Taiwan's man in the middle

Taiwan's Premier Chang Chun-hsiung treads a careful path of diplomacy between superpowers against a background of a declining domestic economy. In this exclusive interview he spoke to GRAHAM REID.

On a daily basis Taiwan politics are a jigsaw puzzle of reports on the economic downturn, the flight of capital, tetchy relations with mainland China, and spectacular stories of corruption being exposed.

A sample of the latter is the indictment of the former speaker of the Legislative Yuan, the legislative body within the government, for fraud. Liu Sung-pan allegedly took kickbacks to the tune of $NT150 million ($10.4 million) which he used to solicit votes for his 1999 contest for the speakership.

With breathtaking gall Liu has conceded he borrowed the amount but added he just hadn't paid it back yet. And in a statement deserving inclusion in any book of political quotations added, "If I hadn't gotten involved in politics I wouldn't be in so much trouble."

Politics and big money became entwined, and corruption endemic, during the 50-plus years rule of the former Kuomintang government, the party which guided Taiwan from military rule to a nascent democracy. But last year it lost legislative power when the Democratic Progressive Party came into government under President Chen Sui-bian.

Among the DPP's first acts was the introduction of bills to root out corruption, and almost every day the media reports yet another case. So far 1222 suspects, not all KMT officials or affiliates, have been prosecuted in cases.

But these are only the frontline stories for the new premier, the likeable Chang Chun-hsiung who, with thick glasses, a beaming smile and quick humour, bears a passing resemblance to David Lange. He sees the achievements of the DPP from a larger geo-political perspective.

The peaceful transition from one party to another is not uncommon in most countries, he says, but because it was unique in Taiwan that must be counted as the achievement of which he is most proud.

With the military "almost affiliated to the KMT" it was critical to see the passage from one government to another pass without incident, and that has happened with "the military and our intelligence all functioning very well in a constitutional system."

And while cross-Strait relations with the mainland remain at a stalemate, he repeatedly reiterates Taiwan's desire for coexistence.

"A peaceful Taiwan Strait is not only good for regional peace but also would be in the interests of the United States and mainland China. So a peaceful Taiwan Strait is not only important to this region but also of importance to the world. I think peace is the language that is spoken, not only in Taiwan but also in New Zealand."

That the mainland has rebuffed or ignored DPP overtures for dialogue is, he acknowledges, disappointing but hostilities which have existed for more than half a century will not be resolved quickly. Patience is a refrain throughout his carefully measured conversation.

And Premier Chang gives the impression of a very patient man in pursuit of a constitutional democratic ideal.

He sweeps into the room apologetically late and, accompanied by a beautifully suited entourage, offers a firm handshake and a warm welcome. Taking time from negotiations with KMT officials to discuss some cross-party accommodation to secure the stability of Taiwan's divided government, he engages in a free-ranging but cautious discussion of the standoff with the mainland, the new administration in the United States and his hopes for New Zealand to support Taiwan's entry into the wider world of global politics.

Chang is a youthful looking 63-year-old lawyer who came into politics when he - along with now-President Chen, the mayor of Kao-hsiung City Frank Chang-ting Hsieh, the Taipei County Magistrate Su Tseng-chang and others - defended a group of dissidents advocating democracy who were put on trial in 1979.

Defying threats from the Taiwan Bar Association that no lawyers should act for the defendants, Chang and 14 other lawyers, including those mentioned, took their place in the courtroom.

It was a courageous stance and led to a life-long friendship between Chen and Chang. Chang was general manager of Chen's presidential campaign last year.

Chang entered legislative politics in 1983 and three years later was one of the architects behind the establishment of the DPP when he defied possible imprisonment in the years of martial law and assisted in drafting the party's charter and helped define its political platform.

In the legislature he urged constitutional reforms which laid the groundwork for a democratic Taiwan and with the election of the DPP last year he moved from the legislature into party administration.

Then, in a series of dizzyingly rapid career changes he became secretary-general in the office of the president, vice premier and then - with the departure of Premier Tang Fei who is now at Harvard University - became premier. He inherited, among other formidable tasks, the work of rooting out corruption.

Although the workload is considerable - he recently observed he had the poorest lifestyle in Taiwan - Chang wears it well. He took as his personal motto: "Treat others with sincerity, work with complete dedication, transcend breakthroughs."

After a little more than a year of DPP minority government - the party's proposed legislation often blocked by alliances of majority opposition in the Legislative Yuan - there have, however, been few breakthroughs to transcend. Least of all with the mainland which has ignored overtures of dialogue with the DPP while seemingly courting favour with its former adversary in Taiwan, the KMT.

Chang diplomatically won't speculate on why China has adopted such a position or how long it will simply watch the DPP's progress, "but the PRC [People's Republic of China] will need to relax their stance on the DPP ... for us to achieve truly peaceful and stable relations [and] the mainland Chinese need to conduct their dialogue with [Taiwan's] central government."

"Before the elections some people thought if the DPP was elected there would be hostility or even tension between the two sides of the Taiwan Strait. But we have repeatedly told the mainland Chinese we want to have stable and peaceful relationships with them and want to replace conflict with negotiation. Although there has not been a situation as we used to wish when we could sit down and talk, at least we have achieved stabilised cross-Strait relations."

In a comment with a subtle subtext which claims moral high ground given China's abysmal human rights record, Chang says that Taiwan is a country that protects minorities and values human rights. Two international human rights covenants are being ratified by Taiwan's Executive Yuan and will also pass into domestic law.

Such moves may endear Taiwan to allies such as the United States, but even here there have been difficulties.

He observes that while the new Bush administration has adopted policies "somewhat different from that of [former US president Bill] Clinton's," Taiwan will maintain its status quo position that Taiwan will not seek independence and mainland China will not use force on Taiwan.

"Although judging from his campaign rhetoric and the statements he has been making lately, Bush may have a very clear strategy [toward China] but he will still have tactics that are ambiguous.

"I think the Bush administration would like the two sides of the Taiwan Strait [to] maintain the status quo, and since the Bush administration has just swung in, their policies and officials are not stable yet, and their policy will still be evolving.

"We also want to see that mainland China and the US maintain peaceful relations, but not at the expense of Taiwan."

The recent approval of defensive military hardware to Taiwan by the US has been in accord with the long-established Taiwan Relations Act and Chang stresses a strong defensive capability is essential for Taiwan's security but that it will not engage in an arms race. Chang acknowledges Taiwan's domestic problems, notably the rise in unemployment and the worldwide economic slowdown which is starting to hit Taiwan badly.

A company could employ 12 people in mainland China and 20 in Vietnam on the wage paid to one Taiwanese worker. This explains the flight of capital investment offshore.

He has prepared a series of policies with a pricetag of $NT810 billion($56.3 billion) to be invested domestically on public infrastructure. He speaks of the knowledge economy as the way of the future and the continued development of IT industries and biotechnology in what is the third largest producer of IT products in the world.

"These challenges are like the pains of labour for me," he smiles. "After the pain we will have a new-born."

As regards what New Zealand, which officially acknowledges the "one-China policy," can do to recognise the aspirations of Taiwan's 23 million people to participate in global politics, he is again discreet. Just as he won't speculate on mainland China's thinking he deftly steps around New Zealand's position, as befits a man who knows how to win friends and influence people.

"I understand that New Zealand would have its own political stance and I would not do anything to alter that, but the balance of power is the key point to maintaining peace.

"There are two factors [that are] very important in Taiwan. One is the self-defence capabilities, and the second is to have its voice in the international community so as to let more people know about the situation in Taiwan.

"So we truly hope that New Zealand will support Taiwan's participation in international organisations such as the World Health Organisation and the World Trade Organisation. And I think the accession of Taiwan into both of those organisations would be beneficial to all the world."

Chang also says he would like to see more exchange of peoples between the two countries, be they cultural or school exchanges, or on trade and economic issues.

Taiwan is a sovereign state, he adds, and he would hope people in New Zealand would want "to support the spirit of democracy and human rights and hold the stance that conflict should not be resolved by force."

And with that Premier Chang Chun-hsiung must go. There are negotiations with the KMT to be had.

But not before another warm handshake, an engaging laugh and a final comment: "You are my best friend from New Zealand."

Ever a man who knows how to win friends and influence people.

* Graham Reid travelled to Taiwan with assistance from an Asia 2000 scholarship.