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Taiwan's pan-blues sing the blues
By Laurence Eyton

TAIPEI - The prospects for Taiwanese President Chen Shui-bian in his re-election battle are looking up - thanks to the opposition, which appears to be snatching defeat from the jaws of victory.

When Taiwan's two main opposition parties, the Kuomintang (KMT) and the People First Party (PFP) - together known as the pan-blues - decided last spring to field a joint presidential ticket, it looked as if Chen was beaten before he started.

Certainly the triumphalist tone of the parties themselves and their supporters in the media suggested as much. Since then the parties' strategic miscalculations, their bizarre policy flip-flops, and lack of openness about skeletons in their closets mean they now must confront the very real possibility of defeat.

And the campaigning for the polls March 20 has turned very unpleasant. A KMT television spot asks: "Like it? Then Daddy will buy it for you." A dueling riposte from Chen's Democratic Progressive Party (DPP): "Like it? Then Daddy will steal it for you."

Originally the KMT and PFP thought they could win at the polls on March 20 by arithmetic alone. In the last election in 2000, the KMT's Lien Chan took 24 percent of the vote. James Soong, now chairman of the PFP but running at the time as an independent, won 36 percent. He had split from the KMT in a fit of pique at having been denied the candidacy that went to Lien.

Chen, the nominee of the DPP, himself won the election with a mere 39 percent of the vote on this island of 21.5 million people. Once the two opposition groups had stopped rancorously blaming each other for splitting the vote - their unity would have kept Chen out of power - it became natural to paper over past differences long enough for Lien and Soong to take the stage together.

This was not easy. Even now there are many in the PFP who resent the fact that the bigger vote-getter of the two, Soong, is to be only the vice-presidential running mate, and if elected hold the relatively powerless office. Still, observers have long speculated on a deal to give Soong the premiership as well. Some Lien supporters, on the other hand, see Soong as a traitor to the KMT - in which he rose to be secretary general - and deeply resent his perceived party-switching treachery rewarded when the KMT could field other rump candidates.

But adding 24 percent and 36 percent equaled power, and both parties muzzled their dissidents in order to bring about a Lien-Soong ticket. Since then it has been all downhill.

Long-term observers of Taiwanese politics are always surprised and intrigued by the degree to which the opposition camp - known colloquially as the "pan-blue alliance" after the color of the KMT emblem - believes its own propaganda. Partly, this is because of pan-blue domination of media and the media's long submissiveness in the years of the martial-law regime, under which most current senior journalists learned their trade. As a result, the pan-blues get favorable but often inaccurate media coverage, which they tend to believe.

Pan-blues bask in arithmetic, forget realities
The governing DPP in general receives very hostile coverage that, unfair as it is, keeps the party aware of the pitfalls, possible and actual, of its policies. As Taiwan's media applauded the brokering of the alliance and the joint presidential ticket, the pan-blues basked in their arithmetic and forgot about some of the harsher political realities.

For example, Lien Chan was the KMT candidate at a time when former president Lee Teng-hui was still leader of the party and in theory had put his imprimatur upon Lien's candidacy in March 2000 voting. Lien, after his election defeat, contrived to blame his failure on Lee and oust him in a leadership coup - considered an astonishing and successful piece of insolence so soon after his humiliating repudiation by voters. This maneuver also explains why the man who lost the last election can still lead the KMT into the next one.

Concerning Lien's 24 percent of the vote, perhaps as many as half the voters chose Lien because they believed Lee Teng-hui supported him. Now Lee has broken with his old party completely, and is telling his supporters to vote for Chen.

Now 36 percent plus 12 percent (removing the Lee loyalists from the original sum), when compared with Chen's 39 percent plus 12 percent Lee loyalists, does not look anything like the walkover that had been predicted last spring. In fact it looks like what it is, a neck-and-neck race.

At the time the alliance was formed last spring, the pan-blues also miscalculated badly as to what the election was going to be about. They thought they would win on the basis of the miserable performance of the economy. Taiwan has seen three lean years, and the pan-blues had sought to position themselves as the authors of Taiwan's prosperity from the 1970s to the end of the century. They believed that their theme - "only we can bring the good times back" - was a sure winner. What they did not allow for was the sophistication and knowledge of ordinary Taiwanese.

For the first two years of Chen's government, as the economy floundered and 2001 actually saw negative growth for the first time in three decades, the DPP was overwhelmed with criticism. But 2002 saw a return to growth, and growth in 2003 is expected to have been a respectable 5 percent. With export orders at record highs in the third and fourth quarters, the economy seems to have turned the corner.

Public links economic problems to US recession
Public opinion, however, has also changed, with a growing understanding that Taiwan's economic problems have had much to do with recession in the United States, especially in the information-technology (IT) sector after the dotcom bubble burst. Taiwanese also understand that the island's over-reliance on IT products and the US market was a creation of the previous KMT government in the 1990s.

The pan-blues also blundered in getting far too close to China. Smarting after the 2000 election loss, it might have seemed a smart strategy to persuade Beijing to ignore Chen, though given Chen's support for Taiwanese independence as a firebrand legislator in the early 1990s, he was hardly likely to be embraced. The strategy was simple: to freeze out Chen, showing he was not someone who could ever reach accommodation with China, and to deal with the pro-reunification pan-blues when Chen's failed policy resulted in his ejection from office by the voters.

The problem is that visits to China by KMT and PFP apparatchiks and legislators have been so frequent in the past three years that now voters are genuinely suspicious of their motives. Speculation is rife about striking a secret deal and "selling out Taiwan". The two allied naturally parties denied this, but the DPP's supporters managed to throw enough mud for some of it to stick, before the pan-blues realized quite how big an electoral liability their Beijing welcome might prove.

In addition to these basic pan-blue miscalculations about positioning and key issues, there appears to be an accelerating meltdown in pan-blue core ideology. The most spectacular instance of this was the parties' about-face from their traditional vigorous opposition to the highly controversial referendum law to actually forcing the legislation through parliament in November. The law allows Taiwan to hold referenda for the first time, and Chen is using a provision of the new law to ask voters whether they want China to redirect hundreds of missiles currently aimed at the island Beijing considers a renegade province.

But this is only the most extravagant example among a raft of issues that were once thought central to the pan-blue platform and now, as the campaign gathers steam, have been jettisoned. Adding to the pan-blues' woes, their substitute position on the referendum law seems to be no different from that of the rival governing DPP. As a result they have been derided, labeled ideological bankrupts who have long clung to vote-losing policies that they are now trying to replace by borrowing the DPP's more attractive agenda. "Imitation is the sincerest form of flattery," as one newspaper editorial mischievously pointed out.

First the pan-blues embraced constitutional change - something they had previously said was unnecessary - until the DPP seemed to be making headway with a design for an entirely new constitution. Then they tried to distance themselves from their pro-China reputation - and those "selling out Taiwan" rumors - by apparently abandoning their traditional staunch stand for reunification.

Flip-flop on reunification a stunner
Their flip-flop on reunification is still resounding. Initially the pan-blues had vigorously condemned Chen's remark in 2002 that Taiwan and China were two different countries, "one on each side" of the Taiwan Strait. They repeatedly demanded that Taiwan embrace the "one China" principle - slippery and dangerous to Taiwan as that concept might be, given Beijing's multiple definitions of terms.

In late December, however, the campaign manager for Lien Chan reported that the KMT presidential candidate now has decided that "one country on each side" of the Strait is an acceptable definition of reality and that Taiwan independence cannot be ruled out in the future.

This was partially denied by other party apparatchiks in different ways, and one newspaper counted no less than five definitions of Taiwan-China relations circulating in the pan-blue campaign. All of which appears like opportunism mixed with incompetence, compounded by a failure of imagination, according to local observers.

But it isn't just that the pan-blues that have been making blunders. They also have a number of weak points that are virtually indefensible and that the governing DPP assailed last month in attacks that are likely to draw blood.

A prime topic is the KMT's vast wealth and how it was acquired. Most people in Taiwan, even pan-blue supporters, believe that much of it was acquired less than honestly. After all, the Chiang Kai-shek family, which ruled Taiwan for nearly 40 years, were notorious kleptomaniacs, as more than one US president is on the record as saying. And the Chiang family ethics, or lack thereof, were emulated by their functionaries. The greed was compounded by a Leninist-style regime with no rule of law, and in which the government and ruling party were one and the same.

Given this history, it is no surprise that that the KMT - according to some Taiwanese estimates - is worth US$20 billion. The only surprise is that it has been allowed to hang on to its wealth - so far.

Criticism of KMT wealth resonates
The KMT retains its assets in part because the DPP simply lacks the strength in the legislature to force through necessary reform laws. It is tempting, however, to see the KMT's wealth as an issue the DPP deliberately neglected over the last three years in order to bring it up now as a campaign issue. The pitch to the voters amounts to accusing the KMT of theft of staggering sums and then asking whether the people really want to let these kleptocrats back into office. And it is resonating.

Further, allies Lien and Soong both have found themselves facing tough questions about their honesty. Soong was damaged in the last election by accusations that he stole some NT$240 billion (US$7.1 billion) from the KMT during his time as secretary general in the early 1990s, siphoning off the money into accounts in the names of his family members.

Despite overwhelming evidence to support the charge and inadequate explanations by Soong, prosecutors declined to pursue the matter in 2002, despite the KMT's lawyers' insistence that there was a case to answer. The investigation, however, was reopened last year, and it would not be surprising to see a flurry of activity as election day nears. The investigation is being held up partly because Soong's sister-in-law Chen Pi-yun - he claims she was acting as his financial adviser - refuses to return to Taiwan from Hawaii and face questioning by investigating prosecutors.

Lien, the PFP's presidential candidate, is also facing problems about alleged ill-gotten gains. In this case no one suggests that Lien personally has lined his own pockets - the question concerns his family's wealth. Questions have been raised, and a book recently published, about how Lien's father could come to Taiwan without a penny in 1949, and how he and his son spent their lives in public service - and yet Lien's family has amassed NT$20 billion of assets. The answer according to the new book is the illegal acquisition of farmland followed by the use of political access to get it rezoned into hugely more profitable commercial land - a common scam in Taiwan among the politically well-connected and one that the KMT used to repay the mafia-type gangs that arranged its vote-buying, according to critics.

Both the KMT and Lien dispute the accusations against his family. Lien says his worth is only NT$1.3 billion. The DPP's riposte is that this is forgetful accounting that neglects to mention the companies and trusts held in the name of other family members. The KMT has both sued the DPP for defamation and accused President Chen of financial shenanigans himself - and this has prompted a counter-suit from Chen's wife.

The problem for the pan-blues here is that everyone, except Soong's most ardent supporters, believes that at the very least he has not been candid about how the KMT's cash found its way into his family bank accounts. The fact that he didn't return the money when he quit the party in 1999 suggests that he wasn't managing a secret party fund, as he has claimed.

'Like it? Daddy will buy - or steal it - for you'
In Lien's case, the problem is that everybody believes him to be enormously wealthy. Even his friends candidly estimate his wealth to be about five to seven times the amount he has claimed (NT20 billion), estimates that have been published in an authorized biography. Lien's denials will not change many minds in Taiwan but will simply seem like the kind of evasion about ill-gotten gains that is so readily associated with the KMT. And he cannot admit to having enormous wealth without facing more questions about where it came from.

It is indicative of the way the campaign is going that the KMT launched a TV spot commenting on the first couple's wealth - Chen was one of Taiwan's most highly paid lawyers before taking up politics - and how they could not appreciate the tough financial plight of the ordinary Taiwanese. The theme: "Do you like it? Then daddy will buy it for you."

Then the DPP responded with its own, far more hard-hitting version aimed at Lien and Soong: "Do you like it? Then Daddy will steal it for you."

With little choice between the policies of the two sides, the issue of trust is one that can make a difference - and it appears to be one on which the pan-blues can only lose.

All of which is not to suggest that the DPP has the election in the bag. It cannot rely entirely on the pan-blues' blunders and the dubious honesty of their candidates. And Chen Shui-bian's use of the new referendum to call a vote on China's missile deployments - referendum as a vote of censure - could still blow up in his face.

But given that the pan-blues appeared to have a 20-percentage-point lead over the DPP last February and that the latest polls now show the pan-blues and President Chen level-pegging, the auguries for the alliance are not good.

(Copyright 2004 Asia Times Online Co, Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)
 
Jan 13, 2004



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