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Tsai speaks out at DPP convention
　

ADDICTED TO EXPANSION: DPP Chairwoman Tsai Ing-wen said in her address that the KMT’s policies had put Taiwanese sovereignty in unprecedented danger
　

By Rich Chang
STAFF REPORTER
Monday, Jul 21, 2008, Page 1
　

Taiwan’s sovereignty is in jeopardy and the country could be sacrificed under the leadership of the Chinese Nationalist Party (KMT) administration, Democratic Progressive Party (DPP) Chairwoman Tsai Ing-wen (蔡英文) said yesterday.

“The compromises made by the new government in exchange for uncertain economic advantages from such things as cross-strait charter flights and tourism have put Taiwan’s sovereignty in unprecedented danger,” she said. “The DPP must not watch this happen with folded arms and look on unconcerned. Instead, it must use its governing experience and play the role of balancing and monitoring [the government] well.”

Tsai made the remarks at the DPP’s annual National Convention yesterday, the first she presided over after assuming the party chairmanship in May.

In her speech, Tsai said the KMT government had led Taiwan into a crisis even though it has only been in power for two months.

On the economic front, she said “the government is addicted to expansionary policies while ignoring the problem of inflation.”

As for the stock market, the government misled investors and ended up causing them huge losses, she said.

The government’s China-leaning cross-strait policies and its 25 measures on opening the nation to China would only result in Taiwan losing its bargaining chips in cross-strait exchanges, and prompted Taiwan’s allies to question whether Taiwan would remain of strategic significance to them, she said.

Tsai said that when the KMT was in the opposition, it long blocked weapons procurement bills, and since assuming office in May, its ambiguous position toward the issue has lost the nation an opportunity to strengthen its defenses.

Tsai told her audience that the DPP must stand up to assert the interests of Taiwan and the Taiwanese, insist on upholding Taiwan’s sovereignty and stand by the right of Taiwanese to choose their country’s future.

“The DPP must stage a comeback and become a better choice than the KMT for voters,” she said.

The one-day convention yesterday passed a proposal not to conduct a primary for next year’s mayoral elections. Instead, candidates who will run in the local elections would be recruited and vetted by the Central Executive Committee (CEC), the party’s highest decision-making body.

Former DPP legislator Lin Chun-mo (林重謨) told the convention that, as the party chairwoman, Tsai should play a major role in the CEC’s nomination process and take responsibility for the nominations. The convention proposed the nominations be named by the end of this year.

The convention also approved an amendment to the party’s corruption code, specifying certain behavior and conduct that would be regarded as corruption and outlined punishments for such acts.

The party representatives attending the convention also elected 30 CEC members. Ten were elected from the 30 members-elect of the Central Standing Committee.

Several DPP heavyweights attended the convention, including former president Chen Shui-bian (陳水扁), former premiers Frank Hsieh (謝長廷), Su Tseng-chang (蘇貞昌) and Yu Shyi-kun, and former chairman Hsu Hsin-liang (許信良). Legislative Speaker Wang Jin-pyng (王金平) was invited as a guest.

Tsai said that Chen had invited Hsu to rejoin the party. After failing to secure the party’s presidential nomination for the 2000 presidential election, Hsu withdrew from the DPP in 1999 and ran unsuccessfully as an independent.

Hsu was closely associated with the pan-blue camp over the past few years, particularly during the anti-Chen Shui-bian campaign in August 2006 initiated by former DPP chairman Shih Ming-teh (施明德). Hsu’s endorsement of Hsieh in the run-up to March’s presidential election was as an apparent move away from the pan-blue camp.

Hsu reportedly had asked Tsai yesterday “to return his old party card,” indicating Hsu’s willingness to rejoin the party.

Listen to the voice

Cambodia reports Thai ‘incursion’
　

STANDOFF: A Cambodian general said he held little hope that a meeting scheduled for today would resolve the dispute over territory claimed by both the countries

AP, PREAH VIHEAR, CAMBODIA
Monday, Jul 21, 2008, Page 5

Cambodia has informed the UN Security Council that Thai forces have violated its territory near an ancient World Heritage Site temple where hundreds of troops continued to face off yesterday.

Cambodia’s permanent mission in New York submitted a letter to the chairman of the Security Council and the chairman of the General Assembly to “draw their attention to the current situation on the Cambodian-Thai border,” Information Minister Khieu Kanharith said.

“Cambodia is not asking for UN intervention. We still stick to [Cambodian] Prime Minister Hun Sen’s instructions to try to solve the problem peacefully between the two sides,” the minister told reporters in Phnom Penh.

It was unclear when the letter was submitted.

The conflict over territory surrounding Preah Vihear temple escalated when UNESCO recently approved Cambodia’s application to have the complex named a World Heritage Site. Thai activists fear the new status will undermine Thailand’s claim to nearby land since the border has never been demarcated.

Troops from the opposing forces were on the brink of a shoot-out on Thursday night, which was avoided when Cambodians retreated from a site occupied by the Thais.

Opposing commanders and their troops have tried to defuse tensions, sometimes even sharing meals, snapping photographs and sleeping within easy sight of one another.

A Cambodian general, meanwhile, said he had little hope that upcoming talks between his government and Thailand would resolve the tense border dispute.

Cambodian Brigadier General Chea Keo said Thai troops have deployed an artillery piece about 1km northeast of Preah Vihear temple — the latest escalation ahead of today’s meeting aimed at averting a military confrontation.

“Regarding the talks tomorrow, we have little hope about the outcome,” Chea Keo said.

Despite their pledge to hold talks today in Thailand to try to defuse the tensions, both Cambodia and Thailand have massed troops at the site.

“We continue to be on alert at all time. And at the same time, we keep instructing our soldiers to be patient and avoid being blamed for starting a war,” Chea Keo said yesterday.

The dispute has taken a toll on tourism in the area, with the Thai side closed to visitors. It also is starting to hurt economic relations between the two neighbors.

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Taiwan cannot play off China, US
　

By Chen Hsin-Chih 陳欣之
Monday, Jul 21, 2008, Page 8

Admiral Timothy Keating, the commander of the US Pacific Command, said in Washington that “it is very, very, very unlikely that there will be conflict across the Strait” in light of the current cross-strait situation. This explains why there have been no significant arms sales from the US to Taiwan recently. The reconciliation between Taiwan and China after President Ma Ying-jeou’s (馬英九) government came to power has not only affected the relations between Taiwan, China and the US, but has also made the strategic intentions of Beijing and Washington much clearer.

The possibility of a war between China and the US in the short-term because of the “Taiwan factor” has dropped dramatically. Washington will have time to rest and recuperate, and Beijing will be able to concentrate on its various internal conflicts, laying a foundation for its rise as the new hegemony. Possible points of conflict between the US and China are more likely to be issues such as international trade, human rights and global responsibility.

First, the easing of tensions between Taiwan and China also helps relieve tensions between the US and China, allowing Washington to employ a flexible China policy in the face of Beijing’s “peaceful rise.” After the normalization of China-US relations in 1979, to maintain both the trust of its allies and its dominant role in Southeast Asia, the US had been forced on several occasions to interfere with China’s attempt to claim Taiwan by force. Still, each US administration has tried hard to avoid a war, as such military interference would affect the economic and financial relations between the US and China. The US also tried to avoid triggering another “cold war” by using military force to defend Taiwan.

Therefore, the recent reconciliation between China and Taiwan is beneficial to the US and also highlights the significance that business will play in relations between China and the US.

Second, the US’ leading international position has been challenged around the world in recent years. China’s participation will be indispensable in the US’ attempts at using multilateral adjustment to reform the balance of international power. The US is skilled at using various international systems and Beijing will be a force in helping Washington revive itself.

For example, the US was able to eventually resolve the North Korean nuclear crisis thanks to China. Beijing also assisted in the US handling of Sudan’s Darfur conflict. It would thus be a great loss for the US to sacrifice its chances of further cooperation with China just for Taiwan. In essence, cross-strait reconciliation will lower the US’ political and military costs for stabilizing today’s global situation.

Third, if China changes the “status quo” across the Taiwan Strait by using military force, it is likely to destroy any opportunity it has of rising in power. But if China handles the issue peacefully, it will build a new path for itself to become a hegemony. The warming relations between Taiwan and China eliminate the possibility of a direct conflict between China and the US. As a result, China does not have to lose the results of its reform over the past three decades and can improve its international image in the process. All China has to do is wait for a suitable time to replace the US as the world’s leading superpower.

Taiwan’s attempt to challenge international consensus has been ended through cooperation between the US and China. The past decade proved Taiwan to be a troublemaker that wished to gain from a possible conflict between China and the US. Hence, both Beijing and Washington had to keep Taiwan in check on several occasions, as it walked into a dead-end alley and was marginalized internationally. Taiwan’s provocations actually supplied Beijing and Washington with a reason to communicate, as they had to clarify their strategic intentions.

Taiwan will have a hard time getting rid of its reputation as a “troublemaker” without the support of the US and China. Today, Beijing and Washington are the biggest winners from the reconciliation between China and Taiwan.

The US and China may come up with creative ways of encouraging Taiwan to stick to its policy of reconciling with Beijing. However, after business conflicts become a core issue between Beijing and Washington, the complex business relations that exist between Taiwan, China and the US will prove to be a hard test of the Taiwanese government’s wisdom.

Chen Hsin-chih is an associate professor of political science at National Cheng Kung University.

Listen to the voice

Rethinking the moves to be closer to Beijing
　

By Nat Bellocchi 白樂崎
Monday, Jul 21, 2008, Page 8

Would voters in Taiwan vote the same way today as they did on March 22? Some, especially in the business sector, are still hopeful. Others are “still not clear.” But already, surely, there are a considerable number of people who would vote differently.

In the news one sees government plans that were expected, many of which are not yet agreed to by China, and others that are not clear. Many more are about what is wrong for Taiwan or what should be done, but that has not had an impact on what the government does. And little political opposition is heard.

In the run-up to the legislative and the presidential elections, Taiwan’s economy was touted as being in poor health and deteriorating, although it was not as bad as it was made out to be. The economy has declined since the new government took over, but much of that was based on global economic changes and not so much government policies.

Despite the rather large number of people concerned about having a pro-China government, the Chinese Nationalist Party (KMT) continues to move in that direction. In May the government approved reforms allowing greater investments by Taiwanese financial firms in China. The Ministry of Economic Affairs is working on changes in cross-strait trade and economic ties, easing the cap on China-bound investment. That is the first step. Then the government will list some restrictions that prevent companies in certain sectors, such as high-end semiconductors and liquid-crystal displays, from investing in China before allowing Chinese companies to invest in Taiwan.

President Ma Ying-jeou (馬英九) has said Taiwan should be more open and relax its rules on Chinese investment by Taiwanese chipmakers. But Taiwanese semiconductor companies in China have reported losses. They say the market is not as big as they hoped, the Chinese government has abolished several tax benefits for Taiwanese businesspeople and that labor costs are now higher than in Thailand.

More important, however, is the extent to which it will be acceptable to open Taiwan’s expertise on the semiconductor industry to China. Taiwan is a world leader in the industry, with a large number of expert employees. It surpasses China now, but moving these experts and their knowledge across the Taiwan Strait could quickly change that. There is also the interest of the US in controlling exports to specific countries, including China.

At the same time, the Straits Exchange Foundation chairman is expected to pursue “common party” policy with China, though the timing is not clear. Should it be discussed, the purpose would be to create a free-trade agreement, liberalize cross-strait trade and develop an economic coordination system that will establish economic integration and help protect Taiwanese business interests in China. The latter would be similar to that of Beijing and Hong Kong, and could cause problems within Taiwan.

It seems that every day there are reports of Ma or other government leaders promising that more changes will be made toward China, mainly economically but also politically. Many of these ideas are being voiced by those who believe they will gain from the changes, but the government also believes moving closer to China would be best for Taiwan. But there are also reports that moving in that direction may not be best for Taiwan for a variety of reasons. At the same time, economic conditions worldwide are causing countries to tighten their own economic policies, including China and the US.

Under these circumstances, is it wise to move forward and make agreements with China on matters that will be changing continuously?

Nat Bellocchi is a former chairman of the American Institute in Taiwan and a special adviser to the Liberty Times Group. The views expressed in this article are his own.