
added that the purpose of China's policy is to lure away all 
of Taiwan's talented people.  The pro-independence "Taipei 
Times" also said in its editorial that China's policy 
welcoming Taiwan people to work in China is a reflection of 
the "One China" principle, and warned that Taiwan should not 
lose its economic edge against China.  End summary. 
 
A) "Taiwan Should Worry About [China's] `Incremental 
Unification' [Toward Taiwan]" 
 
The pro-independence "Liberty Times" [circulation: 
800,000](06/17) editorialized: 
 
"What is `incremental unification'?  [Taiwan's] 
internalization of cross-Strait relations and the 
normalization of the `One China' principle are one of the 
forms; the economic development conference, proactive- 
opening [toward China], and cross-Strait charter flights are 
the other forms.  The former forms belong to the political 
aspect, while the latter ones the economic aspect.  The 
interactions between both aspects lead to an integration. 
The economic aspect of incremental unification, especially, 
is dissolving Taiwan peoples' psychological defense toward 
the threat of China, and blurring the red line between 
Taiwan and China.  In the beginning, Taiwan merchants (who 
invest in China) have a sense of sin for assisting the 
enemy, i.e. China.  With the [Taiwan] officials' 
expectations and blessings, however, those merchants 
incrementally become pioneers of the Taiwan economy. 
Moreover, they are considered to have contributed to 
Taiwan's economy.  Whenever there are important Chinese 
holidays, cross-Strait charter flights are arranged for them 
to allow them return as heroes (Taiwan merchants in the 
United States do not have such honorary treatment; they have 
to catch airplanes by themselves, and the way home is 
farther).  When Taiwan merchants based in China return to 
Taiwan, they enjoy standardized luncheons, and even the 
president [of Taiwan] has to head government officials to 
attend the luncheons and learn from them.  We can say the 
government's policies have centered on China as well as 
Taiwan's merchants based in China.  When the situation comes 
to this stage, there is no way and no spare moment [for the 
government] to take care of domestic investments and 
constructions for infrastructures. ." 
 
B) "China's Policy That Allows Taiwan People To Work In 
China Is An Unification Propaganda That Would Vacuum The 
Talented Taiwan People" 
 
The pro-independence "Taiwan Daily" [circulation: 
150,000](06/17) editorialized: 
 
". There is a very evident political motive behind the 
China's policy to loosen its restrictions on the employment 
of the Taiwan people in China.  The motive is to attract 
talented Taiwan people to leave their country, and to vacuum 
Taiwan's human resources.  As a result, Taiwan's managerial 
and skilled people would leave Taiwan massively, and as a 
result, a crisis of Taiwan's economic development might 
occur.  Since China absorbs a lot of Taiwan's technical 
people, there would clearly be a shortage of domestic 
managerial people, and a salary rise for technical people. 
There would be, however, excess entry-level workers, and 
would consequently cause an imbalance in Taiwan's human 
resources.  Moreover, the imbalance might expand itself to 
become a social problem.  As the old saying goes: `The water 
always goes to low grounds, while a man climbs to a high 
ground.'  China has set a goal in its unification propaganda 
to attract Taiwan's talented people, and would initially try 
all the means, release many favorable measures to `invite 
them to a trap.'  China has tried to utilize the opening of 
its job market as a test trial to vacuum Taiwan's talented 
people.  After China has successfully developed its economy, 
and after China's enterprises have cultivated their own 
technical people, Taiwan people who seek positions in China 
will no longer be hired, and it will to too late for them to 
regret. ." 
 
C) "Exodus of Workers Unlikely" 
 
The pro-independence "Taipei Times" [circulation: 
30,000](06/17) editorialized: 
 
". [I]t is unlikely that Beijing's move is unrelated to `one 
China' propaganda. The restrictions being lifted are of the 
type other countries impose on foreign workers to protect 
local employees. For example, the US government imposes 
similar restrictions in issuing work visas to foreigners. 
 
"So Beijing's move is once again mostly symbolic -- 
signifying that Taiwanese receive similar treatment under 
Chinese law simply because they too are "Chinese" -- but 
without otherwise offering any substantive benefits. . 
 
"The real focus of Taiwan's concern should not be the exodus 
of entry-level and non-professional workers to China. 
Rather, it is how to maintain the competitive edge of the 
workforce, so that foreign and domestic investors will be 
willing to invest and create even more work opportunities 
here. 
 
"Within the high-technology industry in particular, a high- 
priority task is to ensure that the workforce's research and 
development capabilities stay ahead of China's." 
 
PAAL