US embassy cable - 05TAIPEI3967

UNCLAS SECTION 01 OF 03 TAIPEI 003967 
 
SIPDIS 
 
DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - ERIC 
BARBORIAK 
DEPARTMENT PASS AIT/WASHINGTON 
 
E.O. 12958: N/A 
TAGS: OPRC, KMDR, KPAO, TW, Cross Strait Politics, Military Issues 
SUBJECT: MEDIA REACTION: U.S. ARMS PROCUREMENTS, U.S.- 
CHINA-TAIWAN RELATIONS 
 
1. Summary: Major Chinese-language Taipei dailies 
centered their coverage September 27 on the suicide of 
a well-known local psychiatrist; the controversy 
sparked by President Chen Shui-bian's proposed "Jung 
Pang" project (to set up a US$250 million fund for 
financing development in Central America); the 
filibustering expected in the Legislative Yuan session 
today during the scheduled vote on the National 
Communications Committee bill and the Cross-Strait 
Peace Promotion bill; and independent Legislator Li 
Ao's speech delivered at Fudan University in Shanghai. 
All the Chinese-language newspapers ran a full-page 
advertisement placed by the Government Information 
Office which urgently requested that KMT Chairman Ma 
Ying-jeou revise the KMT version of the present 
National Communications Commission bill.  In terms of 
the U.S. arms procurement bill, almost all Chinese- 
language dailies carried in their inside pages news 
stories on Taiwan's Minister of National Defense Lee 
Jye's remarks that he hopes that the opposition parties 
will "stop at an appropriate point" their blocking of 
the U.S. arms procurement bill. 
 
2. In terms of editorials and commentaries, a 
commentary in the pro-unification "United Daily News" 
commented on the blocked U.S. arms procurement bill, 
saying President Chen should not blame the pan-Blue 
camp for the blocked deal but should be angry with the 
United States for selling Taiwan weapons without really 
treating Taiwan as a "nation."  An editorial in the 
limited-circulation, conservative, pro-unification, 
English-language "China Post," however, urged 
Washington to put the arms deal on hold instead of 
pressing for its passage because Taiwan should 
"befriend" China rather than confront it with military 
procurements.  An editorial in the limited-circulation, 
pro-independence, English-language "Taiwan News" 
discussed U.S. President George W. Bush's turning down 
Chinese President Hu Jintao's recent proposal that 
Washington "co-manage the Taiwan Strait" with China. 
The article said "for all his lack of knowledge and 
appreciation for the complexities of global politics, 
Bush does understand that the real threat to peace and 
stability across the Taiwan Strait comes from the PRC 
itself."  End summary. 
 
1. U.S. Arms Procurements 
 
A) "Who Has the Right to Feel Angry about the [U.S.] 
Arms Procurements [Situation]?" 
 
Journalist Ting Wan-ming said in the "United Notes" 
column in the conservative, pro-unification "United 
Daily News" [circulation: 400,000] (9/27): 
 
". Of course Chen Shui-bian has the right to be angry 
about the procrastination-hobbled U.S. arms procurement 
bill.  But what A-bian should really be angry about is 
the fact that the United States treats Taiwan as a 
generous spendthrift, selling us those weapons with 
price tags twice or three times more expensive than 
those found in the international market, making it 
almost impossible for Taiwan to afford them.  He should 
be angry that Taiwan has no idea at all about what the 
submarines it wants to buy will look like whereas 
Washington is asking for an outrageous price for them. 
He should also be angry that Uncle Sam treats Taiwan as 
a `garbage recycling bin' by forcefully selling us 
second-hand anti-submarine aircraft and while telling 
us that they are new. 
 
"A-bian should fume all the more about the fact that 
Taiwan is defending U.S. strategic interests in the 
Asia-Pacific region for Washington, while Uncle Sam is 
unappreciative and said that the United States `cannot 
help defend Taiwan' if Taiwan does not defend itself. 
President Chen stopped over in the States, but he was 
treated as if he were `contained' by the U.S. 
government.  He received a `Human Rights Award' from 
the right-wing U.S. congressmen, but nonetheless, he 
had to lay low and act submissive. 
 
"A-bian should not blame the pan-Blue camp but should 
blame the United States for selling us `used' weapons, 
taking advantage of Taiwan for money, and promoting the 
sale of armaments to Taiwan but refusing to treat the 
island as a `nation.'  The arms procurements list 
created by the Americans is full of unreasonable price 
tags and weaponry items, but A-bian not only dares not 
to say a word to the United States; instead, he is 
blaming some people in Taiwan. ." 
 
B) "U.S. Ignoring Taiwan Vote?" 
 
The conservative, pro-unification "China Post" 
[circulation: 30,000] editorialized (9/27): 
 
". While the Chen administration has slashed the arms 
budget from the original US$18 billion to US$15 billion 
and finally to US$11 billion, the legislature's 
approval of it would be tantamount to overrule and 
betrayal of the people's decision.  In a civil society, 
another referendum is required to overturn the result 
of a previous one.  It is doubtful that either the Chen 
administration, the opposition, or the U.S., is ready 
for that. . 
 
"Since Taiwan's democratic transfer of power from an 
anti-independence government to an anti-China one, the 
island's strategic status has drastically changed, from 
being an unsinkable anti-communist aircraft-carrier to 
an anti-China frontline provocateur.  The island would 
be the first casualty in a China-U.S. war. 
 
"Taiwan's best way out is befriend the giant neighbor, 
not confront it militarily.  This is also the best 
policy for the world's sole superpower to cope with a 
potential competitor.  Supporting Taiwan independence 
is the only cause that could prompt China to wage war. 
 
"Washington should put the arms deal on hold instead of 
pressing it through." 
 
2. U.S.-China-Taiwan Relations 
 
"Chen's PRC Gambit Echoes U.S. Stance" 
 
The pro-independence, English-language "Taiwan News" 
[circulation: 20,000] editorialized (9/27): 
 
"The announcement by President Chen Shui-bian in Miami 
September 22 that he was willing to hold `rational 
dialogue' with People's Republic of China State 
Chairman Hu Jintao `without any preconditions' 
signified another in a series of goodwill gestures by 
the Democratic Progressive Party administration. 
 
"With this announcement, the president set aside his 
previous insistence that a Chen-Hu meeting should take 
place in the PRC itself, but, as noted by U.S. 
officials, the phrase `no preconditions' also indicates 
that both sides, including Beijing's Chinese Communist 
Party regime, should not set preconditions. 
 
"Hence, President Chen also signaled clearly that his 
DPP administration would not accept the PRC regime's 
precondition that the Taiwan government must accept 
Beijing's `one-China' principle, which defines Taiwan 
as part of `China,' before any official cross-strait 
talks can take place. . 
 
"Preoccupied with the physical disaster of Hurricane 
Katrina and the severe political damage caused by the 
poor performance of the federal government in disaster 
response and relief, Bush paid relatively little 
attention to the summit with Hu.  . Hu also inserted a 
stunning proposal for Washington to `join the Chinese 
side in safeguarding peace and stability across the 
Taiwan Strait, and opposing so-called Taiwan 
independence.'  Despite the shower of apparent goodwill 
gestures by the PRC state chairman, Bush did not 
directly reply to Hu's proposal for `co-management' of 
the Taiwan Strait. . 
 
"The reason for Bush's reluctance to endorse Hu's `co- 
management' proposal was quite clear.  For all his lack 
of knowledge and appreciation for the complexities of 
global politics, Bush does understand that the real 
threat to peace and stability across the Taiwan Strait 
comes from the PRC itself. . 
 
". [T]he notion floated by Hu of the so-called `co- 
management' of the Taiwan Strait by the U.S. and China 
was extremely unrealistic and received the treatment it 
deserved.  Bush simply ignored it.  Instead, Bush 
directly told Hu that Beijing should not bypass 
Taiwan's governing Democratic Progressive Party and 
only engage in talks with the opposition pan-blue camp. 
Bush's repeated calls on Hu to open talks with Taiwan's 
democratically elected government confirms that the 
relationship between Taiwan and the U.S. has improved 
considerably since the tensions before the March 2004 
presidential election. ." 
 
KEEGAN