US embassy cable - 05TAIPEI3615

UNCLAS TAIPEI 003615 
 
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 
SUBJECT: MEDIA REACTION: U.S.-CHINA RELATIONS 
 
 
1. Summary: Major Chinese-language Taipei dailies 
focused their coverage August 31 on local politics and 
warnings about the approach of Typhoon Talim, which 
will very likely hit Taiwan Wednesday evening.  The pro- 
unification "United Daily News," nonetheless, ran a 
banner headline on its front page that quoted Mainland 
Affairs Council Chairman Joseph Wu as saying: "Charter 
planes can fly directly from Taichung to Hong Kong and 
Macao."  In addition, all the Chinese-language 
newspapers in Taiwan reported in their inside pages 
Taiwan National Defense Minister Lee Jye's remarks that 
his ministry has reduced the special budget for U.S. 
arms procurements from NT$610.8 billion to NT$340 
billion in the interest of political harmony.  The 
centrist "China Times" carried a news story noting that 
the U.S. government did not send "faxes" to Minister 
Lee directly to express concerns about the passage of 
the U.S. arms procurement bill.  Instead, the news 
story said it was TECRO Chief David Lee who passed the 
U.S. messages to Lee regarding the U.S. concerns when 
he returned to Taipei recently. 
 
Almost all the Chinese-language newspapers also 
reported in their inside pages the upcoming visit to 
Washington, DC, by Chinese President Hu Jintao.  The 
newspapers quoted China's Ministry of Foreign Affairs 
Department of North American and Oceanian Affairs 
Director-General He Yafei as saying the leaders of both 
countries would definitely discuss the Taiwan issue. 
 
2. In terms of editorials, several newspapers discussed 
the "toadying culture" in the Taiwan government that is 
aimed at currying favor with President Chen Shui-bian. 
An editorial in the limited-circulation, conservative, 
pro-unification, English-language "China Post," 
however, commented on Chinese President Hu Jintao's 
U.S. visit and the issues Hu and U.S. President George 
W. Bush will talk about when they meet.  The editorial 
said it will be very difficult for Bush and Hu to reach 
consensuses on sensitive issues unless Washington is 
willing to take into account China's positions and not 
just consider things from its own perspective.  End 
summary. 
 
"U.S. Needs a PRC Perspective" 
 
The conservative, pro-unification, English-language 
"China Post" [circulation: 30,000] noted in an 
editorial (8/31): 
 
"Trade and investment are expected to stand out 
prominently in the summit meeting between U.S. 
President George W. Bush and his Chinese counterpart Hu 
Jintao, who is scheduled to arrive in Washington on 
September 7.  But it will be very difficult for the two 
leaders to reach consensuses on these and other 
sensitive bilateral issues, unless the U.S. side is 
more willing to take into account China's positions, 
not just considering things from its won perspective. 
 
"Washington always likes to blame Beijing for its 
persistent massive trade deficits with China.  But 
China's unfair trade practices, including a still 
undervalued currency, have been only partially to 
blame.  The many tens of thousands of American firms, 
which flocked to the mainland in recent years to take 
advantage of cheap labor and ship their productions 
back to the U.S., apparently have contributed to the 
trade imbalances. 
 
"The U.S. could have significantly reduced its deficits 
by boosting its sales to China by removing its tight 
restrictions placed on exports of high-technology goods 
and services.  Washington tended to cite security 
considerations.  But Beijing differs, criticizing the 
U.S. policy as the practice of protectionism aimed at 
curbing China's rise economically.  Over the years, 
Washington has never relaxed its campaign to force 
China to open wider its market for U.S. investment. 
But the irony is that the U.S. does not seem to be 
willing to reciprocate Chinese liberal measures by 
opening up its own markets when it comes to areas it 
sees as strategically important. ." 
 
KEEGAN