US embassy cable - 05TAIPEI3247

UNCLAS SECTION 01 OF 02 TAIPEI 003247 
 
SIPDIS 
 
DEPARTMENT FOR EAP/RSP/TC, EAP/PA, EAP/PD - ROBERT 
PALLADINO 
DEPARTMENT PASS AIT/WASHINGTON 
 
E.O. 12958: N/A 
TAGS: PREL, KPAO, TW, Domestic Politics 
SUBJECT: "CHINA TIMES" INTERVIEWS RETIRING KMT CHAIRMAN 
LIEN CHAN ON ARMS PROCUREMENT BILL 
 
 
Summary: The centrist, pro-status quo Chinese-language 
"China Times" Wednesday carried an interview with KMT 
Chairman Lien Chan, who has announced he will step down 
from the leadership position he has held for five and a 
half years August 19.  In the interview, Lien said the 
KMT would accept the U.S. arms procurement bill if the 
amount of money budgeted for the bill were appropriate. 
The U.S. arms procurement bill could be passed during 
the next legislative session, Lien added, if the ruling 
DPP government no longer creates any trouble for the 
KMT. A full-text translation of the article follows. 
 
"[As Long As] the Ruler Does Not Cause Trouble, the 
U.S. Arms Procurement Bill Might Be Passed." 
 
Journalists Chang Jing-wei, Wu Tien-jung, Lo Ru-lan, 
and Hsiao Hsu-tseng wrote on page four of the "China 
Times" [circulation: 600,000] (8/3/05): 
 
In an interview with China Times yesterday, KMT 
Chairman Lien Chan said for the first time that KMT 
would approve the U.S. arms procurement bill if the 
amount of money budgeted for the bill is appropriate. 
Lien added that part of the money designated in the 
bill should be included in Taiwan's annual budget, and 
the rest could be included in a special budget.  Lien 
stressed that "as long as the DPP government does not 
cause any trouble," the U.S. arms procurement bill 
might be passed in the next legislative session. 
 
Lien said the U.S. arms procurement bill proposed by 
the [Chen Shui-] Bian administration had already been 
proposed by the KMT while the KMT was the ruling party 
[of Taiwan].  Lien said, "We do not oppose the U.S. 
arms procurements.  It is absurd for someone to claim 
we oppose [the bill], and even 33 members of the U.S. 
House of Representatives were mobilized to write to 
us."  Lien said, frankly, before stepping down from his 
current post, that part of the reason for the 
obstruction of the U.S. arms procurements stems from 
the interaction between the government and the 
opposition party [i.e. the KMT]. 
 
Lien said whenever the KMT planned to discuss the U.S. 
arms procurement bill, the ruler created trouble, 
[although Lien does] not know whether the ruler has 
done this intentionally or not.  In April 2005, when 
the KMT wanted to take action, the [DPP] government 
said it would press charges against KMT Vice Chairman 
P.K. Chiang for visiting China, and hence negotiations 
between the ruling party and the opposition parties in 
the Legislative Yuan "were out of question."  "Why did 
[the DPP government] want to press charges against 
Chiang at that critical moment?  Why has the government 
not done it so far?"  Moreover, [Lien added,] the 
government said before the legislative elections that 
it wanted to change the KMT's party emblem, and claimed 
that the KMT had conducted a "soft coup."  "Could we 
approve the bill under those circumstances?" [Lien 
asked.] 
 
Lien also questioned the [Chen Shui-] Bian 
administration for failing to actively push for the 
passage of the U.S. arms procurement bill.  He said 
appropriate defensive capabilities are necessary, and 
added when the KMT was in power, its policy was to 
establish appropriate defensive capabilities.  But 
there have been several problems with the current U.S. 
arms procurement deal:  U.S. President George W. Bush 
agreed to sell weapons in a large quantity to Taiwan in 
April 2001, but the DPP government has delayed it for 
three years without taking any action and has proposed 
a budget as late as seven days before the start of the 
legislative recess in early 2003; plus, the budget 
increased from NT$280 billion to NT$480 billion, and 
the government has not offered any explanation for why 
it is so. 
 
Lien said the Legislative Yuan certainly could not have 
handled this bill seven days before its recess.  The 
[Taiwan] presidential election came after that, and the 
government proposed another bill of NT$680 billion 
[edit: figure two years ago was actually NT$610.8 
billion] afterwards.  The Taiwan people do not 
understand why, either.  That is why an Anti-U.S. Arms 
Procurement League was formed, but this league has 
nothing to do with the KMT. 
 
Lien stressed that the numbers for U.S. arms 
procurements must be accurate in the future, and added 
that part of the money designated in the bill should be 
included in Taiwan's annual budget, and some could be 
included in a special budget.  By doing so, the budget 
for the U.S. arms procurements will not surpass the 
annual budget's ceiling.  Lien Chan said the U.S. arms 
procurement bill might be passed in the next 
legislative session, but he hopes that the [DPP] 
government will create no more trouble. 
 
PAAL