Bloomberg.com: Japan

Bloomberg.com: Japan: "Taiwan Premier Su Quits on Presidential Primary Loss (Update5) " By George Hsu May 12 (Bloomberg) -- Taiwan Premier Su Tseng-Chang resigned less than a week after he failed to win his party's nomination for the 2008 presidential race. ``The primary election wasn't perfect, but I have offered my support to the ruling party candidate,'' Su said in a televised press conference. ``Given this is President Chen's last year in office, he will need to make personnel changes.'' Su's replacement will be named ``at the earlier possible time,'' President Chen Shui-bian said at a separate press conference. Chen will likely pick his next premier based on whoever has the best chance of helping Frank Hsieh, the ruling party's candidate, win next year's presidential election, according to analyst Andrew Yang. Su and Chen had a tense relationship, as Su took a more conciliatory line toward China than the President, Yang added. ``The priority for Chen and his party is to win in 2008,'' said Yang, secretary-general of Taiwan's Council for Advanced Policy Studies. ``Su is making room for Chen to pick the person he trusts the most.'' Hsieh is currently trailing the opposition candidate Ma Ying-jeou in opinion polls. Both men are seen as favoring better ties with China, which considers Taiwan part of its territory. Possible Successors Su's successor may be Chang Chun-hsiung or Yu Shyi-kun, who have both been premiers under Chen, according to local TV reports. Chang, the campaign manager for Chen's two election victories, may help boost the ruling Democratic Progressive Party, or DPP's, chances next year as well, Yang said. Su has eased restrictions on mainland investments and allowed more cross-straits flights, since being named as President Chen's fifth premier in January 2006. He also said Taiwan would take part in the torch relay for the 2008 Beijing Olympics provided the flame entered and left the island via other countries to highlight the international nature of the route. Chen had initially rejected the invitation. ``Su and Chen are not on good terms because Chen has found Su to be hard to control,'' Yang said. China has refused to talk directly with Chen's government because of his assertion that Taiwan is a sovereign nation. China and Taiwan have had separate governments since 1949. ``Premier Su has had some accomplishments in office,'' Chen said. ``I respect his decision to help build harmony within the party.'' Chang, Yu Chang, currently chairman of the Straits Exchange Foundation, which handles relations with the mainland, is likely to be named as the new premier, according to ETTV. He resigned as Chen's second premier in 2002 after opposition lawmakers forced him to cancel plans to scrap construction of a nuclear power plant. Yu, the ruling party's chairman, may also become premier, according to SET TV. He was Chen's third premier, holding office between February 2002 and January 2005. Chen is due to step down in May 2008 after serving two terms in office, the maximum allowed by Taiwan's constitution. He assumed office in 2000, ending the Kuomintang, or KMT's, five- decade-long reign. ``I don't understand why the ruling party has to have six premiers in seven years,'' Ma, the KMT's presidential candidate, said in an interview with ETTV. ``The new premier will have to start from scratch again, making it difficult to accomplish anything.'' The members of Su's cabinet will also offer to resign alongside his departure, as is customary in Taiwan, cabinet spokeswoman Chen Mei-ling said in a phone interview. Su endorsed Hsieh as the DPP's presidential candidate after Hsieh won 44.9 percent of the votes in the first round of the primary elections on May 6. The second round was canceled after Hsieh's three challengers all withdrew from the race. To contact the reporter for this story: George Hsu in Taipei at