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### Viewing cable 06TAIPEI4057, Business and Other Associations Stay Neutral on Tight

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06TAIPEI4057 | 2006-12-05 09:07 | 2011-08-23 00:00 | UNCLASSIFIED | American Institute Taiwan, Taipei

`

    VZCZCXRO6325
    RR RUEHCN RUEHGH
    DE RUEHIN #4057/01 3390907
    ZNR UUUUU ZZH
    R 050907Z DEC 06
    FM AIT TAIPEI
    TO RUEHC/SECSTATE WASHDC 3349
    INFO RUEHBJ/AMEMBASSY BEIJING 6049
    RUEHKO/AMEMBASSY TOKYO 8275
    RUEHGP/AMEMBASSY SINGAPORE 6713
    RUEHUL/AMEMBASSY SEOUL 8304
    RUEHGH/AMCONSUL SHANGHAI 0604
    RUEHCN/AMCONSUL CHENGDU 1566
    RUEHSH/AMCONSUL SHENYANG 5541
    RUEHGZ/AMCONSUL GUANGZHOU 9790
    RUEHHK/AMCONSUL HONG KONG 7271

` `

    UNCLAS SECTION 01 OF 02 TAIPEI 004057

    SIPDIS

    SIPDIS

    DEPT PASS AIT/WASHINGTON
    DEPT FOR EAP/TC, INR/EAP

    FROM AIT KAOHSIUNG BRANCH OFFICE

    E.O. 12958: N/A
    TAGS: PGOV PREL SCUL TW
    SUBJECT: Business and Other Associations Stay Neutral on Tight
    Kaohsiung Mayoral Race

    SENSITIVE BUT UNCLASSIFIED.  PLEASE PROTECT ACCORDINGLY.

    ¶1.  (SBU) Summary:  Professional associations, business groups, and
    unions in Kaohsiung are choosing to remain neutral rather than risk
    backing a potential loser in the tight mayoral race between KMT
    Candidate Huang Chun-ying and DPP Candidate Chen Chu on December 9.
    Some AIT/K contacts suggest that corruption allegations against
    President Chen and his family are weighing heavily on Chen Chu's
    prospects in the December 9 election.  End Summary.

    Teachers Learn Hard Lessons from the Past
    -----------------------------------------

    ¶2.  (SBU) The 9000-member Kaohsiung Teachers' Association is
    reluctant to openly endorse a candidate in the still neck and neck
    December 9 Kaohsiung mayoral election, although it has traditionally
    affiliated itself with the Democratic Progressive Party (DPP).  The
    Chairman told AIT/K that the Association learned a "hard lesson"
    eight years ago after several candidates they publicly backed in
    city council and legislative elections were ensnared in bribery
    scandals once elected.  Since then, the Association has chosen not
    to back individual candidates, instead preferring to provide members
    with the results of surveys that it conducts on candidates' views
    and policies on matters of interest to the Association.

    ¶3.  (SBU) The Chairman, nevertheless, was quick to praise former
    Kaohsiung City mayor Frank Hsieh (DPP) for taking action on the
    Association's main concerns, including improving the teacher
    retirement system.  While the Association has had less interaction
    with KMT candidate Huang Chun-ying, the Vice Chairman noted that
    then-Deputy Mayor Huang played a significant role 10 years ago in
    helping local teachers establish the Association.  The Association's
    executive secretary stressed that it is very important for all
    teachers and the Association to maintain neutrality because in the
    past politics has had too much influence on Taiwan education policy.

    ¶4.  (SBU) The Chairman lamented that the focus of Kaohsiung's
    mayoral election has shifted from city development to the issue of
    corruption and rivalry between President Chen Shui-bian and KMT
    Chairman Ma Ying-jeou.  Stressing that the Association's main
    concern is with educational reform, the Chairman expressed
    frustration over the failure of Taiwan society to keep politics
    separate from education.

    Political Neutrality as Good Business
    -------------------------------------

    ¶5.  (SBU) Several business and labor leaders recently told AIT/K
    that they also are not planning to endorse a particular candidate
    for Kaohsiung mayor, stressing that maintaining public neutrality is
    their best strategy.  China Steel Union (CSU) Representative Wu
    Shun-tsai said that his union has adopted this stance, but only
    after a proposal to ask members to choose a candidate to support in
    the election proved too controversial.  Wu added that in the past
    the CSU has made financial contributions to legislators who can
    influence issues that impact the Union and its members.

    ¶6.  (SBU) Despite a public display of neutrality, eighty percent of
    Kaohsiung Architects Association members identify ideologically with
    the DPP, Association head Kuo Min-neng recently told AIT/K.  Kuo,
    also a member of the Board of Directors of the city-owned Bank of
    Kaohsiung, noted he had worked closely with former Kaohsiung mayor
    Frank Hsieh, adding that he is concerned DPP candidate Chen Chu
    could lose the election because of President Chen's scandals and the
    Kaohsiung Metro corruption probe.  Despite having "Green"
    credentials, Kuo said that he and his colleagues plan to remain
    publicly neutral because their livelihoods depend heavily on being
    able to work with the government on land use issues.  As a result,
    they have hedged their bets by providing financial support to both
    the DPP and KMT mayoral candidates.

    ¶7.  (SBU) Kaohsiung Computer Association President Henry Wang, also
    a long-time Green supporter, told AIT/K that the election is
    extremely close, predicting that youth and swing voters will play a
    determining factor.  Wang credited Frank Hsieh with improving
    Kaohsiung's image.  He complained that the pan-Blue mass media often
    distorts the DPP's performance, which has a disproportionate impact

    TAIPEI 00004057  002 OF 002

    on the young, who tend to uncritically accept television news
    reports as fact.

    ¶8.  (SBU) Reluctant to endorse one party over another, Kaohsiung
    Industrial Association President Alex Horng told AIT/K that
    Kaohsiung needs an aggressive mayor who has the ability to deliver
    results.  While Association members want a clean and effective
    government, he added, they would prefer a corrupt government that
    can deliver results to one that is ultra-clean but ineffective.  A
    super-clean politician cannot navigate the underworld of Taiwan
    politics, Horng argued, citing the Kaohsiung Metro as an example of
    a project that is nearing completion despite corruption allegations.
     Nevertheless, allegations of President Chen's corruption are an
    embarrassment to Taiwan, Horng observed, and he predicted this issue
    will have a large negative impact on Chen Chu and other DPP
    candidates.

    THIELE

    YOUNG

`