US embassy cable - 05TAIPEI3612

UNCLAS SECTION 01 OF 02 TAIPEI 003612 
 
SIPDIS 
 
SENSITIVE 
 
DEPT PASS AIT/WASHINGTON 
 
DEPT FOR EAP/RSP/TC, INR/EAP, EAP/PD 
 
FROM AIT KAOHSIUNG BRANCH OFFICE 
 
E.O. 12958: N/A 
TAGS: PGOV, KMDR, TW, Domestic Politics 
SUBJECT: Underground Radio Stations 
 
 
1.  Summary. In October 2004, the Taiwan Government 
Information Office announced that a new radio frequency 
reallocation policy would come into effect to legalize 
underground radio stations.  Although the policy has been in 
effect for almost a year, underground radio stations that 
applied for a broadcasting license have not seen any change 
in their legal status.  Because many underground radio 
stations are partial to certain political parties, an AIT 
contact attributes the lack of change to the desire of the 
new director of the Government Information Office, Yao Wen- 
chi, not to interfere with the year-end elections.  The 
reallocation policy is, however, expected to move forward 
after the elections have taken place. End Summary. 
 
2.  A little more than a year ago, the Taiwan Government 
Information Office announced plans for a new radio frequency 
reallocation policy. This policy would enable some 200 
underground radio stations in Taiwan to apply for licenses 
to become legalized. Only about one-third of all underground 
radio stations took advantage of the policy, whereas two- 
thirds of the stations chose to remain underground. Free 
from any governmental regulations, it is more advantageous 
for the stations to remain underground. The advantages 
include: freedom of broadcast content, no limitations on the 
amount or type of advertising, and no need to pay royalties 
or fees for songs broadcast. Neither legal nor underground 
radio stations need to pay taxes. 
 
3.  AIT/K discussed the new radio frequency policy with Boss 
Radio Station Manager Huang Dong-rong.  Boss Radio Station, 
which originated in Kaohsiung as an underground radio 
station, received its license six years ago.  Huang 
explained to AIT/K that the new policy would not eradicate 
underground radio stations in Taiwan because stations are 
able to occupy any frequency available. Huang said legal 
radio stations would face more competition from newly 
legalized players in the business.  According to Huang, 
legal radio stations rely heavily on income from 
advertising, organizing public events for government 
agencies, and selling time slots.  Huang bemoaned that legal 
radio stations do not receive financial support from 
government authorities.  Further, to be eligible to renew 
broadcasting licenses, the government forces legal radio 
stations to abide by regulations and requires them to 
produce programs that advocate government policies. 
 
4.  Huang also complained about the lack of law enforcement 
on underground radio stations.  He stated that underground 
radio stations had collaborated with corrupt government 
officials to ensure protection for their businesses.  Huang 
also pointed out that some are owned by organized crime 
syndicates.  He had received threats from gangsters after he 
filed complaints about underground radio stations. 
 
5. Comment. Introduction of the October 2004 policy was 
widely seen as a reward for the pro-green underground radio 
stations for their continuous broadcast of the March 19, 
2004, shooting of then presidential candidate and current 
President Chen Shui-bian right before the election, which 
aroused voters' sympathy.  However, the reward has not yet 
panned out as the path towards receiving a license to 
broadcast has not become easier for either pro-KMT nor pro- 
DPP underground radio stations. The former director of the 
Government Information Office, Lin Chia-long, who initiated 
the policy in 2004, resigned to concentrate on his campaign 
in the Taichung mayoral election and has since been replaced 
with a new director, Yao Wen-chi. Boss Radio Station Manager 
Huang Dong-rong indicated that the new director may have 
halted the issuing of licenses in order to prevent the 
policy from interfering with the 2005 elections, which will 
take place at the end of the year. After the election takes 
place, the policy should take effect. 
 
(Prepared by AIT/K Intern Cindy Chou) 
 
End comment. 
 
 
 
Thiele 
 
Paal