US embassy cable - 05TAIPEI4441

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 004441 
 
SIPDIS 
 
STATE PASS AIT/WASHINGTON 
 
E.O. 12958: DECL: 11/01/2015 
TAGS: PREL, PGOV, ASEC, TW 
SUBJECT: TAIWAN STRUGGLING TO IMPROVE ROK TIES 
 
REF: TAIPEI 4190 
 
Classified By: AIT Acting Director Dave Keegan, Reason 1.4 (b/d) 
 
1. (C) Summary: Taiwan officials are frustrated by the 
Republic of Korea's (ROK) close ties to the PRC.  They assert 
that Taipei's efforts to engage Seoul have been spurned 
because of PRC pressure and the ROK's goal of rapprochement 
with Pyongyang.  ROK diplomats in Taipei complain that Taiwan 
President Chen Shui-bian's tactic of publicizing foreign 
policy initiatives for domestic gain has compromised ROK 
efforts to maintain a low profile and avoid friction with 
Beijing.  Economically, Taiwan-ROK ties are improving and 
tourism is on the rise since direct air links were 
reestablished in 2004, but Taipei is still facing a trade 
deficit with Seoul.  End summary. 
 
Political Ties Still Strained 
----------------------------- 
 
2. (C) Taipei's relationship with the ROK remains strained 
since diplomatic ties were severed in 1992. (Note: When Seoul 
severed diplomatic ties with Taiwan, Taipei felt betrayed, 
and bitter feelings ensued between both sides for several 
years.  End note).  Taiwan National Security Council (NSC) 
Senior Researcher for Korea and Japan Chen Pei-yuan told AIT 
that Taipei has tried several initiatives to engage South 
Korea to warm bilateral ties, but has been rebuffed by Seoul. 
 Chen said under the current circumstances, it will be 
difficult for Taipei to make progress particularly since only 
minor Taiwan government officials can officially visit the 
ROK.  Taiwan Ministry of Foreign Affairs (MOFA) Chief for 
Korean and Japanese Affairs Huang Shue-I told AIT that while 
economic ties have improved, political relations between 
Taipei and Seoul were "almost non-existent." 
 
Seoul Focused on the PRC 
------------------------ 
 
3. (C) Taiwan NSC and MOFA officials assert that the ROK's 
top priority is maintaining good ties with Beijing and thus, 
Seoul is susceptible to PRC pressure.  MOFA's Huang said that 
the ROK is wary of Taiwan because Seoul wants to focus its 
economic ties on the growing PRC market and needs good 
relations with the PRC to ensure that Beijing will continue 
to use its influence with North Korea to moderate Pyongyang. 
The ROK Representative Office in Taipei Political Chief Lee 
Hai-kwang argued that Seoul must maintain its distance from 
Taiwan because there is a limit to what the ROK can do with 
Taiwan.  He added that "we have to be cautious because of the 
importance of Beijing to Korean economic and political 
interests." 
 
And Frustrated Over Taiwan's Foreign Policy 
------------------------------------------- 
 
4. (C) The ROK is also frustrated with Taiwan President 
Chen's practice of publicizing foreign policy initiatives for 
domestic audiences in Taiwan.  The ROK's Lee maintained that 
Taiwan's practice of using the press to announce foreign 
policy initiatives rather than seeking more subtle channels 
of communication creates great difficulties for Seoul and has 
only served to exacerbate Taiwan-ROK ties.  Lee explained 
that Taiwan's use of the press often escalates minor events 
into larger controversies, which in turn puts the ROK in a 
difficult situation with the PRC.  He mused that President 
Chen's diplomatic practices are counterproductive and further 
isolate Taiwan from Seoul and other potentially friendly 
governments in Asia.  Lee added that Taiwan is promoting 
former ROK President Kim Young-sam's visit to Taiwan (October 
31-November 3), but he assured AIT that Kim's visit is not 
politically significant and noted that Kim visited Taiwan 
last year. 
 
APEC Controversy Highlights Strains 
----------------------------------- 
 
5. (C) Lee pointed to Taiwan's use of the media to announce 
its APEC representative as an example of this ineffective 
strategy and why Seoul must be cautious towards Taiwan 
(reftel).  (Note: President Chen announced to the press in 
July - before consulting Seoul or Beijing - that he intended 
to represent Taipei at the November APEC leaders' meeting in 
Pusan and then announced in October he intended to send LY 
speaker Wang Jing-pyng.  End note).  Lee said the APEC 
controversy was compounded by Taiwan's use of the media for 
dialogue instead of conveying messages through direct 
channels, which has put the ROK in an awkward position.  Lee 
said Seoul is trying to play the middle ground, but when the 
issue is forced Seoul will of course have to support Beijing. 
 Taiwan officials have been disappointed with the lack of 
support shown by Seoul and NSC's Chen told AIT that the APEC 
incident shows that the ROK is afraid of Beijing. 
 
Economic Ties Growing, But Challenges Remain 
-------------------------------------------- 
 
6. (C) Despite the political strains, economic cooperation 
between Seoul and Taipei continues to improve.  MOFA's Huang 
said that Taiwan-ROK trade has expanded and the ROK is now 
Taipei's 4th largest export market.  He also noted that after 
direct air-links were reestablished in 2004, tourism has 
increased - 150,000 visitors annually from the ROK and 
300,000 from Taiwan.  While NSC's Chen admitted economic ties 
are growing, he pointed to the serious trade deficit, which 
is an issue of great concern to Taiwan.  He said Taiwan has 
sought bilateral trade talks, but has had little success in 
closing the trade gap.  Chen added that most ROK companies 
are large conglomerates focused on the large PRC market, 
while most Taiwan companies are small-or medium-sized firms, 
which are less attractive for trade and investment to ROK 
firms.  Chen told AIT that the situation is difficult and 
many challenges remain for Taiwan's economic relations with 
Seoul. 
 
Comment: Little Likely to Change 
-------------------------------- 
 
7. (C) Taiwan MOFA and NSC officials complained loudly to AIT 
about Beijing's influence over the ROK.  They offer, however, 
little realistic expectation that the Taiwan president can be 
dissuaded from using a "public" approach for Taiwan's foreign 
policy, which has only alienated governments in the region. 
Taipei would be better served to use more subtle and discreet 
diplomacy - as it proved it can do with the UAE in September 
- with Seoul and other governments in Asia.  The challenge 
will be to use such discretion in pursuit of strategic gain 
rather than presidential photo-ops. 
Keegan