Premier without strings?

THE biggest challenge facing Mr Lien Chan, who was nominated yesterday as Taiwan's premier, is to prove he is not a puppet of President Mr Lee Teng-hui and that he is genuinely committed to reform. Mr Lien, currently Governor of Taiwan, must also act immediately to defuse tension across the Taiwan Strait in view of Beijing's suspicion that he is as committed to de facto independence as his mentor. It is a sign of political trouble for both Mr Lee and Mr Lien - as well as the Mainstream Faction of the Kuomintang (KMT) that they lead - that the announcement of his expected nomination failed to generate the excitement it should otherwise have. While most analysts think the Legislative Yuan will confirm Mr Lien as Taiwan's head of government on the 23rd of this month, the appointment could divide Taiwan politics as much as herald a new era for the prosperous island. Superficially at least, Mr Lien, 56, has impeccable credentials. A native of the city of Tainan, he represents the up-and-coming generation of native-Taiwanese politicians and businessmen who are taking over most of Taiwan's political and economic units. A former transport minister and vice-premier, Mr Lien is familiar with most aspects of administration. As foreign minister from 1988-90, the University of Chicago-trained technocrat could claim some credit for the relative success with which Taiwan has won new friends through ''dollar diplomacy''. That Mr Lee's nomination has enjoyed the tacit support of the opposition Democratic Progressive Party could also be a sign that in the future, party politics could proceed along less confrontational lines. Mr Lien's problem, however, is that instead of being a symbol of reform, he is perceived by many sectors as part of old-style politics. One reason why the KMT suffered its worst election defeat in the December 1992 legislative polls is its association with nepotism and ''money politics''. Earlier this week, Mr Lien's wife, Ms Fang Yu, a businesswoman and former beauty queen, became embroiled in an alleged tax evasion scandal. Mr Lien is one of the so-called ''four princelings'' of Taiwan politics. The scion of a powerful Taiwan clan - his father was a presidential adviser - Mr Lien is generally regarded as a billionaire. ''Lien Chan, like fellow princelings such as [former KMT secretary-general] James Soong, is seen to have risen to the top through their pedigree and connections as much as their ability,'' said a Taiwan newspaper editor. It does not help the Mainstream Faction much when President Mr Lee indicated he might nominate Mr Soong - who was blamed for the KMT's poor showings last December - to succeed Mr Lien as Taiwan Governor. THE first item on Mr Lien's agenda will be to mollify the Non-Mainstream faction, which is led by the out-going premier Mr Hau Pei-tsun. The Non-Mainstream faction, which represents interests of mainlanders and the military, controls close to 40 of the legislature's 160 seats. Mr Hau's supporters have contended that, in cahoots with the DPP, the Mainstream faction is leading the island down the road of separatism. It is expected that Mr Lien will try to woo non-Mainstream politicians with more than a token number of cabinet seats. However, to ensure peace and healthy co-operation between the two factions, Mr Lien will have to work out long-term ways to ensure equality of opportunity for mainlanders and natives. Equally important, Mr Lien has to address the knotty issue of constitutional and political reform, including his own relationship with the president. It has been pointed out that the Taiwan Constitution is ambiguous about whether the administration should be presidential, as in France and the United States, or cabinet-style, as in Britain. In the wake of a series of strongmen including the two president Chiangs, however, the Taiwan system has gravitated towards the presidential. But many liberal scholars and DPP politicians are arguing that with the maturing of party politics, Taipei should switch to the British way. However, they fear that since Mr Lien owes his position to Mr Lee, the institution of the ''autocratic president'' may persevere. Other political reform issues Mr Lien has to tackle include the weaning of politics from money and the separation of party and business, including the privatisation of party and government assets and enterprises. Mr Lien could, however, find that his problems with the mainland could prove even more daunting. In anticipation of his elevation, official and semi-official propaganda units in China and Hongkong have made much about his connections to the pro-independence movement. For example, it was alleged that while being a student of Dr Pang Ming-min at National Taiwan University, Mr Lien helped the ''godfather of independence'' draft or translate many of the early papers on separatism. In an interview with the Taiwan press on Tuesday, Mr Lien categorically denied that he would enact pro-independence policies. The premier-to-be also towed Mr Lee's line that he would not invite DPP members into his cabinet. However, it is not expected that Mr Lien will in the near future do the one thing that would instantly put him in Beijing's good books - allow direct air and other communication links across the Strait.