Cable Viewer

Currently released so far... 25416 / 251,287

### Articles

Brazil Sri Lanka United Kingdom Sweden 00. Editorial United States Latin America Egypt Jordan Yemen Thailand

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05 2011/06 2011/07 2011/08
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28 2011/04/29 2011/04/30
2011/05/01 2011/05/02 2011/05/03 2011/05/04 2011/05/05 2011/05/06 2011/05/07 2011/05/08 2011/05/09 2011/05/10 2011/05/11 2011/05/12 2011/05/13 2011/05/14 2011/05/15 2011/05/16 2011/05/17 2011/05/18 2011/05/19 2011/05/20 2011/05/21 2011/05/22 2011/05/23 2011/05/24 2011/05/25 2011/05/26 2011/05/27 2011/05/28 2011/05/29 2011/05/30 2011/05/31
2011/06/01 2011/06/02 2011/06/03 2011/06/04 2011/06/05 2011/06/06 2011/06/07 2011/06/08 2011/06/09 2011/06/10 2011/06/11 2011/06/12 2011/06/13 2011/06/14 2011/06/15 2011/06/16 2011/06/17 2011/06/18 2011/06/19 2011/06/20 2011/06/21 2011/06/22 2011/06/23 2011/06/24 2011/06/25 2011/06/26 2011/06/27 2011/06/28 2011/06/29 2011/06/30
2011/07/01 2011/07/02 2011/07/04 2011/07/05 2011/07/06 2011/07/07 2011/07/08 2011/07/10 2011/07/11 2011/07/12 2011/07/13 2011/07/14 2011/07/15 2011/07/16 2011/07/17 2011/07/18 2011/07/19 2011/07/20 2011/07/21 2011/07/22 2011/07/23 2011/07/25 2011/07/27 2011/07/28 2011/07/29 2011/07/31
2011/08/01 2011/08/02 2011/08/03 2011/08/05 2011/08/06 2011/08/07 2011/08/08 2011/08/09 2011/08/10 2011/08/11 2011/08/12 2011/08/13 2011/08/15 2011/08/16 2011/08/17 2011/08/18 2011/08/19 2011/08/21 2011/08/22 2011/08/23

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1985/03 1985/05 1985/06
1986/05 1986/08 1986/12
1987/06
1988/01 1988/03 1988/04 1988/07 1988/08 1988/09 1988/12
1989/01 1989/06 1989/12
1990/01 1990/07 1990/08 1990/10
1991/05 1991/06 1991/07 1991/11
1992/01 1992/03 1992/06 1992/09 1992/11 1992/12
1993/01 1993/02 1993/04 1993/10 1993/12
1994/05 1994/11 1994/12
1995/01 1995/04 1995/06 1995/11
1996/07 1996/08 1996/09 1996/11
1997/02 1997/03 1997/05 1997/06 1997/08 1997/10 1997/11 1997/12
1998/05 1998/12
1999/01 1999/09 1999/12
2000/04 2000/05 2000/06 2000/09 2000/11 2000/12
2001/02 2001/03 2001/04 2001/05 2001/06 2001/07 2001/09 2001/10 2001/11 2001/12
2002/01 2002/02 2002/03 2002/04 2002/06 2002/07 2002/08 2002/09 2002/11 2002/12
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### 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
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Alexandria Consulate Adana American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Belfast Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chiang Mai Consulate Chennai Consulate Chengdu Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai Consulate Dhahran
Embassy Freetown Consulate Fukuoka
Embassy Guatemala Embassy Gaborone Consulate Guayaquil Consulate Guangzhou Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Hong Kong Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Izmir Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Kolkata Consulate Karachi
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy Libreville Embassy La Paz Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Mission Geneva Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maseru Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Melbourne Consulate Matamoros
Embassy Nouakchott Embassy Nicosia Embassy Niamey Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Nuevo Laredo Consulate Naples Consulate Naha Consulate Nagoya
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Of Spain Embassy Port Louis Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito Consulate Quebec
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sapporo Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana Consulate Thessaloniki
USUN New York USEU Brussels US Office Almaty US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE UN Rome Embassy Ulaanbaatar
Embassy Vilnius Embassy Vientiane Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### 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
ASEC AEMR AMGT AR APECO AU AORC AJ AF AFIN AS AM ABLD AFFAIRS AMB APER AA AE ADM ACOA AID ASEAN AMED AORG APEC AY AL AGOA ATRN AG ALOW AND ADB ABUD ASPA ADPM ADANA AFSI ARABL ADCO AFSN ACABQ AO ANARCHISTS AZ ANET AMEDCASCKFLO AADP AGRICULTURE AINT ARR ARF AINF APRC AFSA AX AINR AODE APCS AROC AGAO ASUP AIT ARCH AEMRASECCASCKFLOMARRPRELPINRAMGTJMXL AMEX ARM AQ ATFN AMBASSADOR ARAS ACBAQ AC AOPR AREP ASIG ASEX ASCE AER AGR AVERY ASCH AEMRS AFU AMG ATPDEA ASECKFRDCVISKIRFPHUMSMIGEG AORL AN AGMT ACS AMCHAMS AECL AUC AFGHANISTAN ACAO
BR BB BG BEXP BY BA BRUSSELS BU BD BK BL BE BMGT BO BTIO BX BC BH BM BN BAIO BUSH BRPA BILAT BF BOEHNER BOL BIDEN BP BURNS BBG BBSR BT BWC BEXPC BTIU
CPAS CA CASC CS CBW CIDA CO CODEL CI CROS CU CH CWC CMGT CVIS CDG CG CF CHIEF CJAN CBSA CE CY CB CW CM CHR CD CT CTERR CVR CDC CN CONS CR CAMBODIA CACS COUNTRY CFIS CONDOLEEZZA CEN CZ CLEARANCE CARICOM COM CICTE CYPRUS CITES CV CBE CMGMT COE CIVS CFED COUNTER CAPC COPUOS CARSON CTR CKGR CLINTON COUNTERTERRORISM CITEL CQ CSW CIC CITT CARIB CAFTA CACM CDB CJUS CTM CAN CAJC CONSULAR CLMT CBC CIA CNARC CIS CEUDA CHINA CAC CL
DR DJ DB DA DHS DAO DCM DO DEFENSE DK DOMESTIC DISENGAGEMENT DAC DOD DCG DE DOT DPRK DEPT DEA DOE DTRA DS DEAX
ECON ETTC EFIS ETRD EC EMIN EAGR EAID EFIN EUN ECIN EG EWWT EINV ENRG ELAB EPET EN EAIR EUMEM ECPS ES ELTN EIND EZ EU EI ER ET EINT ENGR ECONOMIC ENIV EFTA ESTH EET EUREM ENV EAG EAP ECONOMY ELECTIONS ETRO ECIP EPEC EXIM ERNG ENERG ED EREL ELAM EK EDEV ENGY ETRDEC ECCT EPA ENGRD ECLAC ETRAD ENVR ELTNSNAR ELAP ETRC EPIT EDUC EFI EEB EETC EIVN ETRDEINVECINPGOVCS ETRDGK ENVI EXTERNAL ELN EAIDS ECOSOC EDU EPREL EINVEFIN EAGER ECA ETMIN EIDN EINVKSCA EFINECONCS ETC EINN EXBS ECONOMICS EIAR EINDETRD ECONEFIN EURN ETRDEINVTINTCS EFIM EINVETC ECONCS EDRC ENRD EBRD ETRA ESA EAIG EUR EUC ERD ETRN EINVECONSENVCSJA EEPET EUNCH ESENV ENNP ECINECONCS ETRDECONWTOCS ECUN
FR FI FOREIGN FAO FARM FARC FAS FJ FREEDOM FINANCE FBI FTAA FM FCS FAA FTA FK FT FAC FDA FINR FOR FOI FO FMLN FISO
GM GERARD GT GA GG GR GTIP GE GH GY GB GJ GLOBAL GEORGE GCC GC GV GAZA GL GOV GOI GF GTMO GANGS GAERC GZ GUILLERMO GASPAR
HR HA HYMPSK HO HK HUMAN HU HN HHS HUD HUMANR HSTC HURI HILLARY HI HUM HEBRON HUMOR
IZ IN IAEA IS IMO ILO IR IC IT ITU IV IMF IBRD IWC IPR IDB ID IRAQI ISRAELI ITALY ITPGOV ITALIAN IADB ICAO ICRC INR ICJ ICCAT IFAD IO ITRA INL IAHRC IRAQ INMARSAT INRA INTELSAT INTERNAL ILC IRS INDO IIP IND IEFIN IQ ISCON ICTY IA INTERPOL IEA INRB ISRAEL IZPREL IRAJ IF ITPHUM IL IACI IDA ISLAMISTS IGAD ITF INRO IBET IDP ICTR IRC
JA JO JM JP JOHN JUS JN JAMES JOSEPH JOHNNIE JML JIMENEZ
KMDR KPAO KOMC KNNP KFLO KDEM KSUM KIPR KFLU KE KCRM KJUS KAWC KZ KSCA KDRG KCOR KGHG KPAL KTIP KMCA KCRS KPKO KOLY KRVC KVPR KG KWBG KTER KS KN KSPR KWMN KV KTFN KFRD KSTH KISL KGIC KSEP KFIN KTEX KTIA KUNR KCMR KMOC KCIP KTDB KBIO KSAF KU KHIV KNNNP KSTC KNUP KIRF KIRC KNUC KHLS KTDD KMPI KIDE KMFO KSEO KJUST KPIR KIVP KICC KCFE KSCS KGLB KPWR KCUL KPOP KPALAOIS KR KTTB KCOM KESS KWN KCSY KREL KTBT KRFD KFLOA KPOL KIND KBCT KSKN KOCI KHUM KPRP KREC KICCPUR KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KGIT KMCC KPRV KAUST KPAS KPAOPREL KIRP KLAB KHSA KPAONZ KICA KCRIM KHDP KNAR KSAC KCRCM KINR KGHA KIIP KPAOY KTRD KTAO KWAC KACT KSCI KNPP KMRS KNNPMNUC KBTS KERG KLTN KTLA KNDP KO KAWK KVRP KPOA KVIR KENV KAID KX KRCM KFSC KCFC KNEI KCHG KPLS KFTFN KTFM KLIG KDEMAF KRIM KRAD KBTR KGCC KPA KSEC KPIN KDEV KWWMN KOM KWNM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KRGY KIFR KWMNCS KFPC KPAK KOMS KDDG KCGC KPAI KID KMIG KNSD KWMM
LY LE LABOR LH LAB LTTE LT LO LI LU LA LVPR LG LR LOG
MARR MX MASS MOPS MNUC MCAP MTCRE MRCRE MTRE MASC MY MK MCC MO MAS MG MC MCA MZ MI MIL MU MR MT MTCR ML MN MURRAY MEPP MP MINUSTAH MA MD MAR MAPP MOPPS MTS MLS MILI MEPN MEPI MEETINGS MERCOSUR MW MIK MAPS MV MILITARY MARAD MDC MACEDONIA MASSMNUC MUCN MEDIA MQADHAFI MPOS MPS
NZ NATO NI NO NU NG NL NPT NS NSF NP NA NANCY NRR NATIONAL NASA NC NDP NIH NIPP NK NSSP NEGROPONTE NGO NAS NE NATOIRAQ NR NAR NZUS NARC NCCC NH NSG NAFTA NEW NT NUIN NOVO NATOPREL NEA NSC NV NPA NSFO NW NORAD NPG NOAA
OPRC OTRA OECD OVIP OREP ODC OIIP OPDC OAS OSCE OPIC OMS OEXC OPCW OIE OSCI OFDP OPAD ODPC OCEA ODIP OMIG OM OFFICIALS OEXP OPEC OVIPPRELUNGANU OSHA OSIC OHUM OTR OSAC OBSP OFDA OVP ON OCII OES OCS OIC
PGOV PREL PARM PINR PHUM PM PREF PTER PK PINS PBIO PHSA PE PBTS PA PL POL PAK POV POLITICS POLICY PKO PNAT PELOSI PP PRE PUNE PALESTINIAN PAS PO PROV PH PLAB PCI PERM PETR PRELBR PETERS PROP PBS POLITICAL PMIL PJUS PG PREZ PGIC PAO PRELPK PGOVENRG PATTY PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PAIGH PROG PMAR PU PTE PDOV PGOVSOCI PY PETER PGOR PBTSRU PRAM PARMS PINL PSI PPA PTERE PREO PERL PGOF PINO PRGOV PORG PS PGVO PKFK PSOE PEPR PDEM PINT PRELP PREFA PNG PTBS PFOR PGOVLO PHUMBA POLINT PGOVE PHALANAGE PARTY PECON PLN PHUH PEDRO PF PHUS PARTIES PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PHUMPREL POGOV PEL PBT PINF PRL PSEPC POSTS PAHO PHUMPGOV PGOC PNR
QA QI
RS RP RU RW RFE RCMP RIGHTSPOLMIL RO ROBERT RM ROOD RICE REGION RGY RELFREE RELAM RSP RF RELATIONS RIGHTS RUPREL REMON RPEL REACTION REPORT RSO
SZ SENV SOCI SNAR SO SP SU SY SI SMIG SYR SA SCUL SW SR SYRIA SNARM SPECIALIST SG SF SENS SEN SENVEAGREAIDTBIOECONSOCIXR SN SC SECRETARY SNA ST SK SL SANC SMIL SCRM SENVSXE SE SAARC STEINBERG SCRS SWE SARS SENVQGR SNARIZ SUDAN SAN SM SIPDIS SFNV SSA SPCVIS SOFA SENVKGHG SHI SEVN SHUM SH SNARCS SPCE SNARN SIPRS
TW TRGY TBIO TSPA TU TPHY TI TX TH TIP TSPL TNGD TS TRSY TC TINT TZ TN TT TR TA TIO TF TK TRAD TNDG TWI TD TWL TERRORISM TL TV TP THPY TO TURKEY TSPAM TREL TRT TFIN TAGS TWCH TBID
UK UNSC UNGA UN US UZ USEU UG UP UNAUS UNMIK USTR UY UNSCR UNRCR UNESCO USAID UNHRC USAU UNICEF UV USPS UNFICYP UNDP UNCITRAL UNHCR UNCSD UNEP USCC UNMIC UNTAC USUN USDA UNCHR UR UNCTAD USGS UNFPA USOAS USNC UA UE UNVIE UAE UNO UNODC UNCHS UNDESCO UNC UNPUOS UNDC UNCHC UNFCYP UNIDROIT UNCND
VM VE VT VZ VEPREL VN VTEG VOA VTIZ VTPREL VISIT VENZ VAT VC VI
WHTI WIPO WTRO WTO WHO WEET WCL WFP WS WHA WA WZ WI WMD WBG WILLIAM WWARD WITH WTRQ WCO WEU WMO WB
XA XX XK XL XM XS XF XR XY XG XT XI XE XW XC XH XD XU XV XB XZ XQ XTAG
YI YM YE YL YMCS
ZU ZI ZOELLICK ZP ZR ZK ZA ZO ZF ZL ZB ZN ZH ZT ZJ ZEALAND ZANU

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 06TAIPEI10, Economic Briefing for December 2005

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. #06TAIPEI10.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06TAIPEI10 | 2006-01-03 22:42 | 2011-08-23 00:00 | UNCLASSIFIED | American Institute Taiwan, Taipei

`

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

` `

    UNCLAS SECTION 01 OF 04 TAIPEI 000010

    SIPDIS

    STATE PLEASE PASS AIT/W AND USTR

    STATE FOR EAP/RSP/TC, EAP/EP

    USTR FOR WINTER AND WINELAND

    USDOC FOR 4420/USFCS/OCEA/EAP/LDROKER
    USDOC FOR 3132/USFCS/OIO/EAP/ADAVENPORT
    TREASURY FOR OASIA/LMOGHTADER
    TREASURY PLEASE PASS TO OCC/AMCMAHON
    TREASURY ALSO PASS TO FEDERAL RESERVE/BOARD OF
    GOVERNORS, AND SAN FRANCISCO FRB/TERESA CURRAN

    E.O. 12958: N/A
    TAGS: EINV EFIN ECON PINR TW ESTH
    SUBJECT:  Economic Briefing for December 2005

    ¶1.  This cable summarizes selected recent economic events in
    Taiwan in December 2005:

    -- Macro Economic Performance
    -- Taiwan-China Integration
    -- Taiwan Banks
    -- New Tax
    -- Finance Reform
    -- Plan to Attract Investment
    -- High-speed Rail
    -- Scientific Cooperation
    -- Avian Influenza

    Macro Economic Performance
    --------------------------

    ¶2.  Taiwan's economy in the second half of 2005 rebounded
    from the impact of higher oil prices and higher interest
    rates that had dampened consumer demand in the United
    States, Japan, and Europe earlier this year.  Y-o-y growth
    in Taiwan exports accelerated from below 5% in May and June
    this year to an average of 14% in October and November.
    Manufacturing production went from a 1% contraction in Q1 to
    y-o-y growth of 4% in Q3, 8% in October, and 10% in
    November.  The service sector, accounting for 73% of
    Taiwan's total GDP, continued to expand in the second half
    of this year.  On the other hand, agriculture, accounting
    for less than 2% of GDP, experienced further contraction
    this year due to bad weather and inability to compete with
    imported products.  The unemployment rate in November
    declined to 3.9%, the lowest since April 2001.  The consumer
    price index in November fell to 2.47%, down from a 7-year
    high of 3.58% in August.

    ¶3.  Both government and private think tanks predict Taiwan's
    economic growth in 2006 will be at or above 4%, based on
    expectations that developed nations will stimulate private
    consumption, and thus increase demand for Taiwan's exports.
    Growth in private investment in Taiwan in 2006 is expected
    to remain below 5% due to over-expansion in 2004.  The
    Academia Sinica is concerned that the alternative minimum
    tax, due to start January 2006, will dampen private
    consumption and investment.  Nevertheless, the Council for
    Economic Planning and Development, Taiwan's official
    economic planning agency, predicts real GDP growth of 4.5%
    in 2006 (predictions from other institutions include 3.3% by
    Global Insight, 4.1% by the World Bank and Asian Development
    Bank, 4.3% by the International Monetary Fund, 4% by Taiwan
    Institute of Economic Research and Chunghua Institution for
    Economic Research, 4.1% by the Directorate General of
    Budget, Accounting and Statistics (DGBAS), and 4.25% by
    Academia Sinica).  The DGBAS, Taiwan's official statistical
    agency, predicts per capita GNP will reach US$15,623 in
    ¶2006.

    China Replaces USA as 2nd Major Source of Imports
    --------------------------------------------- ----

    ¶4.  Taiwan's rapidly growing economic integration with China
    has led to China surpassing the United States as Taiwan's
    second major source of imports.  In September 2005 Taiwan's
    imports from China totaled US$1,643 million, for the first
    time exceeding the US$1,569 million of imports from the
    United States.  The gap broadened in October to US$1,774.3
    million from China versus US$1,689.7 million from the United
    States.  (Cross-strait trade statistics from the Bureau of
    Foreign Trade are currently available only through October
    2005.)  Taiwan's total imports have grown by double-digit
    rates over the past four years while imports from the United
    States have experienced a y-o-y decline for the past six
    months.  China replaced the United States as Taiwan's major
    export destination in 2002.  The percentage share of exports
    to China has steadily increased from 19.6% in 2001 to 28% in
    September 2005.  Meanwhile, the share of exports to the
    United States steadily fell from 22.5% to 14%.  The gap will
    continue to broaden as Taiwan manufacturing firms increase
    production in China.

    Improvement in Taiwan Banks
    ---------------------------

    ¶5.  Taiwan banks significantly improved their financial
    standing in November 2005.  Efforts to write-off bad debt
    and sell problem assets contributed to a decline of NT$29.3
    billion in non-performing loans (NPL) in November to
    NT$425.8 billion, 36% below a year ago.  Average NPL ratios
    in November dropped to 2.61%, down from nearly 12% in March
    2002, 4.35% in November 2004 and 2.81% in October 2005.  The
    number of local banks reporting NPL ratios above the 5%
    limit set by the Financial Supervisory Commission (FSC) in
    November 2005 fell to five from 29 a year earlier, and among
    the five, only three reported capital adequacy ratios below
    the FSC minimum requirement of 8%.  One of the three
    (Business Bank of Hualien, BBH) was sold to Nassau Inn for
    NT$1,000 million (US$30 million) on November 28.  Nausau is
    expected to improve and sell BBH rather than to hold and
    manage it.

    ¶6. In November 2005, seven of the nine remaining state-
    controlled banks reported declines in NPL ratios.  The
    exceptions were Bank of Taiwan's NPL ratio in November
    increased to 1.61% from 1.53% in October, and Huanan
    Commercial Bank's remained unchanged at 1.80%.  Changhwa
    Commercial Bank wrote off NT$32.1 billion of bad debt in
    November, resulting in a drastic drop in its NPL ratio from
    5.36% in October to 1.76% in November.  Taishin Financial
    Holding replaced the Ministry of Finance to become the
    largest shareholder in September 2005.  The November NPL
    ratios of the four other state-controlled banks together
    with their October figures in parentheses are as follows:
    --Land Bank of Taiwan: 3.34 (3.44%)
    --Cooperative Bank of Taiwan: 3.21% (3.33%)
    --Huanan Commercial Bank: 2.27% (2.31%)
    --Business Bank of Taiwan: 4.57% (4.60%)

    Legislation of Alternative Minimum Tax
    --------------------------------------

    ¶7.  On December 9, Taiwan passed a tax reform bill
    establishing an alternative minimum tax mechanism (AMT),
    Taiwan's first new tax in 20 years.  The AMT will affect
    only businesses with annual income above NT$2 million and
    individuals with annual income above NT$6 million.  The AMT
    tax rate will be 20% for individuals and 10 - 12% for
    businesses.  The AMT will affect only about 0.3% of
    individual taxpayers and 0.9% of business firms, but will
    have a disproportionate impact on high-tech industries
    because of the tax exemptions they currently enjoy.
    Business leaders warn that the AMT may prompt further
    industrial relocation offshore and emigration of high-income
    people.  The tax has broad popular support.  Senior
    executives from some of Taiwan's leading information
    technology (IT) companies have publicly supported expanding
    taxation to high-tech firms.  They believe that Taiwan's
    industry is well able to absorb what they perceive to be a
    fairly modest tax increase.

    Progress in Second Stage of Finance Reform
    ------------------------------------------

    ¶8.  In spite of strong resistance from labor unions and
    opposition legislators, Taiwan has accomplished two of the
    three goals for 2005 set in its second stage of financial
    reform.  The goal not attained was that of selling
    controlling interest in a state-owned bank to foreign
    investors.  Nevertheless, the MOF sold 22.5% of equity in
    Changhwa Commercial Bank to Taishin Financial Holding in
    July 2005. The Taiwan Development and Trust Company
    retreated from the banking sector in January 2005 by selling
    its banking department to Jihsun International Commercial
    Bank.  The MOF merged seven state-owned banks into three in
    Q4 2005, reducing the number of state-owned banks to six
    (i.e., Bank of Taiwan (BOT), Mega Commercial Bank (MCB),
    Cooperative Bank of Taiwan (CBT), Land Bank of Taiwan, First
    Commercial Bank, and Huanan Commercial Bank).  The three
    merger cases are as follows:

    -- On November 8, Cooperative Bank of Taiwan (CBT) announced
    its merger with Farmers Bank of China (FBC).  The merger of
    these two banks will make CBT the third largest bank with a
    market share of 10% in assets.

    -- On November 17, Bank of Taiwan (BOT) announced it would
    take over the banking department of the Central Trust of
    China.  This acquisition will increase the BOT's market
    share to 11.59% in assets, the largest among local banks.

    -- In October, the Mega Financial Holding Company (MFHC)
    decided to merge its two subsidiary banks (i.e.,
    International Commercial Bank of China and Chiao Tung Bank)
    into Mega Commercial Bank (MCB) in March 2006.  The MFHC
    announced on December 16 it had acquired 26% equity in
    Business Bank of Taiwan (BBT) and will merge BBT into MCB
    over the next three years.  The merger will make MCB the
    second largest bank with market share of 10.89% in assets.

    EY Revitalization Plan to Attract Investment
    --------------------------------------------

    ¶9.  On November 28, 2005, Taiwan's Executive Yuan (EY)
    announced six measures to encourage "traditional"
    industries (non-high-tech) to invest in Taiwan.  The
    measures target Taiwan firms that have invested in
    China.  The EY hopes these measures will boost
    investment in Taiwan by NTD 137 billion (about USD 4
    billion).  The measures include funding for subsidized
    rents in industrial parks, expansion of existing
    industrial parks, low-interest financing for investors,
    converting two industrial parks into free trade zones,
    and permitting additional employment of foreign workers
    by firms in labor-intensive industries.  Some observers
    have pointed out that the new alternative minimum tax
    (see para 7) will counteract some of the benefits that
    these six measures are intended to create.
    MOTC Considering Buying High-Speed Rail
    ---------------------------------------

    ¶10.  On December 26, the Ministry of Transportation and
    Communications (MOTC) Minister Lin Ling-san confirmed
    that the Taiwan government was considering buying the
    build-operate-transfer (BOT) high-speed rail project
    now underway.  Also on December 26, MOTC released a
    report on the financial situation of the Taiwan High-
    Speed Rail Corporation (THSRC).  The report indicated
    that the one-year postponement of the high-speed rail's
    inauguration would raise the total cost of the project
    by NT$ 14 billion (about USD 426 million) to NT$ 480
    billion (USD 14.6 billion).  MOTC estimated that THSRC
    needed to raise at least NT$ 65 billion (USD 2 billion)
    in additional capital to complete the project, twice
    previous estimates.

    Scientific Cooperation
    ----------------------

    ¶11.  AIT/ESTH participated in an NSF-Taiwan NSC discussion
    of Taiwan's participation in the Atacama Large Millimeter
    Array (ALMA) project to build an array of 50 radio
    telescopes in the Atacama Desert of Chile.  Taiwan will
    provide about $30 million funding for the project over a ten-
    year period, enough for two or three of the telescopes.  A
    letter of intent was signed at the end of the visit by the
    NSF staff with the proviso that AIT and TECRO should sign an
    agreement on the matter before funding is committed.

    U.S. Companies Prepare for Avian Influenza
    ------------------------------------------

    ¶12.  On December 16, Corning Company Taiwan gave an Avian
    Influenza (AI) presentation to Amcham which focused on the
    lessons Corning had learned from dealing with the SARS
    outbreak of 2003 on strategies to combat infectious disease
    outbreaks.  Corning said it would rely on local government
    to provide Tamiflu, if needed.  The presentation was an
    indication of the preparations for AI that some U.S.
    companies have made.

    PAAL

`