Hou：Negotiation Only Possible with Bargaining Chips
United Daily News, September 20, 2023
Kuomintang (KMT) presidential candidate Hou Yu-ih made his debut visit to the United States on September 19 and delivered a speech in a seminar at the Brookings Institution. In the seminar, the attending scholars' questions focused on Taiwan's defense budget, trade in services and trade in goods with mainland China. Hou answered all those questions on the spot. In response to the question on the 1992 Consensus, Hou reiterated his opposition to the “One Country, Two Systems” formula and de jure Taiwan independence. According to Hou, his 1992 Consensus is based on the Republic of China (ROC) Constitution and the Act Governing Cross-Strait Relations; it is not “One Country, Two Systems.”
In response to questions on the cross-strait agreements on trade in services and trade in goods, Hou directly accused the ruling Democratic Progressive Party (DPP) of rigging the procedure so that the agreements were blocked. Hou also took the DPP task for its distortion of the real meaning of the 1992 Consensus and promised that after he takes office, he will make sure that the Legislative Oversight of Cross-Strait Agreements bill be passed as soon as possible.
In the seminar, Hou presented once again his "theory of attack," saying that his experience as a police chief taught him the importance of using both offense and defense when dealing with rivals—and the essential role of negotiations. So, when asked about how he will negotiate with Beijing, he used the attack theory to explain, emphasizing that Taiwan should first strengthen its capabilities in various fields.
In his Foreign Affairs article, Hou also advocates setting up a cabinet-level All-Out Defense Mobilization Council. According to an informed source, the United States thinks very highly of this idea, as this is what the Taiwanese people need most now. Hou's proposal to strengthen the Taiwanese people's sense of crisis especially caught the attention of the United States. In areas where the ruling DPP failed, Hou is determined to strengthen and elevate.
On Taiwan’s defense budget, according to informed sources, Hou indicated that the arms purchase is not all about the percentage of the defense budget, the important point is to maintain peace and stability in the Taiwan Strait. With a secure Taiwan Strait will come foreign investment. As a result, the economy grows and tax revenue increases. With economic growth, arms purchase also grows in tandem.
In an interview after the seminar, Richard Bush, former chairman of the American Institute in Taiwan (AIT), indicated that the discussion was very detailed and substantive. The exchanges between Hou and the attending scholars were “very direct." "In the meeting, everyone became very clear on Hou's thoughts on the cross-strait relations and U.S.-Taiwan relations." Bush further said that Hou understands clearly the common interests, the concerns and the focus points between Taiwan and the United States; as to the details, "this is a closed-door meeting, what is said in the room, stays in the room."