Taiwan president struggles to shake off scandal

TAIPEI, May 28 (Reuters) Taiwan President Chen Shui-bian is struggling to weather a political crisis amid attacks from the opposition and even factions of his party own after his son-in-law was detained on suspicion of insider trading.

Chao Chien-ming, a doctor married to Chen's daughter, was detained on Thursday after marathon questioning on suspicion of insider trading in a scandal that has sparked opposition calls for the embattled leader's resignation.

It was the first time a member of Taiwan's first family has been held on suspicion of breaking the law.

An opposition deputy has accused Chao of using dummy accounts to buy shares of Taiwan Development Corp. from the partly state-owned Chang Hwa Bank at relatively low prices in a private placement last year.

Opposition deputies have called for Chen's ouster, but Ma Ying-jeou, chairman of the main opposition Nationalist Party who plans to run for president in 2008, was against it arguing that it would divert attention from the scandal.

In a twist, Chen came under fire from some deputies of his Democratic Progressive Party (DPP) who urged him to start sharing power by consulting other party leaders on major government decisions.

''We're facing internal and external troubles,'' DPP spokesman Tsai Huang-lang said on a television talk show.

Others called for presidential primaries ahead of schedule, hoping that choosing a new leader would repair the DPP's tarnished image.

The move could turn Chen into a lame duck with two years to go before his second and final four-year term ends.

But party leaders rallied behind Chen. DPP chairman Yu Shyi-kun called for unity and likened the ruling party to a farmer who must stand up and rebuild his home after a typhoon.

''Now is the time to share responsibility, not to share power,'' Yu said. ''The party will not be easily knocked down.'' Premier Su Tseng-chang warned that no-holds-barred fighting between the ruling and opposition parties would bring ''turmoil''.

In a contentious move, the president nominated a new top prosecutor, an indication he was not about to give up without a fight. The nomination needs the blessing of parliament.

''Things could get worse,'' Lo Chih-cheng, a political scientist with the private Soochow University, said, referring to accusations by opposition politicians that First Lady Wu Shu-chen accepted millions of Taiwan dollars worth of department store vouchers from a friend.

She has denied the allegation.

''The party is in the most difficult situation but there is practically nothing it can do,'' Lo said.

REUTERS SHB RK1153