Monday, October 07, 2013

AP: Pressure Mounts on Ma.... Really?

In a temple procession, a ji tong possessed by the spirit of the god talks to a young man.

AP reports on President Xi of China's remarks that the political issues between China and Taiwan must be resolved and talks could not be indefinitely put off:
Xi’s comments Sunday on the sidelines of the APEC summit meeting in Bali, Indonesia. represented his strongest statement so far on the Taiwan unification issue, which remains a fundamental cause of instability in the western Pacific. China insists that the democratic island be brought under its control, and has threatened force to achieve that goal. The two sides split after a civil war in 1949.
 AP read this as increased pressure on Ma. I don't. Unless it is accompanied by concrete measures, it's just the usual noise that Chinese officials are always making. It sucks that AP reported this as "pressure mounts". So much of the swirling perceptions of China's desire to annex Taiwan are shaped by the media's (selective) hyping and studious neglect. As Jonathon Sullivan of the U of Nottingham pointed out a couple of years ago in a paper on Chen Shui-bian's speeches, Chen basically said all things to all audiences like any seasoned politician, but the international media focused only on a narrow slice of his words. Can we wait and see whether Xi's rhetoric is accompanied by concrete gestures or a sustained campaign of rhetoric before we decide whether the pressure is really mounting?

Meanwhile in both international and local news reports Ma is seen to have been weakened by his astounding attack on the Speaker of his own Party. The KMT did not file an appeal to continue its case against Speaker Wang, as if they knew they would lose again. But many people I know are saying privately: the MaWangMess ain't over yet.
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Saturday, October 05, 2013

KMT no appeal in Wang case

KMT announces it will not appeal in Wang case (UDN). A friend with much legal experience here observes:
....the High Court did not dismiss the KMT's appeal. It heard the appeal and issued a decision upholding the District Court's injunction. Had it dismissed, there would have been no hearing or written judgment. Looks like the KMT has wisely decided not to appeal to the Supreme Court. That means hearings in Wang lawsuit will begin in a month or so. The case will take at least a couple years to wind through the courts, so it look like Wang will survive to complete his term.
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Rainy Saturday Links

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A wasp captures a spider by stinging it.

How many times since the summer began have I put up rainy day links? I can't remember a year wetter than this one. On to the links before they get soaked....
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MaWangMess: Weeklong Blowback Edition

Hengchun gate.

What a week for President Ma "Blowback" Ying-jeou. It opened on Monday with the KMT losing its second court case. The High Court affirmed the district court's decision to reinstate Legislative Speaker Wang Jin-pyng in the Party and in his position. The KMT then declared it would appeal to the Supremes. No matter how well Wang sings "Where did our love go?"  I have some trouble believing that Wang will win there.

I was saying last night how for years I was reading how totally out of touch Ma was said to be but never really believed it. But now... I believe. The revelations of dubiously legal wiretapping, the complete lack of political sense in attacking Wang the declarations of guilt without trial or evidence... surely someone could have foreseen this? Could everyone be so out of touch? I had always thought that even though Ma had been groomed for this position as head of KMT, President, and bearer of its return-to-ZionChina torch, that he had a modicum of flexibility and good political sense, or at least his handlers did --that POV was seriously shaken by his narcissistic behavior during the Morakot disaster three years ago. But looking at his take-no-prisoners, with-me-or-against-me position, I'm seriously wondering if his rise is due in part to his simply being more rigid, more inflexible Chinese bargainer* than everyone else.

And the week ended with the President called to testify. Yes, the Taipei District prosecutors office opened a case against Prosecutor-General Huang for leaking details of the investigation of Wang's alleged influence-peddling. They are processing all the testimony now:
The district prosecutors’ office summoned the four after several lawyers and citizens filed lawsuits against Huang, accusing him of leaking secrets in the Special Investigation Division’s (SID) probe when he briefed Ma on information gathered through wiretapping involving Wang and Democratic Progressive Party caucus whip Ker Chien-ming (柯建銘).

The prosecutors summoned Ma to clarify the details of meetings he had with Huang on Aug. 31 and Sept. 1, five days before Huang called a press conference to accuse Wang of misconduct.

The Taipei District Prosecutors’ Office said Ma was given plenty of time to answer prosecutors’ questions. After the questioning, which was conducted from 8pm to 9:30pm, Ma spent more than 10 minutes reading his testimony before signing it, the office said.
The KMT news organ was reporting that all the testimonies of Ma et al were consistent.

The indignity of the President having to testify on the matter was surely compounded by the fact that there is at the moment no similar humiliation being inflicted on Wang. There is little wiggle room here -- if Wang calling the Justice Minister to get the prosecutors to forego an appeal in a friend's case is influence peddling, then so is the President's listening to improperly leaked information and then acting on it, apparently while acting in concert with the prosecutor's office.

More urgently, Wang's influence peddling -- for which there is no good evidence -- is trivial compared to the democracy-threatening use of prosecutors to eliminate the President's political enemies within his own party. For it is hard to imagine why the prosecutor would come to the President and offer him information like this unless he expected him to use it. Logically, that implies that such an expectation could be formed only if Prosecutor Huang either (1) had never done so before but understood Ma well enough to risk presenting this information or (2) he and the President had danced together before. Readers will have to decide.....

The wiretapping issue isn't dying either. The Control Yuan is opening a long probe of it.

It should also be noted that this affair and its ever-ramifying effect on Ma's presidency was exactly the wrong move if Ma wanted to speed the passage of the destructive services agreement through the legislature. Now everyone is angry, his public support has taken a beating, and any public review of the legislation will be carried through in a thoroughly poisoned atmosphere in which many will be eager to punish the President. Great work, that.

As always in sprawling affairs of this nature, there were light moments this week. UDN, the fanatically pro-KMT paper, scribbled an editorial which hilariously wondered why everyone was focusing on the wiretapping and Ma's behavior when the real issue was Wang's alleged influence peddling. Ma Ying-jeou's sister sent around a nasty text message attacking KMT legislators for not publicly supporting President Ma and excoriating Wang Jin-pyng:
Ma Yi-nan said she wanted the seven to talk to other KMT lawmakers and ask them to come out in support of Ma, who doubles as KMT chairman, in his relentless fight for “matters of principle” in this case.

“I haven’t seen any KMT lawmaker express support [for Ma Ying-jeou] in front of the media, but I honestly believe that we can judge right from wrong in our hearts. The president cannot back out now,” Ma Yi-nan said.
On the serious side, this shows how little support there is for this move outside the Presidential office.  Legislators have to distance themselves from Ma with local elections coming up next year; their supporters at home may feel the impact of the President's ineptitude. I predict that few local political signs will have the President's image on them come next year.

So much more to write..... lots of people are comparing the government shutdown by the Republican Party lawmakers in the house to Ma's obdurate and insensitive behavior, but there is no comparison. Ma hasn't killed anyone and the government here is open for business and people are getting necessary services.

*Win-win bargaining, Chinese definition: "This way I win, and that way I win, and either way, you're an idiot."
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Bank Blues

Out filming with the FTV crew again this weekend.

Bloomberg has an interesting article on the difficulty US financial firms are having with using Taiwan banks to enter the China market and the low value of Taiwan banks...
"Taiwanese banks were attractive to the PE firms because they were seen as having a better chance of expanding into the mainland than international rivals,” Chuang Piyen, a Taipei-based banking analyst at Mega Securities Co., said by telephone on Sept. 30. “Unhealthy banks were targeted because they could be turned around and sold at a good price.”

Carlyle and a partner bought a stake in the Taiwanese lender, which had posted a NT$5 billion loss for 2006 on bad-loan provisions, for $650 million at the end of the next year. The buyout firm holds about 24 percent of Ta Chong, according to the Taipei-based lender’s 2012 annual report.

Since then, Ta Chong has slipped to No. 23 among 39 domestic banks ranked by assets, from No. 21 in 2007.

“We believe the likely M+A within domestic Taiwan in the near future will be at small banks owned by private equity, which are seeking exit strategies,” Jemmy S. Huang, an analyst for JPMorgan Chase + Co. in Taipei, wrote in a note to clients in May. “Pricing will be key.”
The article is quite informative and should be read in its entirety. I hope to have increased coverage of this sector soon...
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Thursday, October 03, 2013

Taiwan the Complicated -- Wrong

Vendors near Mingchuan Station.

This week on Facebook, for some reason people were passing around this completely wrong presentation of Taiwan' status over at Ilha Formosa called Taiwan the Complicated. It's actually a totally pro-KMT view and is a good way to see how people on the pro-China team create a propaganda construct and call it history. Note the opening:
So first thing first, is Taiwan part of China?

That would actually depend on which “China” you are referring to.

Taiwan was occupied by the Dutch (1624-1662) and Spanish (1626-1642) in the 17th century. The Dutch drove the Spanish out of the island in 1642, yet was defeated in 1662 by Koxinga, a remaining general of Ming Dynasty after it was overthrown by the Qing Dynasty. In 1683, the Qing Dynasty defeated the army in rebellion in Taiwan and formally annexed Taiwan in 1684 into the Qing Empire as part of the Fujian province 福建省. Taiwan was upgraded to the status of province in 1885.
There's a minor error; Taiwan became a province of the Qing in 1886, not 1885. The major problem is the answer --actually, it doesn't depend on which China you are referring to; it doesn't belong to either the ROC or the PRC (red text is mine, not Ilha's).

Now look at his next couple of paragraphs:
In 1895, the Qing Empire lost the First Sino-Japanese War and signed the Treaty of Shimonoseki, which ceded Taiwan, the Pescadores, and the eastern portion of the bay of Liaodong Peninsula to the Japanese Empire.
In 1912, the Nationalists overthrew the Qing Dynasty and established theRepublic of China 中華民國 (ROC) with its capital in Nanjing (but moved to Beijing within one year of establishment, and back to Nanjing in 1928). Taiwan and the Pescadores were still colonies of the Japanese Empire at that time.(emphasis Ilha's).
Take a careful look.... what's missing... think... think... yes, that's right. In 1895, after the Manchus ceded Taiwan but before Japan had invaded, the government of Taiwan declared independence. This was a sham declaration but that is not important here. It is almost always left out of pro-China versions of Taiwan history, because one of the claims/arguments of the pro-China crowd is that Taiwan, since it was liberated from Japan, should revert to its former status. Of course, the last status it had was that of an independent state, which was crushed by the Japanese army (Chen and Reisman argue in Who Owns Taiwan: the Search for an International Title that the independence declaration probably impairs any Chinese claim of chain of ownership). Also, of course, even the mere idea of independence is a bad example, the pro-China side thinks. Best not to mention it.

But moving on, we come to bog-standard claims of the pro-China crowd, tell-tale fingerprints of Chinese propaganda, deliberate distortions of the facts of history. Here are the next four paragraphs as they currently stand:
In the Cairo Conference in 1943 held during WWII, one of the three main clauses of the Cairo Declaration was that “all the territories Japan has stolen from China, including Manchuria, Taiwan and the Pescadores, shall be restored to the Republic of China.”
On October 25th, 1945, when the commander-in-chief of Japanese forces on the island signed an instrument of surrender to the Allies in Taipei, the clause was accepted by the Japanese, and Taiwan and its nearby islands were returned under the rule of the ROC.
In 1949, when the Nationalists lost the civil war and retreated to Taiwan, the Communists established the People’s Republic of China 中華人民共和國 (PRC) with its capital in Beijing.
Beginning January 1st, 2013, the Republic of China 中華民國, now on the islands of Taiwan 臺灣, the Penghu islands 澎湖, Kinmen 金門, and Matsu 馬祖, is now officially in its 102nd year of establishment (1912-1945 occupying mainland China, 1945-1949 occupying both mainland China and Taiwan, 1949-present occupying Taiwan).  The people of Taiwan now enjoy a life of prosperity, democracy, and freedom (emphasis Ilha's).
Anytime you read that the Cairo Declaration justifies ROC control of Taiwan, you are reading propaganda. It does not. I explain why in detail here, but the reasons are simple:
  1. Cairo was a wartime agreement between powers, a temporary expedient about what they might do later, subject to change. It has no force in international law.
  2. Even by the standards of the day, territory cannot be handed from one nation to another without the consent of its people. 
  3. None of the powers who drafted Cairo owned Taiwan. Therefore none of them can dispose of the island. And see 2 again.
The US position on Cairo is quite clear and is given in that post above, Cairo was a temporary non-binding agreement subject to revisions in the postwar treaty negotiations. And that is exactly what happened when everyone sat down to talk about who was going to get what in 1951.

If you read Ilha Formosa's presentation you soon note that he claims that...
...the clause was accepted by the Japanese, and Taiwan and its nearby islands were returned under the rule of the ROC.
Both these claims are nonsensical. Japan did not accept the Cairo clause and anyone who has studied the matter knows that Japan retained formal sovereignty until 1952 when the San Francisco Peace Treaty came into effect. The ROC occupied Taiwan as the occupying power under the authority of the wartime allies. It was not getting territory "returned" since it had never owned Taiwan and it did not receive Taiwan from Japan. ROC politicians knew this perfectly well. Consider that after the ROC reps signed the Treaty of Taipei, Minister of Foreign Affairs George Kung-ch'ao Yeh (葉公超) reported to the Legislative Yuan thus:
"The delicate international situation makes it that they [Taiwan and Penghu] do not belong to us. Under present circumstances, Japan has no right to transfer [Taiwan] to us; nor can we accept such a transfer from Japan even if she so wishes." 
Anyone who claims that Japan "returned" Taiwan to the ROC in 1945 is either lying or hasn't done his homework. It's really that simple.

But there is worse yet to come. Go back and see that the presentation jumps immediate from 1949 to the present. As always, the trick is seeing what isn't there.... the San Francisco Peace Treaty, the postwar treaty that determined who got what. Yup, Ilha simply omits it. Neither government of China was permitted to attend. Japan gave up sovereignty over Taiwan, but no recipient was named. Hence, the US position is that the status of Taiwan is undetermined, as readers of this blog are aware, and that is the position of Japan and many other nations. The Treaty of Taipei, which is the peace treaty between Japan and the ROC, is subordinate to the SF Peace Treaty and also does not name the ROC as the recipient of Taiwan's sovereignty. No document with force under international law assigns the sovereignty of Taiwan to the ROC or the PRC.

It's really simple: If you discuss the status of Taiwan and don't discuss the San Francisco Peace Treaty, you're writing propaganda. Further, the claim that Japan returned Taiwan to China is a lie of ROC propagandists, which for whatever reason Ilha Formosa repeats.

There are many other problems with Ilha Formosa's presentation and with the ROC claims in general, but for the sake of space I'll omit them and direct the reader to the Wiki page where they are listed at the bottom. Reader takeaway: if you see the claim that ROC has sovereignty over Taiwan because of Cairo, then you are reading pro-China propaganda. The island of Taiwan belongs to the people of Taiwan, who should have the say about who has sovereignty. Period.
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Taiwan Bike Federation won't let champ ride in Beijing race

Outside Dongshih, Taichung.

Silly -- a chance to display Taiwan as a producer of bikes and cyclists and destination for cycling... instead:
Champion System has been forced to change its planned line up for the Tour of Beijing, which starts on October 11th, after Taiwanese champion Kai Feng has been barred from taking part by his national federation. The five-day Chinese race, which will once again be the closing event of the International Cycling Union (UCI) WorldTour, is one of the biggest events of the year for the Chinese-registered Professional Continental team, and general manager Ed Beamon is clearly angry at having to leave one of his star riders at home for political reasons.

"We were looking forward to having Kai Feng wear his new Taiwan national champion jersey for the first time in Beijing, but the Taiwan Federation has banned his participation and threatened to bar him from any future national team competitions if he joins the team in China's premier event," Beamon said. "I am both saddened and sickened by the provincial pettiness the Taiwan Cycling Federation has displayed.
People often claim that China's desire to annex Taiwan is an esoteric political confrontation that has no real effect on the lives of Taiwanese. I beg to differ.
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Monday, September 30, 2013

MaWangMess: Wang wins another round

Jes' restin'.

AFP reports on Ma taking another blow:
Taiwan's parliamentary speaker scored another victory in the battle for his job Monday after the high court upheld a ruling against his party's decision to expel him over claims of influence-peddling.

Earlier this month, the Taipei district court granted Wang Jin-pyng's request for a provisional injunction against the Kuomintang (KMT) party, allowing him to hold his party membership and therefore continue as speaker.

The party, led by President Ma Ying-jeou, appealed the ruling, but the appeal was thrown out by the high court on Monday.
The KMT said it would appeal to the Supreme Court. Apparently a dozen or so KMT legislators have urged Ma not to appeal:
According to KMT legislator Lo Shu-lei (羅淑蕾), a dozen or so KMT legislators, including Huang Chao-shun (黃昭順), Liao Cheng-ching (廖正井), Lu Hsueh-chang (呂學樟), Hsieh Kuo-liang (謝國樑), Sun Ta-chien (孫大千) and Chen Ken-te (陳根德), decided to write a letter to President Ma after a gathering held last week to discuss the political situation. “During the gathering, we discussed the recent political turmoil caused by the feud between President Ma and Speaker Wang. A couple of days ago, a taxi driver committed suicide. In a letter he left behind, he wrote that he was disappointed with the government for failing to revive the economy and constantly engaging in political infighting. The death of the taxi driver shocked society. During the gathering, the attendees asked me to take the lead to write a letter to President Ma recommending that the KMT withdraw its interlocutory appeal against Wang in order to put an end to the political infighting so that he could concentrate on reviving the economy.
The latest China Times poll had the President at 19%. Though Speaker Wang has not been charged, the Presidential Office continued to insist that he was guilty:
[Presidential spokesman] Lee stated that President Ma Ying-jeou’s insistence on the independence of the judiciary would never change, nor would the President tolerate the fact that the Legislative Speaker had illegally lobbied the Justice Minister and the chief prosecutor of Taiwan Provincial Prosecutors Office in a court case involving the DPP party whip Ker Chien-ming (柯建銘).

Lee stated that there was no gray area in the Wang case.
What will President Ma do if the Supremes don't uphold this political assault on the KMT's own Speaker?

Even more deliciously, the Justice Ministry announced a probe of SID chief Huang, a probe which Ma had to make pro forma noises saying he supported. The SID explains all its wiretapping here. Just accidents and mistakes.

I see no way Ma can ever really recover from this train wreck, except by waiting for time to rehabilitate him. But if Ma can do this, what other accidents await? Ma's rigidity and political ineptitude remind me of another President of the ROC, from several decades ago....

MEDIA MOMENT: AFP hilariously reported:
Ma's approval rating had hit a record low of around 9 per cent earlier this year, before rising to more than 21 per cent in a recent poll.
I guess two weeks ago is "earlier this year." Technically.  The protest against Ma was variously reported: "tens of thousands" in Taipei Times, 5500 in WSJ (police estimates).
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Taichung AmCham Walkathon

The website
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Sunday, September 29, 2013

Ma Confucian Confusion

Tea being picked on the 169 on the flanks of Alishan.

Every year President Ma does this (TT):
Ma, accompanied by Minister of the Interior Lee Hong-yuan (李鴻源), Secretary-General of the Executive Yuan Chen Wei-jen (陳威仁) and Minister of the Education Chiang Wei-ning (蔣偉寧), paid his respects to the Chinese philosopher by burning incense and watching a bayi (八佾) dance.

The dance, a ritual traditionally acted out to pay respect to emperors, was performed by 64 students.

The temple also opened the Lingxing Gate, its main entrance which is usually closed during the ceremony, and arranged for the president to enter the temple via the route traditionally taken by emperors.

Addressing the ceremony after the two-hour ritual, Ma cited the Analects to emphasize the importance of politicians taking a righteous path and said the wisdom in the Analects has been a reference when he was making cross-strait policies.

“The Analects discussed how feudal barons interacted with each other and how they handled politics. I’ve taken the wisdom of the Analects as a reference in my cross-strait policies,” he said.
Note how deeply ideological such an appearance is, and how inflated. By mentioning his cross-strait policies, he reinforces his own Chineseness, and locates his political action with Beijing in that context, as if to say we might disagree, but China endures. One must also ask whether it is appropriate for the president of a democratic society to receive the honors of an imperial authoritarian. I can't help feeling that these behaviors are the actions of a man who is deeply and ideologically rigid and further, totally out of touch with the domestic political situation.

There were protests in Taipei today asking Ma to step down. At one point the protesters broke through the police lines in front of the president's residence.... Ketty Chen posted a reminder on Facebook about what Ma had promised during his inaugural address in 2008:
Taiwan's democracy should not be marred by illegal eavesdropping, arbitrary justice, and political interference in the media or electoral institutions.
As I said then, just take that speech as a 180 degree reversed road map about what is actually going to happen.
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Saturday, September 28, 2013

MaWangMess: Wiretapping Scandal Expands and other goodies

Pigeon cage outside Dongshih.

The papers were reported today that DPP Whip Ker Chien-ming said that the SID was tapping the legislature's switchboard number....
Earlier in the day Legislator Ker Chien-ming, a caucus whip of the opposition Democratic Progressive Party (DPP), told the press he had received notice from the court that the wiretapping of his phones had been discontinued, following his acquittal in a breach of trust case.

The notice listed several numbers that had been under surveillance, including his cell phone number and the Legislative Yuan's switchboard number 0972630235, Ker said.

"Even the parliament was being monitored," Ker said at a press conference at the Legislative Yuan, which was also attended by DPP legislators Wu Ping-jui and Kuan Bi-ling.

.....

Meanwhile, at a separate press conference Saturday morning, acting SID spokesman Yang Jung-chung repeatedly denied Ker's accusation, which was reported in a morning newspaper.

The SID "has never eavesdropped on the switchboard of the Legislative Yuan," Yang said several times. He said 0972630235 is the number of a cell phone used by an individual.

However, Tsai Wei-min, head of the Legislative Yuan's General Affairs Department, told the press the same day that the number has been used by the Legislative Yuan since August 2006 as part of a cost saving system.
Readers may recall that Legislative Speaker Wang Jin-pyng had been publicly accused by the President of influence peddling by calling the Minister of Justice and having him tell the prosecutors not to appeal a not guilty verdict against Ker. The DPP politicians also said that the SID had been monitoring the prosecutor in the Ker case, which the SID admitted. They admitted that they monitored her 12 year old daughter, accidentally, since she was using her mom's phone (SCMP). They then switched to the husband's phone which Lin Hsiu-tao was using, musical phones being a common feature of busy families.

It is striking that no transcript of the alleged phone calls telling the prosecutor to lay off Ker has been produced by the SID, since it has leaked transcripts of Wang Jin-pyng's phone calls. Indeed, the lack of such leaks suggests that no such transcripts exist. This tends to support Wang's claims that he was just comforting Ker and hadn't done anything.

The case has produced, at least for this observer, many moments of delicious blinding hypocrisy. FocusTaiwan ran another piece saying that the KMT's lawyers told the Taiwan High Court that the party would not work out a political compromise in the Wang case...
Asking the KMT to consider a settlement is tantamount to advising the party to "compromise its insistence upon resisting influence peddling in judicial cases and upon defending the core values of democracy and rule of law, which is an independent judiciary," the statement said.
Anyone remember when the judge in the Chen Shui-bian case got switched? Media personalities gathered this week to protest the wiretapping mess in Taiwan

Meanwhile, back in Washington DC the diplomatic core got egg on its face...
Representative to the US, King Pu-tsung (金溥聰), and Taipei Economic and Cultural Representative Office (TECRO) Press Division Director Frank Wang (王億) yesterday apologized over a controversial post on the Washington Post Web site, which describes Legislative Speaker Wang Jin-pyng (王金平) as “former Legislative Speaker.”

Frank Wang said Wang Jin-pyng was the “former Legislative Speaker” in the Washington Post Web site’s readers’ comments column on Sept. 14 and concluded by saying “I’m very glad the [Chinese Nationalist Party] KMT came to resolutely discipline its heavyweight party member.”
Events like this are reminders of how the KMT continues to imagine the State is an appendage of the KMT Party, using the diplomatic corps to comment on and defend what should be an internal matter of the KMT and a domestic politic issue. Note that if they had merely said nothing, or confined themselves to noting in a pro forma fashion how the open political conflict is an indicator of the strength of Taiwan's democracy, they would not now be having to apologize..... this affair continues to be a needless mess entirely the creation of Ma's KMT.... and judging from the comments on Facebook, tomorrow's news will be even funnier.

ADDITIONAL REFS: Jens Kastner with some sensible quotes from John Copper on the MaWangMess.
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Thursday, September 26, 2013

The 1% Government

Taiwan is getting pummeled by several long-term trends  -- the financial liberalization of the late 1980s that brought in big global financial players, to Taiwan's detriment; the shift of factories and investment to China; and governance by the KMT. The trend is clear, as Commercial Times observed in another hard hitting editorial:
According to government statistics, the disposable annual income of people aged below 30 averaged only NT$366,000 (US$12,388) in 2012, lower than NT$380,000 in 1999.

In 2012, the starting monthly salaries for bachelor's degree holders averaged NT$26,000, down from NT$28,000 in 1999. The average starting salary of master's degree holders was NT$31,000, up only slightly from 13 years ago, when the average salary was NT$30,000.

There is an obvious trend in which wealth is concentrated in the hands of the older generations.

In 2010, 75 percent of residential properties in Taiwan were owned by people aged 45 or older, with homeowners younger than 35 accounting for only 8 percent. Many of these young homeowners are believed to have obtained financial support from their parents. In other words, the situation for young people is even worse than it appears.
This wealth gap between generations, as this Commercial Times points out, is cushioning the blow this brutal economy is giving the young. Meanwhile the KMT continues to serve the big money -- still no real stock tax, no change in the land tax (here), and now the premier wants to chain the minimum wage to the consumer price index (CPI), essentially freezing it at the current low level for the next few years:
Premier Jiang Yi-huah (江宜樺) yesterday decided that beginning next year, the minimum wage will be contingent on growth in the consumer price index (CPI), a policy drawing severe criticism from labor groups.

With a threshold of a cumulative CPI growth of 3 percent or higher needed before the minimum wage will be reviewed, “it is highly likely that the basic wage levels will remain stagnant in the remaining three years of President Ma Ying-jeou (馬英九) tenure,” Taiwan Labor Front secretary-general Son Yu-lian (孫友聯) said.
This means that the government can hold wages down without appearing to, simply by lowballing the CPI. Theoretically, wages will always remain the same relative to prices, which means that laborers will never be able to capture a larger share of the pie, at least while the Ma government is in office. Since 2007 and especially since the Ma Administration came to power, wages have regressed while productivity has boomed. Taiwan's gap between CPI changes and wage changes was the highest in the world in 2010. The Ma government wants to freeze this historically anomalous situation and treat it as the norm. The struggle for control of Taiwan between the pro-China and pro-Taiwan sides really masks the brutal and ongoing defeat of Taiwanese workers economically; it enables both parties to enlist workers on their side via their tribal social identities while screwing them out of their rightful livelihood.
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Saturday, September 21, 2013

Links for a Slow Typhoon Day

I know you must be trapped indoors on this ugly typhoon day -- no rain here yet in central Taiwan so far. So enjoy some links....


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Friday, September 20, 2013

Windy, Soggy, Gigantic Usagi to smack Taiwan...

Now upgraded to the year's biggest typhoon. Oh boy. The South is going to get slammed.
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BLAST FROM THE PAST: Globe and Mail, 1982

A friend sent this around, in case you were wondering what the official US stance on Taiwan is....

The Globe and Mail (Canada)
July 19, 1982 Monday
AROUND THE WORLD China warns Shultz
BYLINE: GAM
LENGTH: 82 words
DATELINE: Peking CHINA

PEKING - China told U.S. Secretary of State George Shultz yesterday that the Reagan Administration would sabotage Sino-U.S. relations if it bowed to pressure from Washington's Taiwan lobby. The official People's Daily newspaper accused Mr. Shultz of contradicting himself during his Senate confirmation hearings last week, quoting him as saying that the United States never formally recognized Chinese sovereignty over Taiwan, but as acknowledging at the same time that there was only one China.

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