Cablegate: Media Reaction: U.S. On Cross-Strait Trade Relations

VZCZCXYZ0013
RR RUEHWEB

DE RUEHIN #1175 1450926
ZNR UUUUU ZZH
R 250926Z MAY 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 5391
INFO RUEHBJ/AMEMBASSY BEIJING 6832
RUEHHK/AMCONSUL HONG KONG 8086

UNCLAS AIT TAIPEI 001175

SIPDIS

SIPDIS

DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - LLOYD NEIGHBORS
DEPARTMENT PASS AIT/WASHINGTON

E.O. 12958: N/A
TAGS: OPRC KMDR KPAO TW
SUBJECT: MEDIA REACTION: U.S. ON CROSS-STRAIT TRADE RELATIONS

Summary: Taiwan's major Chinese-language dailies focused news
coverage May 25 on the year-end legislative elections, on an alleged
corruption scandal involving the renovation of the National Palace
Museum, and on other local issues. The centrist, KMT-leaning "China
Times" front-paged an exclusive banner headline that read "Revamping
the Party Charter and Moving toward Nativism; KMT Removes
Unification and Adds Taiwan [to Its Party Charter]." In terms of
editorials and commentaries, an op-ed piece in the pro-unification
"United Daily News" commented on AIT Director Stephen Young's
remarks on cross-Strait trade relations in a speech to Taiwan's
Chinese National Association of Industry and Commerce Monday. The
article said that Taiwan needs to pay attention to Young's call for
further opening of cross-Strait trade relations because, as an
onlooker who sees most of the game, Young is more objective in
pointing a way for Taiwan to get out of its current predicament.
End summary.

"Stephen Young Knows about the Predicament of a Frog Being Cooked in
Lukewarm Water"

Associate Professor Pang Chien-kuo of Chinese Culture University's
Sun Yat-sen Graduate Institute opined in the pro-unification "United
Daily News" [circulation: 400,000] (5/25):

"AIT Director Stephen Young has again emphasized before President
Chen Shui-bian recently that a critical way to improve the
U.S.-Taiwan trade partnership is for Taiwan to further open its
economic relationship with China. The question is: the speaker was
talking with great earnestness, but what about the listener? ... If
[Taiwan] does not want to become a frog cooked in lukewarm water, it
has to pay attention to Young's remarks. Why does Young, who is
generally believed to be very friendly with President Chen, have to
speak [such remarks] out loud repeatedly? What Young has been
pleading for are of course the interests of U.S. businesses. But it
is exactly because Young is an onlooker who can see clearly most of
the game, he is more objective in pointing out to Chen how Taiwan
can get out of its [current] predicament.

"It is already common sense [for people] that Taiwan's stalling in
opening [cross-Strait] direct transportation, which has hindered the
free flow of people, goods, and capital across the Taiwan Strait,
has done serious damage to Taiwan's competitiveness. The general
public may not understand the basic truth about globalization, but
they are aware that, if there is no breakthrough in the cross-Strait
relations, the only way for them to make more money will be to
withdraw money from the banks and the stock market and use it to buy
all kinds of mutual funds that invest in Chinese or foreign
enterprises or stock markets. As a result, Taiwan's economy will
continue to linger in the doldrums, rendering the island more and
more like the frog caught in lukewarm water.

"Will there be risks if [Taiwan] loosens its policies on
cross-Strait [trade relations]? Of course. But as in the case of
confronting the competition created by globalization, risks and
opportunities always co-exist. To be a winner, one must be able to
control risks and seize opportunities. Taiwan has already missed
the optimal timing, and if it continues procrastinating, it will
only be pushed to the edge of the big platform of globalization and
regional integration. Let us wait and see if Chang Chun-hsiung's
Cabinet is able to break through the impasse across the Taiwan
Strait, control the risks and seize the opportunities."

YOUNG

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