Cablegate: December 13 Tao Press Briefing: Taiwan Mayoral

VZCZCXRO3888
OO RUEHCN RUEHGH RUEHVC
DE RUEHBJ #4496/01 3471239
ZNR UUUUU ZZH
O 131239Z DEC 06
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2990
INFO RUEHOO/CHINA POSTS COLLECTIVE

UNCLAS SECTION 01 OF 02 BEIJING 024496

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PREL ETRD ECON CH TW
SUBJECT: DECEMBER 13 TAO PRESS BRIEFING: TAIWAN MAYORAL
ELECTIONS, VISITS TO MAINLAND, CHARTER FLIGHTS, LOANS TO
TAIWAN BUSINESSES, 2008 OLYMPICS, FINANCIAL COOPERATION

Summary
-------

1. Key points at the December 13 Taiwan Affairs Office (TAO)
press briefing were:

-- The spokesman declined to comment on Taiwan's internal
politics, including the recent mayoral elections and calls
for the KMT change its name to "Taiwan Kuomintang."

-- TAO welcomes any person, party or organization from Taiwan
that accepts the One China Policy and the 1992 Consensus, Li
sad in response to questions regarding possible vsits by
Legislative Yuan President Wang Jin-Pyng and Taipei
Mayor-elect Hau Lung-bin.

-- Whether there is now a "window of opportunity for
cross-Strait talks will depend on the Tiwan side.

-- Cross-Strait charter flights for the Spring Festival will
run for 28 days beginning on February 5.

-- Mainland banks have begun granting loans to Taiwan
businesses in accordance with an agreement signed with TAO,
and TAO hopes to continue promoting financial cooperation
with Taiwan banks.

-- The spokesman rejected criticism that the process for
choosing sponsors for the 2008 Olympics has been
insufficiently transparent, claiming that the Beijing Olympic
Committee has treated fairly all businesses both in China and
abroad. End Summary.

Taiwan Internal Developments
----------------------------

2. Taiwan Affairs Office (TAO) spokesman Li Weiyi deflected
reporters' questions about Taiwan internal politics during
the December 13 press briefing. Asked for his opinion on
issues such as the outcome of Taiwan mayoral elections,
questions over the influence Chen Shui-bian's and Ma
Ying-jeou's political activities on the Kaohsiung race, Li
merely said the TAO is paying attention to relevant reports.
In response to a reporter's request for comment on calls for
the KMT to change its name to "Taiwan Kuomintang" and what
impact that change might have on Mainland-KMT relations, Li
said that TAO believes the KMT can make its own decisions and
that TAO's consistent position has been to promote exchange
in economic, cultural and other fields.

Visits to Mainland
------------------

3. When asked if Legislative Yuan President Wang Jin-pyng and
Taipei's Mayor-elect Hau Lung-bin could visit the Mainland,
Li replied that China's clear and consistent position is that
it will welcome to the Mainland any person, political party
or group who accepts the One China Policy and the 1992
Consensus. Asked separately for specifics on the visits of
these two officials, Li said only that TAO respects the views
of Mayor-elect Hau and that journalists can follow Taiwan
media reports for Legislative Yuan President Wang's opinions
and comments.

4. Asked if there had been any change in policy toward the
visits of persons affiliated with the DPP, Li said that TAO
welcomes those with the proper status to visit the mainland,
noting there is a difference between the broad majority of
DPP members and the tiny minority of "independence" elements.
In response to a reporter's question about a "window of
opportunity" for cross-Strait talks before 2007, Li said the
window for talks "has always been open," but using the
opportunity will depend on the Taiwan side.

Cross-Strait Charter Flights Schedule
-------------------------------------

5. According to arrangements made among private cross-Strait
airline organizations on June 14 of this year, 48 round trips
-- a total of 96 charter flights -- will run from February 5
to March 4 between the Mainland cities of Beijing, Shanghai,
Guangzhou and Xiamen and Taibei and Kaohsiung in Taiwan.
Mainland airlines personnel will be allowed to travel to
Taiwan 10 days prior to the charter flights period. Li
expressed the Mainland's hope that the two sides can continue
to increase the number of flights and passengers between
Taiwan and the Mainland.

Mainland Bank Loans to Taiwan Businesses
----------------------------------------

BEIJING 00024496 002 OF 002

6. The National Development Bank has already given over RMB
three billion in loans to nearly 60 Taiwan-invested companies
and is currently researching ways to support the development
of small and medium-sized Taiwan agricultural enterprises on
the Mainland, Li stated. Loans granted by the two banks are
going to small and medium-sized companies in a variety of
industries including electronics, chemicals, metallurgy,
building materials, food products and logistics. Li said TAO
will continue promoting this financing work established by
the "Support Development of and Cooperation with Taiwan
Companies" Agreement signed last year by the National
Development Bank, Huaxia Bank and TAO to offer better service
to Taiwan businesses.

Taiwan Participation in 2008 Olympics
-------------------------------------

7. Li rejected criticism that the Beijing Olympic Committee's
process for choosing commercial sponsors was insufficiently
transparent. Li argued that the Beijing Olympic Committee
has treated domestic and international enterprises fairly,
equally and without discrimination from beginning to end.

8. Asked for information on how Taiwan residents can purchase
2008 Olympics tickets that are set to go on sale next year,
Li said TAO is concerned about this issue and will contact
the Beijing Olympic Committee to better understand its plans.

Financial Cooperation Hindered by Taiwan
----------------------------------------

9. Li agreed with a reporter's statement that opportunities
for Taiwan banks on the Mainland following China's opening to
full banking competition last week could be lost because of
barriers set up by the Taiwan authorities. Li added that TAO
has always had positive views toward cross-Strait cooperation
and exchange and hopes that Taiwan can remove these obstacles
and further enhance cooperation in the financial field.

Agreement on Mainland Tourists' Travel to Taiwan?
--------------------------------------------- ----

10. A Xinhua reporter asked if Taiwan media reports were true
that the Mainland and Taiwan had reached consensus on opening
Taiwan to Mainland tourists, with an agreement to be signed
after the mayoral elections. Li acknowledged that Mainland
and Taiwan private tourist organizations had held technical
consultations on numerous occasions but said that it was up
to these organizations to determine when to reveal the
contents of their discussions and when to sign any agreement.
Asked to verify reports that the Mainland had already
approved 15 Mainland travel agencies' participation, Li said
that those reports were not yet confirmed.
Randt

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