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Viewing cable 09AITTAIPEI717, Penghu in Lead to Open Taiwan's First Casino

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Reference ID Created Released Classification Origin
09AITTAIPEI717 2009-06-16 09:36 2011-08-23 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY American Institute Taiwan, Taipei
VZCZCXYZ0000
PP RUEHWEB

DE RUEHIN #0717 1670936
ZNR UUUUU ZZH
P 160936Z JUN 09 ZDK
FM AIT TAIPEI
TO SECSTATE WASHDC PRIORITY 1765
UNCLAS AIT TAIPEI 000717 
 
INFO CHINA POSTS COLLECTIVE 
AMEMBASSY BANGKOK 4505 
AMEMBASSY CANBERRA 5142 
AMEMBASSY HANOI 3716 
AMEMBASSY JAKARTA 4418 
AMEMBASSY KUALA LUMPUR 4061 
AMEMBASSY MANILA 0709 
AMEMBASSY PHNOM PENH 0722 
AMEMBASSY RANGOON 0541 
AMEMBASSY SEOUL 9981 
AMEMBASSY SINGAPORE 7562 
AMEMBASSY TOKYO 0475 
AMEMBASSY VIENTIANE 0187 
AMEMBASSY WELLINGTON 2344 
AMCONSUL CHIANG MAI 0612 
AMCONSUL HO CHI MINH CITY 0469 
AMCONSUL SURABAYA 0062 
DEPT OF COMMERCE WASHINGTON DC 
DEPT OF TREASURY WASHINGTON DC 
 
STATE FOR EAP/TC 
STATE PASS USTR FOR STRATFORD AND ALTBACH 
COMMERCE FOR 4431/ITA/MAC/AP/OPB/TAIWAN 
TREASURY FOR OASIA/MPISA AND CWINSHIP 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD PGOV TW
SUBJECT: Penghu in Lead to Open Taiwan's First Casino 
 
Reference: Taipei 44 
 
1. (SBU) Summary: Penghu County recently submitted an application to 
the Executive Yuan (EY) to establish a casino on the island, and 
will hold a legally-required referendum on the issue in August.  The 
Ministry of Transportation and Communication (MOTC) will soon 
establish an interagency casino committee that will, in August, 
begin drafting casino-related laws and implementing regulations. End 
summary. 
 
Background 
---------- 
 
2. (SBU) On 12 January, the Legislative Yuan (LY) passed amendments 
to Taiwan's Offshore Islands Development Act to allow casinos on 
islands such as Penghu, Kinmen, Matsu, or Orchid Island (reftel). 
The amended Act requires casinos to be located within international 
resorts, which also must include an international hotel and other 
tourism and conference facilities.  In order to open a casino, the 
county or city in which the casino would be located must first hold 
a referendum, and over fifty percent of participating voters must 
approve the referendum. To avoid a monopoly, the authorities will 
likely issue two casino licenses, both of which will probably be 
located on the same offshore island. 
 
3. (SBU) On May 29, the Penghu County Magistrate's office submitted 
an application to the EY to establish a casino on the island. 
Penghu Tourism Bureau Director Hong Dong-lin recently told AIT/K 
 
Chief that Penghu plans to hold the required referendum on the issue 
in August. 
 
Recent Developments 
------------------- 
 
4. (SBU) On June 15, Wang Chih-hui, Chief of Sectoral Planning at 
the Council for Economic Planning and Development (CEPD), told 
econoff the EY has assigned the Ministry of Transportation and 
Communication (MOTC) with drafting implementing regulations and 
statutes related to casino operation.  The implementing regulations, 
which will govern the size, location, and other aspects of possible 
casinos, will not need legislative approval. The statutes, however, 
which regulate casino operations and management, will need LY 
approval. 
 
5. (SBU) According to Wang, the MOTC plans to quickly establish a 
Casino Consultative Committee (CCC) comprising experts from the 
MOTC, the Ministry of the Interior (MOI), the Ministry of Economic 
Affairs (MOEA), the Financial Services Committee (FSC) and the 
Council of Labor Affairs (COLA). Wang said that in late June, MOTC 
will hire an international consulting firm to produce a report on 
Taiwan's "integrated resort" market.  The CCC will then use this 
report as a basis for drafting the casino-related regulations and 
statutes. 
 
Comment 
------- 
 
6. (SBU) According to our sources at CEPD and MOTC, the Taiwan 
authorities would like to issue two casino licenses, preferably on 
one offshore island, in order to avoid having one casino monopolize 
the Taiwan gambling market.  Although media polling suggests 70 
percent of Kinmen's residents support establishing a casino on 
Kinmen, the Kinmen authorities have no plans to hold a referendum on 
the issue.  Therefore, at this point Penghu looks like the likeliest 
site of Taiwan's first--and second--casino. End comment. 
 
YOUNG