US embassy cable - 05TAIPEI3496

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 003496 
 
SIPDIS 
 
STATE PASS AIT/W 
 
E.O. 12958: DECL: 08/22/2015 
TAGS: PGOV, TW, Domestic Politics 
SUBJECT: MA TAKES THE REINS 
 
REF: A. TAIPEI 3450 
 
     B. TAIPEI 3467 
 
Classified By: AIT Acting Director David J. Keegan, Reason(s): 1.4 (B/D 
). 
 
1. (U) Summary:  On August 18, Ma Ying-jeou was sworn in as 
the Chairman of the KMT.  His predecessor, Lien Chan, was 
designated as "Honorary Chairman."  The National Congress 
approved a measure allowing its 1,600 members to directly 
elect the members of the Central Standing Committee (CSC). 
The CSC direct elections were marked by balloting errors and 
poor organization, but no one has challenged the results:  a 
CSC largely balanced by representatives from both the Ma and 
Wang factions.  Ma promised to clean up the party's finances, 
further democratize party decision-making, expand the party's 
base, and advance Pan-Blue unity, all with an eye toward 
taking back the presidency in 2008. End Summary. 
 
2. (U) During his August 19 Chairman's acceptance speech, Ma 
promised to set up a timetable to dispose of all of the KMT's 
problem assets, including the disputed Central Headquarters 
building, by the end of 2008.  Ma argued that since the KMT's 
assets played a key role in Taiwan's development, the term 
"ill-gotten gains" was not appropriate.  Ma said addressing 
property-related disputes was essential to restoring the 
KMT's image as a plain and honest party.  Revenue from the 
sale of disputed assets would be allocated to meet 
obligations to KMT pensioners.  Ma also called for gradually 
integrating the PFP and New Party into the KMT, starting with 
cooperation over policy, legislation, and elections.  Ma 
expressed hope that the KMT would be able to improve its 
grassroots connections by convening the Central Standing 
Committee in different cities around Taiwan, and allowing 
Central Committee members and local party representatives to 
sit in on CSC meetings.  Ma thanked former opponent Wang 
Jin-Pyng for conducting a "gentleman's race" for Chair. 
Receiving the title of "Honorary Chairman," outgoing Chairman 
Lien Chan praised Ma as a young and intelligent politician, 
and urged him to prepare the KMT for the 2008 presidential 
race.  Ma promised to "follow Lien's line," and to be an 
"openminded visionary" dedicated to turning the KMT into a 
clean party that could take back power in 2008. 
 
3. (U) During the first day of the two-day National Congress, 
delegates approved a measure granting the National Congress 
the power to directly elect the members of the Central 
Standing Committee (CSC), the party's chief policy-making 
organ.  Delegates also voted to strike from the rules a 
provision barring disciplined or expelled members from 
running for Chairman or the Central Standing Committee.  A 
measure to extend the term of Central Standing Committee 
members from one year to two was rejected, as was a proposal 
to give student and grassroots leaders voting participation 
in CSC meetings.  On the whole, delegates overwhelmingly 
voted as Ma had urged, against pressure from Wang Jin-pyng's 
camp.  The National Congress also approved Ma Ying-jeou's 
candidates for four of the Vice-Chair seats: incumbents 
Chiang Pin-kun, Lin Cheng-chi, and Wu Po-hsiung, who stayed 
in place at Ma's personal request.  John Kuan (Kuan Chung) 
will fill the fourth position.  Ma has said he would like to 
reserve the fifth Vice-Chair position for someone from the 
KMT Youth Corps.  (Note:  Taipei 3450 misidentified Chang 
Chang-pang and Tseng Yung-chuan as incumbent Vice-Chairmen. 
Chang Chang-pang is KMT Deputy Secretary General and Tseng 
Yung-Chuan is KMT Policy Director.  Both men stayed in their 
respective posts at Ma's request.) 
 
4. (U) The first direct election of the CSC was plagued by 
balloting errors and unclear voting procedures.  The vote 
took place only one day after it was decided to hold the 
direct ballot, and seven hours after the results of the 
Central Committee election were announced.  In the rush to 
prepare the ballots, the names of three candidates were 
omitted.  Delegates complained that it was difficult to find 
the polling places inside the convention center, and that 
polling areas were crowded by campaigners and press.  Ma 
himself became angry with the press attending the event, 
saying they should take some of the blame for causing the 
chaos which surrounded the CSC election. 
 
5. (U) Of the 31 members of the new CSC, 19 are Legislative 
Yuan (LY) members, four more than in the previous CSC. 
Eleven of the members of the new CSC are considered to be 
"pro-Wang" based on public statements made during the KMT 
Chairman race: LY members Hung Hsiu-chu, Tseng Yung-chuan, 
Huang Chao-shun, Lin I-shih, John H. Chiang, Lee Chuan-chiao, 
Hung Yu-chin, Hou Tsai-feng, Chu Feng-chih, former LY member 
Yang Chi-hsiung, and former Economics Minister Wang Chi-kang. 
 Ten members are considered "pro-Ma":  LY members Lu 
Hsiu-yuen, Wu Yu-sheng, Lai Shi-bao, Chang Jen-hsiang, Ting 
Shou-chung, Chou Shou-shun, Taichung City Mayor Jason Hu, 
Taipei City Councilwoman Lin I-hua, former National Assembly 
speaker Chen Chin-jang, and former Deputy Taipei City Mayor 
Ou Chin-te.  The ten remaining members of the new CSC haven't 
made their preference known:  LY members Lee Chi-chu, Hsu 
Chung-hsiung, and Tsai Cheng-yuan, Chiang Fang Chih-I 
(daughter of late president Chiang Ching-kuo), Prince Motors 
Group President Hsu Hsien-jung, China Trust Group Chairman 
Jeffrey Koo, Lien Sheng-wen (son of former Chairman Lien 
Chan), Rebar Group Chairman Wang You-tseng, Weiching 
Consortium founder Shen Ching-chin, and incumbent Central 
Standing Committee member Yao Chiang-lin.  A list of 28 
candidates allegedly favored by Ma was circulated in advance 
of the CSC election, angering supporters of LY Speaker Wang. 
KMT Secretary General Chan Chun-po and members of Ma's staff 
denied any responsibility for the list.  Only 15 of those 28 
candidates were actually elected to the CSC. 
 
6. (U) In remarks during the final day of the National 
Congress, Ma strongly objected to characterizations of the 
KMT as an "alien regime."  In a speech before the party's 
Central Advisory Committee, Ma declared that Sun Yat-sen, the 
founding father of the ROC, visited Taiwan several times 
before the ROC's birth in 1911.  Ma cried openly while 
recounting a meeting earlier this year with relatives of 
democracy activist Liao Chin-ping.  In 1913, Liao donated 
funds to Sun Yat-sen, and in thanks, Sun gave Liao a bottle 
of Scotch whiskey.  Liao was later killed during the KMT-led 
crackdown of February 28, 1947.  At a ceremony this year 
marking the 2-28 Incident, Liao's son presented the liquor to 
Ma, in honor of his father's friendship with Sun.  A tearful 
Ma said "those who claimed that Kuomintang is an alien regime 
are just ignorant of the history."  Pan-Green politicians 
countered that Ma was attempting to ignore the KMT's bloody 
history on Taiwan. 
 
7. (U)  According to an Apple Daily public opinion poll 
conducted August 19, 74 percent of eligible voters would vote 
for Ma as President in 2008, and 72 percent would vote for 
KMT candidates in the year-end county/city chief elections. 
In another August 19 poll conducted by the China Times, 46 
percent of island-wide respondents believed Ma could defeat 
the DPP candidate in 2008, while 18 percent said he could 
not.  The China Times respondents were also asked to indicate 
whether they were "satisfied" or "dissatisfied" with the 
performance of the various political parties.  The KMT led 
the pack, with a 40 to 37 percent satisfied/dissatisfied 
result.  The DPP fared slightly worse, with a 37 percent 
satisfied/37 percent dissatisfied rating.  Only 21 percent of 
respondents were satisfied with the TSU, with 43 percent not 
satisfied.  The PFP, with only 18 percent satisfied versus 51 
percent not satisfied, took last place.  This marks a 
substantial decline from the PFP's 32 percent approval rating 
following James Soong's trip to the PRC. 
 
8. (C) Comment:  Despite some expectations that Wang Jin-pyng 
might use the KMT National Congress to use his organizational 
strength to put limits on Ma, the National Congress proved 
another victory for Ma.  By pushing through the direct 
election of the Central Standing Committee, Ma strengthened 
his position by forcing CSC policymakers to become more 
responsive to the grassroots base which supported Ma 
three-to-one against Wang.  With CSC members' terms limited 
to one year, members have a reason to cooperate with Ma in 
anticipation of next year's election.  On the other hand, 19 
CSC members, as members of the LY, are used to taking orders 
from Legislative Speaker Wang Jin-pyng, but it remains to be 
seen whether Wang has the strength to challenge Ma a third 
time.  End Comment. 
KEEGAN