Taiwan president cedes some powers to premier

TAIPEI, June 1 (Reuters) Taiwan President Chen Shui-bian has ceded some powers to the premier in an attempt to deflect growing pressure from supporters and opponents alike to resign but media said today it was not enough.

Chen, whose approval rating has sunk to new lows after an insider trading scandal implicated his son-in-law, said late on Wednesday that Premier Su Tseng-chang would be wholly responsible for appointing cabinet ministers and setting government policy.

But Chen also said he would retain powers vested in him by the constitution. What that meant was not immediately clear as the constitution does not spell out those powers.

The Chinese-language United Daily News interpreted it to mean Chen would hold on to the diplomatic and military portfolios and overseeing ties with China, which claims sovereignty over self-ruled Taiwan.

''Chen Shui-bian should voluntarily quit the party to give the Democratic Progressive Party a new lease on life,'' the daily said in an editorial.

A China Times commentary said: ''Becoming a mere figurehead cannot quell the people's anger.

''The people had hoped that Chen would express regret, but he did not. The people had hoped that he would explain clearly what happened in those wrongdoings, but he did not,'' it said.

Taiwan's constitution does not spell out clearly whether the island has a presidential or parliamentary system of government.

In the past, some premiers have acted as the president's chief of staff and served only to carry out his wishes. Others have taken on greater powers.

''The president said he is ceding powers that he is not supposed to have in the first place according to the constitution. So does this mean that he has been going against the constitution and abusing his power?'' opposition leader Ma Ying-jeou asked.

''We ask him to be honest with the public and clarify exactly what the first family has done,'' Ma told reporters.

Taiwan media said Chen's announcement may mean Premier Su could be 100 percent his own man, leaving Chen as a lame duck with two years to go before his second four-year term ends in 2008. The constitution bars Chen from running for a third term.

Shen Fu-hsiung, a former legislator, speculated that Su was the front-runner to become the party's standard bearer in the 2008 presidential elections.

An opposition plan to oust Chen in a parliamentary vote lacks the two-thirds majority needed to sack the president.

Chen's political woes worsened last Thursday when son-in-law Chao Chien-ming was detained on suspicion of insider trading -- the first time a member of Taiwan's first family has been held on suspicion of breaking the law.

Chen has pledged to restrict his family members to charity work in the future and not to take part in DPP functions.

REUTERS AD PM1112