Cablegate: Media Reaction: U.S.-China Relations

This record is a partial extract of the original cable. The full text of the original cable is not available.

310709Z Aug 05

UNCLAS TAIPEI 003615

SIPDIS

DEPARTMENT FOR INR/R/MR, EAP/RSP/TC, EAP/PA, EAP/PD -
ROBERT PALLADINO
DEPARTMENT PASS AIT/WASHINGTON

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

1. Summary: Major Chinese-language Taipei dailies
focused their coverage August 31 on local politics and
warnings about the approach of Typhoon Talim, which
will very likely hit Taiwan Wednesday evening. The pro-
unification "United Daily News," nonetheless, ran a
banner headline on its front page that quoted Mainland
Affairs Council Chairman Joseph Wu as saying: "Charter
planes can fly directly from Taichung to Hong Kong and
Macao." In addition, all the Chinese-language
newspapers in Taiwan reported in their inside pages
Taiwan National Defense Minister Lee Jye's remarks that
his ministry has reduced the special budget for U.S.
arms procurements from NT$610.8 billion to NT$340
billion in the interest of political harmony. The
centrist "China Times" carried a news story noting that
the U.S. government did not send "faxes" to Minister
Lee directly to express concerns about the passage of
the U.S. arms procurement bill. Instead, the news
story said it was TECRO Chief David Lee who passed the
U.S. messages to Lee regarding the U.S. concerns when
he returned to Taipei recently.

Almost all the Chinese-language newspapers also
reported in their inside pages the upcoming visit to
Washington, DC, by Chinese President Hu Jintao. The
newspapers quoted China's Ministry of Foreign Affairs
Department of North American and Oceanian Affairs
Director-General He Yafei as saying the leaders of both
countries would definitely discuss the Taiwan issue.

2. In terms of editorials, several newspapers discussed
the "toadying culture" in the Taiwan government that is
aimed at currying favor with President Chen Shui-bian.
An editorial in the limited-circulation, conservative,
pro-unification, English-language "China Post,"
however, commented on Chinese President Hu Jintao's
U.S. visit and the issues Hu and U.S. President George
W. Bush will talk about when they meet. The editorial
said it will be very difficult for Bush and Hu to reach
consensuses on sensitive issues unless Washington is
willing to take into account China's positions and not
just consider things from its own perspective. End
summary.

"U.S. Needs a PRC Perspective"

The conservative, pro-unification, English-language
"China Post" [circulation: 30,000] noted in an
editorial (8/31):

"Trade and investment are expected to stand out
prominently in the summit meeting between U.S.
President George W. Bush and his Chinese counterpart Hu
Jintao, who is scheduled to arrive in Washington on
September 7. But it will be very difficult for the two
leaders to reach consensuses on these and other
sensitive bilateral issues, unless the U.S. side is
more willing to take into account China's positions,
not just considering things from its won perspective.

"Washington always likes to blame Beijing for its
persistent massive trade deficits with China. But
China's unfair trade practices, including a still
undervalued currency, have been only partially to
blame. The many tens of thousands of American firms,
which flocked to the mainland in recent years to take
advantage of cheap labor and ship their productions
back to the U.S., apparently have contributed to the
trade imbalances.

"The U.S. could have significantly reduced its deficits
by boosting its sales to China by removing its tight
restrictions placed on exports of high-technology goods
and services. Washington tended to cite security
considerations. But Beijing differs, criticizing the
U.S. policy as the practice of protectionism aimed at
curbing China's rise economically. Over the years,
Washington has never relaxed its campaign to force
China to open wider its market for U.S. investment.
But the irony is that the U.S. does not seem to be
willing to reciprocate Chinese liberal measures by
opening up its own markets when it comes to areas it
sees as strategically important. ."

KEEGAN

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