Taiwan president backs press freedom

Officials tried to stop a spy-fund story getting out

Taiwan's President Chen Shui-bian has pledged to uphold press freedom and review last week's raid on the offices of a magazine which reported the alleged existence of a slush fund for the use of espionage operations.

But in his first public comments on the incident, President Chen neither condemned nor vigorously defended the raid.

President Chen: Press freedom is crucial to democracy

The existence of the fund was reported by the China Times newspaper and news weekly Next. Next's offices were subsequently raided by government officials who accused it of revealing state secrets and jeopardising national security.

Opposition legislators in Taiwan have called for an investigation into the "illicit" $100m secret fund.

They want President Chen Shui-bian to reveal the details of the accounts and what the money was used for.

Review

President Chen, during a brief televised address on Monday, said he would "carefully review" how the raid on Next magazine was conducted.

National Security Bureau chief Tsai Chao-min has been called on to resign

"There are no conflicts between national security and freedom of the press," he said.

"The nation's survival hinges on national security. Press freedom is the foundation of democratic reforms. Neither one can be ignored."

Earlier in the day, local television showed him visiting the founder of the magazine, Yu Chi-chung, although there were no details of the talks.

Next magazine petitioned Taiwan's highest court on Monday, arguing that the government search was illegal and that the confiscated issues should be returned.

Meanwhile MPs of all parties have formed a "secretive accounts review committee" to investigate whether there was malpractice or corruption.

As the fund was reported to have been set up when long-term leader Lee Teng-hui was in office, lawmakers also want to know the exact role of the former president.

Mr Lee on Monday cancelled a trip to the US scheduled for May.

Two funds

Earlier this month, the Control Yuan government watchdog said the National Security Bureau had a secret fund from which an accountant embezzled $5.48m

Revelations of the confidential papers could make us international orphans, and might even cost some lives

National Security Bureau director Tsai Chao-min

But Next magazine and the China Times newspaper have now published documents revealing the existence of another fund allegedly set up by Mr Lee using accumulated budget surpluses.

The Next story showed how interest generated by the funds was used to subsidise Taiwan's espionage networks in mainland China and elsewhere.

The United Daily News said Mr Tsai told NSB officers that the stories about the fund were the bureau's "worst crisis".

"Revelations of the confidential papers could make us international orphans, and might even cost some lives," he was quoted as saying.

Some of Taiwan's intelligence partners have already warned that individuals could have been compromised and Taipei officials admit they have begun closing down spy networks in China, Hong Kong and Macau.