US embassy cable - 05TAIPEI4189

S E C R E T SECTION 01 OF 03 TAIPEI 004189 
 
SIPDIS 
 
STATE PASS AIT/W 
 
E.O. 12958: DECL: 10/14/2015 
TAGS: PGOV, TW 
SUBJECT: "NEW DPP MOVEMENT":  TRYING TO REGAIN THE HIGH 
GROUND ON CLEAN GOVERNMENT 
 
 
Classified By: AIT Director Douglas Paal, Reason(s): 1.4 (B/D) 
 
1.  (C) Summary: Tuan Yi-kang, convener of the Democratic 
Progressive Party (DPP) New Tide Faction, told AIT that he 
created the "New DPP Movement" to help Luo Wen-jia, the 
Democratic Progressive Party (DPP) candidate for Taipei 
County Magistrate, win election on December 3 by burnishing 
Luo's reformist credentials and distancing him from perceived 
DPP corruption.  The broader goal of the reform initiative is 
to press the DPP to return to its original anti-corruption 
and clean government mission.  Tuan said the DPP's failure to 
deliver on reform pledges has resulted in a loss of public 
trust.  Therefore, Tuan stressed, the DPP's top priority must 
be to restore its credibility.  Tuan expressed disappointment 
that President Chen Shui-bian had attacked the opposition 
rather than accepting responsibility for Government problems 
in his October 10 National Day speech.  Chen's October 13 
meeting with DPP leaders and candidates dramatically revealed 
the chaos that corruption charges have produced in the party. 
 Chen's challenge will be to take real steps to reform the 
party while resisting the temptation to lapse into his 
accustomed attack mode.  End Summary. 
2.  (C) On October 11, Tuan Yi-kang, convener of the 
Democratic Progressive Party's New Tide Faction (called "The 
Movement" in English) and former DPP legislator, briefed AIT 
on the "New DPP Movement" that he and Luo Wen-jia, DPP 
candidate for Taipei County magistrate, launched on October 
1.  The goal of the New DPP Movement, Tuan explained, is to 
press the party to return to its original mission of 
anti-corruption, reform, and clean government.  Public trust 
in the party has declined because the DPP has not delivered 
on its reform pledges since coming into power in 2000.  The 
New DPP Movement, which was not vetted or approved by the 
party, has no organization and is being planned and run by 
just three individuals: Tuan, Luo, and DPP Legislator Lee 
Wen-chung.  Initial results have been positive, Tuan said, 
with 74 of 89 DPP legislators endorsing the movement.  The 
movement also enjoys wide support among party members in 
central Taiwan, according to DPP International Affairs 
Advisory Counselor Liu Shyh-fang, who participated in AIT's 
meeting with Tuan and had just returned from central Taiwan. 
Tuan noted that he does not intend to continue using the term 
"New DPP Movement" for his campaign for party reform.  "New 
DPP Movement" is a name designed to use in "fighting," he 
said. 
 
Origins of the New DPP Movement 
------------------------------- 
 
3.  (C) The idea for the New DPP Movement, Tuan explained, 
developed during discussions he held with Luo about Luo's 
campaign in Taipei County.  Tuan told Luo that current trends 
are running against him and that Luo's problems are likely to 
increase as the December 3 date of the election approaches. 
Although his opponent, Kuomintang (KMT) candidate Chow 
Hsi-wei, is a weak campaigner, the KMT will try to turn the 
election from a contest between individuals into one between 
the KMT and DPP.  Current Taiwan polls indicate that the 
approval rating for the KMT is ten percent higher than that 
for the DPP.  To counter the negative effect of DPP 
unpopularity, Luo will need to maintain a lead of more than 
five percent over Chow to ensure victory, Tuan said.  Luo's 
current lead is less than five percent, however, and Chow 
continues to gain ground.  Luo's particular vulnerability 
stems from his close association with President Chen 
Shui-bian, and so Tuan suggested initiating a reform campaign 
that would distance Luo from the scandals and missteps of the 
DPP Government. 
 
4.  (C) Initial polling indicates that the reform initiative 
has given a modest boost to Luo, Tuan noted, but the effects 
are probably temporary and so more will need to be done. 
That the campaign has met some resistance within the DPP will 
probably help Luo solidify his reform credentials, Tuan 
observed.  Some party members have voiced concern they might 
be singled out as the "old DPP," while worry has also been 
expressed that the campaign will deflate the party's fighting 
spirit on the eve of the December local elections. 
 
5.  (C) Pro-Blue pollster and pundit Emile Sheng offered AIT 
a different perspective on the Taipei County race.  Although 
Luo is the stronger campaigner and better liked by the 
public, Chow has taken the lead within the last several weeks 
according to opinion polls.  Luo's drop can be ascribed 
almost solely to the negative image of the DPP; Chow has 
shown little ability as a campaigner.  Luo's presentation of 
the "New DPP" slogan has not succeeded in protecting him from 
voter distaste for DPP corruption. 
 
The Need to Regain Public Trust 
------------------------------- 
 
6.  (C) Tuan maintained that in the past the DPP has been 
overly focused on winning each election.  To increase support 
from voters, the DPP has bent its principles and not followed 
through on promised reforms.  The result has been a loss of 
credibility with the public.  For example, Tuan cited, the 
DPP backtracked on income tax reforms, agreeing to rebates 
for teachers and members of the armed services as a tactical 
move to win votes.  The DPP has also failed to deliver on a 
pledge to eliminate the positions of highly paid presidential 
advisors who have no responsibilities, Tuan noted.  Restoring 
the people's trust in the DPP must be the party's top 
priority, he stressed.  This priority is much more important 
than winning elections, Tuan added, even the legislative and 
presidential elections in 2007 and 2008. 
 
Criticizing Chen Shui-bian's October 10 Speech 
--------------------------------------------- - 
 
7.  (C) Tuan said he was disappointed with President Chen's 
October 10 address because Chen ducked responsibility for the 
Government's problems, once again attacking the opposition 
over the issue of KMT party assets.  Government leaders 
should reflect, accept responsibility, and apologize to the 
public for Government mistakes, Tuan suggested, and there 
should be cabinet changes under the principle of 
administrative responsibility.  For example, Tuan said he had 
heard of at least one case in which a senior official had 
been indicted with no consequences for his superiors.  He 
said that the unnamed minister should be required to step 
down to take administrative responsibility for the indictment 
of his subordinate.  Because he had been disappointed with 
the Government's response so far, Tuan said, he planned to 
organize a press conference at which Legislative Yuan (LY) 
members would criticize the government over corruption 
issues, including the large bonuses paid to the chairman of 
the State-owned China Steel Corporation (CSC).  In addition, 
Tuan said, he was inviting DPP candidates for county 
magistrates and city mayors to sign a pledge to uphold four 
clean government measures if elected, measures that exceed 
legal requirements and include placing personal assets into a 
trust while in office.  Tuan noted that DPP Chairman Su 
Tseng-chang was making DPP headquarters available for the New 
 
SIPDIS 
DPP Movement's public events.  Su Tseng-chang hosted the 
candidates' signing of a clean government pledge on October 
12 as an official DPP event.  On the same day, several DPP 
and Taiwan Solidarity Union (TSU) legislators held a press 
conference to display a letter signed by 94 legislators that 
demanded China Steel Corporation Chairman and Justice 
Alliance member Lin Wen-yuan turn his bonus over to the 
Government. (NOTE. The bonus was based mostly on last year's 
booming exports to China's construction explosion. END NOTE.) 
 
8.  (C) Tuan said he would monitor Government reaction, 
including Chen's handling of a meeting with DPP local 
election candidates, before deciding whether further measures 
are needed.  Noting that acting Kaohsiung Mayor Yeh Chu-lan 
has been appointed to investigate problems with the Kaohsiung 
rapid transit system project, such as alleged bidding 
irregularities, Tuan said he would wait to see whether the 
investigation is good, whether someone is held 
administratively responsible, and whether public opinion is 
satisfied with the investigation results. 
 
9.  (C) If Tuan was looking for modest self-examination from 
the President's meeting, what he got instead was an amazing 
display of DPP fratricide October 13, or maybe it's just a 
healthy sign of a capacity for self-renewal.  Chen Shui-bian 
used a televised gathering of the DPP elite and candidates at 
the Taipei Guest House to announce, among other things, that 
if scandal touches him he will step down, referring 
specifically to CSC Chairman Lin's bonus. It appears that 
Chen offered himself because he feels safe from proof of a 
connection, but he has set a standard to remove the premier 
or other high ranking officers to expiate himself and try to 
arrest the fall of the DPP's spiraling reputation. 
 
10.  (S) Chen Shui-bian's effort, after the cameras were 
turned off, produced a spirited reaction from the New Tide 
faction, which has been calling for a New DPP to set itself 
apart from those associated with the recent scandals.  The 
president's Justice Faction in turn called for the removal of 
Wu Nai-jen as head of the Taiwan Stock Exchange. The back and 
forth of the debate was widely covered in today's media. 
Presidential Deputy Secretary General James Huang, who 
attended the meeting, told AIT DIR that the party is in a 
true "crisis," and said, smiling wryly, the meeting was an 
example of the spirit of the DPP, with factions slamming each 
other. 
 
DPP Officials Caught by Surprise 
-------------------------------- 
 
11.  (C) Two DPP officials we asked appeared to have been 
surprised by, and not entirely sure what to expect from, the 
New DPP Movement.  Both agreed, however, on the need for 
reform.  Legislator and DPP Director of International Affairs 
Bi-Khim Hsiao suggested to us that the movement, which she 
has endorsed, is a "concept" at this stage.  Tung Li-wen, DPP 
Director of Chinese Affairs, said the idea of reform is good 
and is popular with the people, but some specific proposals 
should be dropped.  He suggested that the party might take up 
the reform agenda after the December 3 elections and that the 
problem now is that voters may be expecting reforms that will 
not happen before the elections. 
 
Comment 
------- 
 
12.  (C) The DPP has been hard hit in recent months by a 
series of widely publicized scandals, corruption allegations, 
and charges of mismanagement.  Its talent for public and 
vicious squabbling has only compounded the damage.  Party 
leaders are concerned that growing popular dissatisfaction 
with the DPP will translate into defeat in local elections on 
December 3 and that the opposition KMT may be able to build 
momentum to retake power in the 2008 presidential election. 
The New DPP Movement adds to the already considerable 
pressure on DPP leaders to address corruption issues, and 
Chen Shui-bian is responding, as he often has in the past, by 
attacking opponents and allies alike.  By themselves, Chen's 
statements seem unlikely to turn public opinion around, and 
so Chen may come to feel compelled to make some high-level 
personnel changes in an effort to reverse the dramatic shift 
in public opinion away from the DPP.  It is also possible, 
but far less likely, that Chen will heed the ideas of the New 
DPP proponents and engage in genuine reform of the party. 
 
PAAL