US embassy cable - 05TAIPEI3962

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 003962 
 
SIPDIS 
 
STATE PASS AIT/W 
 
E.O. 12958: DECL: 09/26/2015 
TAGS: PGOV, PREL, TW, Foreign Policy, Domestic Politics, Military Issues 
SUBJECT: SEPTEMBER 25 RALLIES FOR AND AGAINST DEFENSE 
PROCUREMENT SPECIAL BUDGET 
 
REF: TAIPEI 3947 
 
Classified By: AIT Acting Director David J. Keegan, Reason(s): 1.4 (B/D 
) 
 
1.  (C) On Sunday, September 25, 20,000-40,000 people marched 
in support of the USD 11.6 million Defense Procurement 
Special Budget.  The march and rally following were organized 
by the "Hand-in-Hand to Protect Taiwan Grand Alliance," the 
ruling Democratic Progressive Party (DPP), and several 
pro-Taiwan independence groups.  At the same time, some 200 
protestors opposing the Special Budget held a sit-in in front 
of the Legislative Yuan (LY) proclaiming the US arms deal 
would fuel an arms race with China.  Some members from the 
two groups traded harsh words, but there was no violence. 
 
2.  (C) March organizer Huang Chao-tang, Chairman of World 
United Formosans for Independence (WUFI), told the crowd that 
the march showed the world that the people of Taiwan would 
not be bullied by China and are determined to defend Taiwan's 
independent sovereign status.  Former President Lee Teng-hui 
and Vice President Annette Lu did not participate in the 
parade or give their announced speeches at the rally on 
Ketagalan Boulevard in front of the Presidential Palace 
following the march, Lee reportedly because of back problems. 
 A few government officials participated in the Sunday 
events, including Examination Yuan President Yao Chia-wen 
(see reftel), Council of Labor Affairs Minister Lee 
Ying-yuan, and National Policy Adviser Wu Shu-ming.  Speaking 
on behalf of a contingent of several thousand DPP supporters 
at the rally, DPP Legislator Trong Chai charged that the 
opposition parties are selling out Taiwan to China by 
boycotting the arms procurement package in the LY Procedure 
Committee.  DPP elder Shen Fu-hsiung told AIT that a large 
number of Taiwanese from abroad attended the rally, many 
former WUFI comrades from Shen's twenty years in the U.S. 
(Shen was a U.S. citizen and M.D. before returning to Taiwan 
in 1986 to take up the DPP independence cause).  Unlike Shen 
himself, however, who said he had moderated his views over 
the ensuing two decades in order to deal with the "reality" 
of Taiwan Blue-Green politics and cross-Strait situation, the 
overseas Taiwanese had not changed and still lived in the 
rarified world of overseas Taiwanese politics, meaning total 
commitment to independence. 
 
3.  (C) In a television interview, Premier Frank Hsieh 
charged that the opposition parities are trying to weaken 
Taiwan by boycotting the government's defense budget, and he 
warned that the majority in the LY may sell Taiwan out to 
China.  (Comment:  The fact that Hsieh made this accusation 
on a "pro-Green," or independence-leaning, station suggests 
he was seeking to encourage the faithful of government 
support rather than to speak to the Blue opposition.  End 
Comment.)  Meeting with Taiwan reporters during his visit to 
the Dominican Republic on September 25, President Chen 
Shui-bian criticized the opposition parties for boycotting 
the package.  Chen pointed to opposition People First Party 
(PFP) Chairman James Soong as the main obstacle blocking the 
package from being reviewed on the legislative floor.  PFP 
Vice Chairman Chang Chao-hsiung clailmed to reporters that 
KMT Chairman Ma Ying-jeou has softened his stance and is 
trying to persuade PFP lawmakers to agree to at least move 
the arms procurement package to the LY floor for formal 
discussion.  Chang threatened to discipline any PFP member 
who supports this effort.  KMT Policy Committee Executive 
Director Tseng Yung-chuan and Legislator Su Chi publicly 
denied Chang's allegations, insisting the KMT has not decided 
whether to support the arms package.  However, Su added, the 
KMT definitely will not support procurement of PAC-III 
missiles because they had been "vetoed" by voters in a March 
2004 referendum.  Chairman Ma echoed the referendum argument 
to the media, adding that it is President Chen and the DPP 
that do not attach importance to the arms procurement project 
as evidenced by the three years that passed between President 
Bush's approval of the Special Budget package and the DPP 
government's submission of the bill to the LY. 
 
4.  (C) Comment.  The September 25 pro-Defense Special Budget 
march and rally, along with the smaller opposition 
demonstration, appear only to have further politicized the 
Special Budget issue.  Support for and opposition to the 
Defense Special Budget has already become a political 
shibboleth defining Green-Blue opposition.  Saturday's 
rallies make this polar opposition even more difficult to 
overcome.  The only signs to date of possible breaks in the 
legislative logjam are various statements by KMT leaders, 
including Chairman Ma LY Speaker Wang Jin-pyng, that they 
might be willing to support moving the Special Budget on to 
the LY floor for discussion.  This, however, would constitute 
only a first step in the legislative process with no hint of 
further support, and with several LY pressure points at which 
any dissenting political party could put an automatic 
four-month hold on further deliberation, bringing the LY into 
its Spring session.  End Comment. 
KEEGAN