US embassy cable - 05TAIPEI4006

UNCLAS SECTION 01 OF 02 TAIPEI 004006 
 
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 
SUBJECT: MEDIA REACTION: U.S.-CHINA-TAIWAN RELATIONS 
 
 
1. Summary: Major Chinese-language Taipei dailies gave 
extensive coverage September 29 on alleged shady 
recruitment practices related to the hiring of Thai 
workers for the construction of the Kaohsiung mass 
rapid transit system; an extortion scandal linked to a 
local TV star; and the possible dioxin contamination of 
ducks in central Taiwan.  Almost all the newspapers 
also reported in their inside pages about a Cabinet 
decision allowing banks in Kinmen and Matsu to exchange 
New Taiwan Dollars for Renminbi, and vice versa, 
beginning October 3.  The pro-unification "United Daily 
News" ran an exclusive news story on its front page 
saying former Taiwan Financial Supervisory Commission 
Examination Bureau Director-General Lee Chin-cheng, who 
was allegedly involved in illegal stock market insider 
trading and judicial scandals, went to AIT Monday and 
was approved for an immigrant visa. 
 
In addition, several Chinese-language newspapers 
carried news stories on remarks made by President Chen 
Shui-bian in St. Kitts and Nevis that Taiwan political 
heavyweights, including former KMT Chairman Lien Chan, 
incumbent KMT Chairman Ma Ying-jeou, PFP Chairman James 
Soong, and Legislative Yuan President Wang Jin-pyng, 
are all aware that the U.S. arms procurement bill will 
be passed eventually.  The centrist "China Times" ran a 
news story in its inside page quoting Chen as saying 
that it was due to the United States' strategic concern 
that it arranged Chinese President Hu Jintao to visit 
the United States before Chen made his transits. 
 
2. In terms of editorials and commentaries, a "United 
Daily News" commentary discussed the recent testimony 
by U.S. Department of State East Asian Bureau Senior 
Advisor James Keith before the U.S.-China Economic and 
Safety Review Commission.  The article said Keith's 
unusual revelation of a closed-door conversation 
between President Chen and PFP Chairman James Soong 
appeared to be meant as a reminder to Chen not to break 
his word.  End summary 
 
A) "James Keith's Testimony and Reminding" 
 
Journalist Lo Chia-wen said in the "United Notes" 
column of the conservative, pro-unification "United 
Daily News" [circulation: 400,000] (9/29): 
 
"U.S. Department of State East Asian Bureau Senior 
Advisor James Keith recently testified before the U.S.- 
China Economic and Safety Review Commission that PFP 
Chairman James Soong, when calling on Chinese President 
Hu Jintao in May, passed on the message to Hu that 
President Chen Shui-bian was willing to engage in 
dialogue with Beijing, using a flexible formulation 
about what constitutes `one China.'  Even though Keith 
remarks were immediately denied by the Presidential 
Office and the PFP, the State Department official still 
claimed that Keith's testimony was correct. . 
 
"In fact, a flexible definition of the `one China' is 
the position President Chen has been taking when it 
comes to resuming cross-Strait dialogue.  Even though 
Chen refuses to accept terms such as `the 1992 
Consensus,' `one China with different interpretations,' 
and `one China under the Constitution,' his remarks 
that he is willing to  promote cross-Strait talks using 
the results reached during the Hong Kong talks in 1992 
as a basis still imply the attempt to deal with one 
China in a flexible manner.  Judged from this context, 
one could also reach the conclusion that `Keith's 
testimony is correct.' 
 
"During his testimony, Keith encouraged Beijing to 
start a dialogue with the Taiwan government.  He also 
revealed the contents of the message Chen asked Soong 
to relay to Hu four months ago, a move that seemed to 
imply that the Taiwan government should also be held 
responsible for `not taking any action' [to resolve the 
impasse across the Taiwan Strait]. . 
 
"The normalization of cross-Strait relations and a 
tailor-made Constitution [for Taiwan] are the 
historical tasks Chen intends to accomplish.  But what 
happened during the past few months indicated that Chen 
has deviated from his [previous] consideration and 
planned to stake everything on a singe cast of the 
dice.  Keith's unusual revelation of the closed-door 
conversation between Chen and Soong seemed to be 
reminding Chen not to break his word." 
 
KEEGAN