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Cablegate: New Economic and Finance Vice Ministers

VZCZCXRO5390
RR RUEHGH
DE RUEHIN #2880/01 2330146
ZNR UUUUU ZZH
R 210146Z AUG 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 1731
RUEATRS/DEPT OF TREASURY WASHDC
INFO RUCPDOC/USDOC WASHDC
RUEHBK/AMEMBASSY BANGKOK 3384
RUEHBJ/AMEMBASSY BEIJING 5553
RUEHUL/AMEMBASSY SEOUL 8026
RUEHGP/AMEMBASSY SINGAPORE 6580
RUEHKO/AMEMBASSY TOKYO 7947
RUEHML/AMEMBASSY MANILA 9780
RUEHJA/AMEMBASSY JAKARTA 3910
RUEHKL/AMEMBASSY KUALA LUMPUR 3547
RUEHHI/AMEMBASSY HANOI 3116
RUEHBY/AMEMBASSY CANBERRA 4293
RUEHWL/AMEMBASSY WELLINGTON 1544
RUEHHK/AMCONSUL HONG KONG 6768
RUEHGH/AMCONSUL SHANGHAI 0320
RUEHGZ/AMCONSUL GUANGZHOU 9500

UNCLAS SECTION 01 OF 02 TAIPEI 002880

SIPDIS

SIPDIS

STATE PLEASE PASS USTR

STATE FOR EAP/RSP/TC, EAP/EP

USTR FOR ALTBACH

USDOC FOR 3132/USFCS/OIO/EAP/WZARIT
TREASURY FOR OASIA/LMOGHTADER
TREASURY PLEASE PASS TO OCC/AMCMAHON
TREASURY ALSO PASS TO FEDERAL RESERVE/BOARD OF
GOVERNORS AND SAN FRANCISCO FRB/TERESA CURRAN

E.O. 12958: N/A
TAGS: EINV EFIN ECON PINR TW
SUBJECT: New Economic and Finance Vice Ministers
REF: TAIPEI 2634

1. Summary: Following the promotion of Steve Chen from Ministry of
Economic Affairs (MOEA) Political Vice Minister to Minister
(reftel), the Executive Yuan (EY) shifted Shih-Yen Shiang (Note:
Shih-Yen is his family name.) from MOEA Administrative Vice Minister
to MOEA Political Vice Minister and transferred Hsieh Fa-dah from
Political Vice Chairman of the Council for Economic Planning and
Development to MOEA Administrative Vice Minister. Shih-Yen will be
in charge of industrial development, while Hsieh will oversee trade
and international relations. The EY also promoted Ministry of
Finance (MOF) National Treasury Director General Liu Teng-cheng to
MOF Administrative Vice Minister. Liu will replace Gordon Chen, who
was recently designated Chairman of the Taiwan Stock Exchange. End
Summary.

Political Vice Minister of MOEA: Shih-Yen Shiang
--------------------------------------------- ---

2. Shih-Yen, 56, has served as MOEA Administrative Vice Minister
overseeing industrial policies and technology development for four
and a half years. He joined MOEA 20 years ago and served as
Director General (DG) of the Department of Industrial Technology
1989-1992, and DG of the Department of Small and Medium Enterprises
1992-1996 before he was transferred to the Ministry of Finance in
January 1996. Four years later, Shih-Yen was transferred back to
the MOEA to serve as DG of the Industrial Development Bureau.
Shih-Yen earned a BS in chemistry from National Taiwan University
(NTU) and a Ph.D. in chemistry from Massachusetts Institute of
Technology. He is a devout Buddhist and lives a simple life. He
rarely participates in social activities. He neither smokes nor
drinks.

Administrative Vice Minister of MOEA: Hsieh Fa-dah
--------------------------------------------- -----

3. Hsieh, 56, will replace Shih-Yen as Administrative Vice Minister
of the MOEA after Shih-Yen is inaugurated as Political Vice
Minister. Hsieh has served as Political Vice Chairman of the
Council for Economic Planning and Development (CEPD) for four and a
half years. Former Economic Minister Lin Hsin-I recruited Hsieh
from the Bureau of Foreign Trade (BOFT) to serve as Secretary
General of the MOEA. When promoted to Vice Premier in February
2002, Lin Hsin-I promoted Hsieh to Political Vice Chairman of the
CEPD. Hsieh was appointed as Director of the BOFT's 3rd Department
(in charge of multilateral and regional issues) in 1997 and promoted
to Director General of the MOEA's International Cooperation
Department in 1998. Prior to 1997, he spent nearly 20 years posted
to trade offices in foreign countries, including the United States,
Australia and South Africa. Hsieh earned a BA in 1973 and an MA in
1977 both in economics from National Chengchi University.

Administrative Vice Minister of MOF: Liu Teng-cheng
--------------------------------------------- ------

4. Liu, 56, will replace Gordon Chen to serve as MOF Administrative
Vice Minister. Liu has served as Director General of the National
Treasury for four years. His management of state-owned equity
shares and privatization issues has won praise from both ruling and
opposition parties. From November 2000 to April 2002, Liu served as
Director of the MOF Taxation Training Institute. Liu worked at the
Taiwan Provincial Government (TPG) for 26 years until the TPG was
phased out in late 1999. He joined TPG as a legal officer in 1974
and was subsequently promoted to Deputy Commissioner of the
Provincial Department of Finance (PDF) in 1995, and to Acting PDF

TAIPEI 00002880 002 OF 002


Commissioner in 1998. Liu earned a BBL in 1974 and an MBA in 2002
from National Taiwan University (NTU). He is smart but easygoing.

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