Cablegate: Media Reaction: Middle East, U.S.-Taiwan Relations, North

VZCZCXYZ0013
RR RUEHWEB

DE RUEHIN #2572/01 2130846
ZNR UUUUU ZZH
R 010846Z AUG 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 1355
INFO RUEHBJ/AMEMBASSY BEIJING 5499
RUEHHK/AMCONSUL HONG KONG 6706

UNCLAS AIT TAIPEI 002572

SIPDIS

DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - SCOTT WALKER
DEPARTMENT PASS AIT/WASHINGTON

SIPDIS

E.O. 12958: N/A

TAGS: OPRC KMDR KPAO TW
SUBJECT: MEDIA REACTION: MIDDLE EAST, U.S.-TAIWAN RELATIONS, NORTH
KOREA

1. Summary: Taiwan's major Chinese-language dailies continued to
focus their coverage August 1 on the investigations into "possible
irregularities" in the Presidential Office's special state affairs
expensure account and the Sogo Department Store gift certificate
case; the salary of a housekeeper who works for President Chen's
daughter but has been paid out of public funds; and a Taipei
District Court ruling Monday that the bail for President Chen
Shui-bian's son-in-law on charges of insider trading should be
continued. The pro-independence "Liberty Times," Taiwan's biggest
daily, however, dedicated its first and third pages to a Hong Kong
newspaper report, which said that China Central Television is
interested in purchasing TVB, Hong Kong's largest TV network and the
principal shareholder of Taiwan's TVBS broadcasting network.

2. In addition, Taiwan has finally turned its eyes to the war in the
Middle East. Several Chinese-language papers dedicated one or more
inside pages to reporting on Israel's raids in Lebanon. In terms of
editorials and commentaries, an opinion piece in the pro-status quo
"China Times" said Israel's invasion of Lebanon is nothing but part
of the bigger chess game, in which the U.S.-led superpowers are
re-formulating geopolitics in the Middle East and Central Asia. An
analysis in the pro-unification "United Daily News" noted that if
Israel continues to play the role of a victim, peace in the Middle
East will be a distant dream. An editorial in the
limited-circulation, conservative, pro-unification, English-language
"China Post" discussed the possibility of Taiwan signing a Free
Trade Agreement with the United States. An opinion piece in the
limited-circulation, pro-independence, English-language "Taipei
Times," on the other hand, said there is a silver lining for Taiwan
in the recent North Korean crisis. End summary.

3. Middle East

A) "How Taiwan Should Look at War in Lebanon"

Yang Wei-chong, a Standing Committee member of the Workers'
Democracy Association, opined in the pro-status quo "China Times"
[circulation: 400,000] (8/1):

"... Not even the world's mainstream media outlets are able to cover
up Israel's intentions. ... In the final analysis, this 'Israeli
invasion supported by the United States,' as named by international
anti-war activists, is nothing but a part of the bigger chess game
in which the U.S.-led superpowers are re-formulating geopolitics in
the Middle East and Central Asia. This chess game started with the
war in Afghanistan, was followed by the invasion of Iraq, and the
current Israeli military action just created a climax for the game.
The purpose of such a chess game is to ensure that the United States
and its 'attendants' can thoroughly control this area. It is thus
not difficult for us to understand why U.S. Secretary of State
Condoleezza Rice believes that it is 'too early' for a cease-fire
and why U.S. President Bush took no action except to say he was
sorry about the civilian casualties in Lebanon. Now international
observers have started to discuss the possibility of an upgraded war
in the Middle East. But despite the various views, it is not
difficult to imagine that the United States will take direct action
against Syria and Iran sooner or later, since the two nations have
always had profound interests in and associations with Lebanon. ..."

B) "It's All Hezbollah's Fault?"

European correspondent Chen Yu-hui noted in the pro-unification
"United Daily News" [circulation: 400,000] (8/1):

"... The international community's hesitation in articulating its
position has, in reality, revealed its tacit agreement to Israel's
right of self-defense. But over the past few days, Israel's
over-reaction has gone beyond the limits of self-defense, and its
actions clearly indicated Israel's desire to punish the entire
Lebanese people for just a few extremists. ...

"Israel is the strongest country in the Middle East, but it always
sees itself as a victim. ... If Israel continues to stick to the
role of a victim, it will put itself in an even more unfavorable
position. Israel has not only launched a war that it will never
win, but will also trigger more and more suicidal attacks from the
radical Islamic groups. Israel's move is akin to getting itself
into trouble and making peace in the Middle East a dream for the
indefinite future. ..."

4. U.S.-Taiwan Relations

"No San-tong, No U.S. FTA"

The conservative, pro-unification, English-language "China Post"
[circulation: 30,000] editorialized (8/1):

"The U.S. has bluntly warned the pro-independence government of
President Chen Shui-bian that it will not negotiate a Free Trade
Agreement (FTA) with Taiwan unless the island opens san-tong (three
direct transport links) with the mainland, the island's biggest
export market. ... Despite its rhetoric, Beijing's opposition to a
U.S. FTA with Taiwan is half-hearted because the pact would
strengthen the U.S. reign over the island's separatist leadership.
The U.S. supports Beijing's 'one China' principle. ...

"Last week's Conference on Sustainable Economic Development, the
second in five years, failed again to pave the way for direct
cross-Strait flights and the easing of a 40-percent cap on
investments in China, which remains Taiwan's most disfavored trading
partner. No wonder, few investors and businessmen would place their
eggs in the Taiwan basket."

5. North Korea

"The North Korea Impasse and Taiwan"

Commentator Li Thian-hok opined in the pro-independence,
English-language "Taipei Times" [circulation: 30,000] (8/1):

"... For Taiwan, there is a silver lining in the recent Korean
crisis. First, the US may decide to expand and increase funding for
its missile defense system. As this system become more effective,
it will be easier for the US to help defend Taiwan if China attacks,
since a Chinese nuclear threat will be less credible. Second, this
month the Pentagon will start relocating the Patriot Advanced
Capability-3 system, along with 600 specially-trained troops from
Texas to Okinawa. While designed to defend Japan, the PAC-3 system
could also be useful in a Taiwan contingency. Finally, the North
Korea missile test could influence the election of Japan's new Prime
Minister next month, to the benefit of Taiwan. The two main
contenders are Yasuo Fukuda, who is more pro-China, and Shinzo Abe,
who is more appreciative of Taiwan's strategic importance to Japan's
vital sea lanes. Fukuda has reportedly been gaining on Abe, partly
because of Beijing's calculated peace offensive.

"For Taiwan, the North Korean missile tests should reinforce the
urgent need to strengthen national defense, including the
development of offensive missile capabilities, such as cruise
missiles. Taipei should also be diligent in cooperating with the
U.S.-led Proliferation Security Initiative, a multi-state program
designed to interdict transfer of weapon of mass destruction and
other illicit materials."

YOUNG

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