Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 07TAIPEI1370, TAIWAN BUSINESS TELLS AIT FOCUS IS ON CHINA MARKET

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07TAIPEI1370.
Reference ID Created Released Classification Origin
07TAIPEI1370 2007-06-18 06:39 2011-08-23 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY American Institute Taiwan, Taipei
VZCZCXRO7857
RR RUEHGH RUEHHM
DE RUEHIN #1370/01 1690639
ZNR UUUUU ZZH
R 180639Z JUN 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 5671
INFO RUEHBK/AMEMBASSY BANGKOK 3727
RUEHBJ/AMEMBASSY BEIJING 6916
RUEHBY/AMEMBASSY CANBERRA 4537
RUEHHI/AMEMBASSY HANOI 3330
RUEHML/AMEMBASSY MANILA 0081
RUEHGP/AMEMBASSY SINGAPORE 6927
RUEHKO/AMEMBASSY TOKYO 8861
RUEHWL/AMEMBASSY WELLINGTON 1810
RUEHGZ/AMCONSUL GUANGZHOU 0340
RUEHHM/AMCONSUL HO CHI MINH CITY 0100
RUEHGH/AMCONSUL SHANGHAI 1164
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS SECTION 01 OF 02 TAIPEI 001370 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PASS USTR, STATE FOR EAP/TC,USTR FOR STRATFORD AND 
ALTBACH, TREASURY FOR OASIA/LMOGHTADER 
 
E.O. 12958: N/A 
TAGS: ECIN ECON ENIV ETRD PREL TW
SUBJECT: TAIWAN BUSINESS TELLS AIT FOCUS IS ON CHINA MARKET 
 
1. (SBU) Summary:  AIT Director Young hosted AIT Chairman 
Burghardt and USTR del to lunch on June 14 with Taiwan 
business representatives.  As in the past, the businesses 
emphasized their need to be active in the China market in 
order to be globally competitive. They are concerned about 
the prospects for creating jobs in Taiwan and a growing 
wealth gap.  They urged the authorities to pay more attention 
to developing strong services industries.  The hi-tech 
businesses do not anticipate any impact on them from the 
U.S.-Korean FTA.  The businessmen all complained about 
Chinese companies unilaterally altering the terms of existing 
contracts.  End Summary. 
 
2. (U) AIT Director Young hosted a lunch in honor of AIT 
Chairman Raymond Burghardt on June 14.  The visiting USTR 
delegation consisting of Timothy Stratford, Assistant USTR 
and Eric Altbach, Deputy Assistant USTR also attended.  The 
Taiwan guest list of prominent businessmen consisted of 
Morris Chang, Chairman of Taiwan Semiconductor Manufacturing 
(TSMC); Nelson Chang, Vice Chairman, Chia Hsin Cement & 
Chairman of International Community Radio Taipei (ICRT); 
Arthur Chiao, Chairman, Winbond Electronics & Chairman, 
Taiwan Electrical and Electronics Manufacturers Association 
(TEEMA); Frank Huang, Chairman, Powerchip Semiconductor Group 
& Chairman, Taiwan Semiconductor Industry Association (TSIA); 
Jason Lin, Chief Executive Officer of Uni-President Group; 
and Daniel Tsai; Chairman and Co-CEO, Fubon Financial Holding 
Co.  Also attending on the AIT side were Daniel Moore, Chief, 
Economic Section; and Greg Wong; Chief, Commercial Section. 
 
Taiwan Firms Focused on China 
----------------------------- 
 
3. (SBU) All of the Taiwan firms represented at the lunch 
have a large and growing interest in the China market. 
Morris Chang said China's growth rate is very attractive and 
is what makes it necessary for his company to serve the 
market from a small manufacturing presence within China 
rather than strictly from offshore platforms.  He reiterated 
his previous public calls for Taiwan to open up to business 
with China.  Chang noted that his investment in China is 
small relative to TSMC's overall assets, but it isn't a 
market that can be ignored.  Frank Huang of Powerchip, also a 
semiconductor manufacturer like TSMC, observed that though he 
has a license to set up a semiconductor wafer fab in China, 
he is not moving ahead with that just yet.  However, he is 
making certain optical devices in China.  Chang, Huang and 
Winbond's Arthur Chiao (Winbond is also involved in 
semiconductor manufacturing) all noted that Taiwan 
restrictions on technology transfers to China sharply limit 
what they can do in China. 
 
4. (SBU) Chang noted that outside of his hi-tech business and 
Daniel Tsai's banking business, other Taiwan industries had 
little in the way of restrictions on relocating to China.  He 
suggested that Taiwan industries interested in relocating to 
Mainland China had already done so.  Fubon Chairman Tsai 
confirmed that his banking business is completely shut out of 
China due to Taiwan regulations and acknowledged that this 
restriction is a major impediment to growing his banking 
business and developing regional expertise and capability. 
(Note:  Fubon bought a Hong Kong Bank several years ago and 
uses it both to train its staff in international banking 
operations and to provide some banking services in China. 
End Note.) 
 
5. (SBU) Jason Lin said that Uni-President, the 
second-largest seller of instant noodles in China, along with 
a variety of other food products, views China as a very large 
and diverse market.  It must be viewed as at least six 
separate markets, he said, because of the wide-ranging 
differences in tastes in different areas.  For example, the 
people in Chongqing have very different preferences for their 
noodles than do the people in Shanghai.  He emphasized that 
the China market is not "one-size fits all."  (Note: 
Uni-President's business faces little in the way of 
 
TAIPEI 00001370  002 OF 002 
 
 
restrictions on the Mainland, other than the 40% investment 
cap imposed by Taiwan.  End Note.) 
 
6. (SBU) Winbond's Chiao noted that in addition to 
semiconductors, he also runs a steel plant, making mostly 
stainless and other specialty steel, and a cable and wire 
manufacturing businesses.  He said that currently the 
semiconductor business is doing fine, but that the steel side 
of his interests is really growing very rapidly.  He 
attributed most of this rapid growth to demand in China for 
infrastructure projects.  He said he is supplying a great 
deal of cable for bridge construction and wire for 
electricity lines. 
 
Don't Like Some Chinese Practices 
--------------------------------- 
 
7. (SBU) There was a general discussion on the topic that 
Chinese companies unilaterally alter the terms of contracts. 
AUSTR Stratford noted the issue is of concern to U.S. firms 
and the entire table recounted their own version of the 
issue.  Huang suggested that this kind of practice by Chinese 
firms was a factor in his reluctance to put a wafer-fab 
facility in China.  Another example cited was a U.S. marketer 
of television sets having completely shifted production away 
from joint ventures and Chinese firms to using Taiwan firms 
that completely manage the entire manufacturing and 
distribution process.  The U.S. firm had gotten fed up with 
inconsistent quality, delivery and lack of responsiveness by 
Chinese firms. 
 
Economic Problems in Taiwan 
--------------------------- 
 
8. (SBU) Looking to Taiwan's future prosperity, Morris Chang 
said he was most concerned about the need for job creation 
and the growing wealth gap.  He said for his hi-tech 
business, conditions are very good, but that for many in 
Taiwan their prospects are declining, as evidenced by the 
growing wealth gap between the top and bottom earners in the 
economy.  Nelson Chang agreed with this assessment as did 
Frank Huang.  Nelson emphasized the need for creating 
good-quality jobs in Taiwan while Frank Huang observed that 
conditions in southern Taiwan are declining.  He said that 
areas south of Taichung, formerly home to many of the 
industries which have shifted to the Mainland, are 
increasingly difficult places to do business.  When asked 
about operating in the Southern Taiwan Science Park, Huang 
replied that he didn't even want to establish plants there. 
Daniel Tsai suggested Taiwan should pay more attention to 
development of service-sector jobs, noting a government 
effort started in 2004 by the Council for Economic Planning 
and Development (CEPD) had shown little in the way of 
results.  Tsai added that Taiwan should not only focus on 
developing financial services, but also boost development of 
other services industries. 
 
KORUS-FTA 
--------- 
 
9. (SBU) When asked about the potential impact on Taiwan 
firms of the Korean-US Free Trade Agreement, the hi-tech 
representatives immediately said there would be no impact at 
all on them.  There seemed to be general agreement there 
would be little or no impact around the table with the 
notable exception of Jason Lin.  He said of course Taiwan 
should be concerned about the potential impact, though he did 
not specify any direct impact on his own firm's operations. 
COMMENT - These last comments contrast sharply with the 
Taiwan government's strong emphasis in the negative impact of 
KORUS.  Although this is admittedly a small sample, it leads 
to some suspicion that the government's emphasis is more of 
roundabout way to push for their political goal of an FTA 
here, rather than reflecting a strong sentiment within the 
business community. 
YOUNG