US embassy cable - 05TAIPEI2853

UNCLAS SECTION 01 OF 02 TAIPEI 002853 
 
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, Cross Strait Politics, Domestic Politics 
SUBJECT: MEDIA REACTION: THE RISE OF CHINA 
 
 
Summary:  The Taipei dailies continued June 30 to focus 
their news coverage on local politics and the Executive 
Yuan's approval of a package of revisions to the 
Referendum Law, but some newspapers turned to the topic 
of China's rise and the possible threat it could pose 
to the United States and Taiwan on their editorial 
pages.  An editorial in the pro-independence "Liberty 
Times," Taiwan's biggest daily, urged the world to be 
vigilant about the expansion of Chinese hegemony.  A 
centrist "China Times" commentary, however, noted that 
the United States' plan to contain the rise of China 
completely meets the interests of the Chen Shui-bian 
administration.  End summary. 
 
A) "People All over the World Should Be Alert about the 
Expansion of the Chinese Hegemony" 
 
The pro-independence "Liberty Times" [circulation: 
800,000] asserted in its editorial (6/30): 
 
". To eliminate the world's vigilance about its rise, 
China has deliberately put out a theory about China's 
peaceful rising in an attempt to put on a fake mask of 
`peace'.  But the emergence of China is like a rocket 
soaring into the sky; once it loses control and 
crashes, it will not only generate a big economic shock 
but will also create a big disaster for global peace 
and order. . Taiwan's first-ever National Security 
Report, to be released soon, has clearly listed 
`China's rise' as the biggest variable in the security 
of Taiwan's exterior environment.  China's enactment of 
the `Anti-Secession Law' is in reality an element of 
its strategy to expand its sea power, an attempt to 
annex Taiwan and use it as a `forward base' for its 
long-term sea power expansion strategy.  China also put 
its hand into Southeast Asia by promoting the `good 
neighbor policy,' `ASEAN plus Three,' and `China-ASEAN 
free trade zone.' 
 
"In a nutshell, the rise of China does not indicate the 
positive interaction of globalizing economics but a 
potential regional military conflict crisis.  It 
symbolizes disaster rather than opportunity.  Taiwan 
will be the first to bear the brunt of [such an 
impact], and thus it must not have any unrealistic 
illusions about the Chinese market.  Taiwan needs to 
thoroughly `de-sinicize' in terms of economic 
development and national identity so that it can become 
a normal country in the short term and establish itself 
into a paradise for its people and the generations to 
come in the long term." 
 
B) "Bian Echoes United States' [Call to] Contain the 
Rise of China" 
 
Journalist Lin Shu-ling commented in the "My Views" 
column of the centrist, pro-status quo "China Times" 
[circulation: 600,000] (6/30): 
 
"Even though the contents of [Taiwan's first] `National 
Security Report,' currently drafted by the Presidential 
Office, are not yet clear, the policy direction 
released by high-ranking officials recently shows that 
it is quite evident that the Bian administration 
intends to jump on the U.S. wagon of containing `the 
rise of China' and strengthen the alliance between 
Taiwan and the United States. . 
 
"The United States has shown great concern lately about 
the threat caused by `the rise of China.'  China, 
heeding the U.S. concern, has been acting very 
cautious, trying to avoid talking about this issue in a 
big way.  It also uses the words "China's development' 
to replace `the rise of China' to avoid goading the 
United States excessively.  But no matter how China 
tries to package [its intent], its significant 
increases in military expenses, the active expansion 
overseas of its state-run enterprises, and its 
resistance to the appreciation of its currency have all 
posed threats to the United States and both countries 
continue to compete with each other without really 
talking about it. . 
 
"Judged from the perspective of opposing the `rise of 
China,' many voices in the United States are saying the 
main reason behind the soaring Chinese economy is 
Taiwan businessmen's capital and technology invested in 
China.  Lately, similar discussions are underway as a 
result of the heated discussion about China National 
Offshore Oil Corporation's plan to buy U.S.-based 
Unocal Corporation.  The Chen Shui-bian 
administration's recent move to discuss plans to 
tighten Taiwan's cross-Strait trade policy again seems 
to be an echo of the Unocal case and an attempt to 
curry favor [with the United States]. 
 
"Washington's attempt to contain the `rise of China' 
completely meets the interests of the Chen Shui-bian 
administration.  The Taiwan authorities' intention to 
ride on the wagon [with the United States] is more than 
evident.  But it remains to be seen whether the Taiwan 
businesses which have relied deeply on China's economy 
can stand the government's sudden change of policy and 
what the government's follow-up actions will be." 
 
PAAL