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1998 , 1999 , Jan - Jun 2000 , Jul - Dec 2000

2001

Chen Inaugurates Taiwan Thinktank
(Taiwan News, Dec. 31, 2001) Top leaders in the political, business, and academic circles gathered for a "tea party" to officially launch the Taiwan Thinktank, serving as a high-level advisory body and a forum to promote reform and formulate public policy for the government.

China Slams Report on Weapons Sales to Taliban
(Xinhua News, Dec. 25, 2001) The Washington Times report about China providing weapons to al-Qaida after the September 11 terror attacks is "groundless", Chinese Foreign Ministry spokeswoman Zhang Qiyue said in Beijing on Monday. The report is groundless and with ulterior motives, Zhang said, and the Chinese side has made serious representations to the US side on the matter.

Chinese Media Raise Alarm on Japan's Weak Yen
(Reuters, Dec. 24, 2001) Japan's weak yen could set off a round of Asian currency devaluations not seen since the regional economic crisis of 1997, the official People's Daily said in a commentary on Monday. Calling the Japanese government "irresponsible", state media urged it to arrest the slide, but Chinese officials have been more muted.

Taiwan to Probe Rise of CCP in Factories
(South China Morning Post, Dec. 20, 2001) The Taiwan Government would examine potential security threats posed by the formation of Chinese Communist Party units in Taiwan-owned factories on the mainland. The event was seen as significant because President Jiang Zemin recently invited capitalists to join the CCP and also because Foxconn is among the largest Taiwan-owned mainland factories.

China Warns Israel over Radar Deal
(CNN.com, Dec. 19, 2001) China has urged Israel to come up with a "satisfactory solution" after it bowed to U.S. pressure and canceled the sale of an advanced airborne radar system. The two countries held their first round of talks this week in a bid to resolve the dispute, but made little headway.

Taipei to Add 'Taiwan' to Passport Cover Next Year
(AFP, Dec. 16, 2001, 2001) Taiwan's Foreign Ministry has decided to add the word 'Taiwan' on the cover of the island's passport next year in a move cautiously aimed at distinguishing itself from the Chinese mainland. The passport, which currently refers in English to the island as 'the Republic of China', would have the word 'Taiwan' added to the front to avoid the island being mistaken for China.

KMT, PFP Rule Out Chen Alliance
(Taiwan News, Dec. 7, 2001) Less than a week after a historic election shook up Taiwan's Legislature, the island's two largest opposition parties, the Kuomintang and the People First Party ruled out accepting the president's invitation to join the island's first coalition government. Chairman Soong says both parties will play classic role of opposition.

Lee Says 'R.O.C.' Title No Longer Exists
(Taiwan News, Nov. 30, 2001) Former President Lee Teng-hui put in a last-minute effort to stump for the Taiwan Solidarity Union, saying that safeguarding Taiwan's sovereignty is the nation's utmost responsibility and that the name of the "Republic of China" does not exist any longer.

Beijing's Free Trade Area Proposal Gets Cool Response
(Taiwan Economic News, Nov. 29, 2001) Government officials express reservations about a possible plan of establishing a free trade area (FTA) by combining the four regions of Taiwan, mainland China, Hong Kong and Macau.

US Carrier's Port Call Signals China's Support for Terrorist War
(AFP, Nov. 24, 2001) Beijing has given approval for a US aircraft carrier to make a port call in Hong Kong on its way to the Arabian Sea, in what analysts say is the clearest sign yet of China's support for the US-led war on terrorism.

China Plans Moon Landing
(CNN.com, Nov. 23, 2001) China is planning to send a man to the moon as part of its developing space program. China has yet to send a manned craft into space but plans to do so by 2005. China first launched a satellite in 1970. In 1999 and January 2001 it successfully launched the "Shenzou" unmanned spacecraft.

Taiwan Hits Recession with GDP Drop
(CNN.com, Nov. 17, 2001) Taiwan's gross domestic product shrank 4.2 percent in the third quarter to September, the government reported. That worsens the 2.35 percent decline for the second quarter. It is the steepest dropoff in 26 years for Taiwan, which was already suffering badly from the United States slowdown before September 11.

Chen Dreams of Reconciliation
(CNN.com, Nov. 16, 2001) Taiwan's President Chen Shui-bian has tried to defuse cross-Straits tension by offering to go to Fujian province to "seek his roots." It is unlikely, however, that Beijing will modify its policy of avoiding direct contact with Chen or members of his Democratic Progressive Party (DPP) administration.

Taiwan President Barred from Europe
(BBC, Nov. 15, 2001) European governments have blocked Taiwan's President Chen Shui-bian from collecting an international prize for freedom and democracy in France. Responding to pressure from the Chinese Government, they refused to grant a visa to allow President Chen to attend the ceremony.

Taiwanese Fear Nation's Status Is Declining: Poll
(Taipei Times, Nov. 14, 2001) Despite euphoria over Taiwan's accession to the WTO, 46.4 percent of respondents to the Ministry of Foreign Affairs' latest survey said they believe Taiwan's international status is declining, up 5.2 percentage points from five months ago.

Complaints That Chinese Companies Supply Rogue Nations
(WP, Nov. 12, 201) China's high technology industry finds itself treading on geopolitical fault lines these days, as Chinese companies have become suppliers of advanced communications equipment to nations that Western companies avoid, or are barred from doing business with.

Japan, China, South Korea Agree to Ministerial Meetings
(Japan Times, Nov. 7, 2001) Japan, China and South Korea agreed to launch separate regular meetings of their economic, foreign and finance ministers to foster closer cooperation. The three also agreed to work together in combating terrorism and on issues that affect the region, such as piracy and the environment.

US Says Arms Sales to Taiwan Won't Change Relations
(Taipei Times, Nov. 3, 2001) Announcements of weapons sales to Taiwan had no particular political importance to the US position on cross-strait relations. "The sales represent the way the long, convoluted process of US overseas arms sales go through the US bureaucratic process rather than the timing of the latest announcements," said James Kelly.

China Again Censoring Web
(WP, Oct. 23, 2001) Hours after the conclusion of a high-profile meeting of Pacific Rim leaders in Shanghai, China's rulers resumed blocking access to the Web sites of foreign news organizations, including CNN, the BBC, Reuters and The Washington Post.

It's Time to Look Again at Attack Precautions By Yuan I
(Taipei Times, Oct. 17, 2001) In the light of the Sept. 11 terrorist incidents, international cooperation against terrorist activities will necessarily increase. Taiwan must revise its strategy of taking economic security as the primary consideration. The government should re-evaluate threats to national security on the basis of the attacks.

China and Taiwan Feud over Envoy for Shanghai Summit
(Reuters, Oct. 15, 2001) China said Taiwan should submit an acceptable name to attend a weekend summit of Asia-Pacific leaders in Shanghai, but the island stood by its decision to send former vice president Li Yuan-zu. But Taiwan stood by its decision to send Li to the October 20-21 Asia-Pacific Economic Cooperation summit in Shanghai.

KMT Accuses Lee Teng-hui of Betrayal
(Straits Times, Oct. 9, 2001) In a strongly worded open letter to its members, the Kuomintang (KMT) explained why it had expelled Mr Lee - the party's chairman for 12 years until it lost the presidential election last year.

Taiwan Backs US Strikes
(Taiwan Headlines, Oct. 8, 2001 President Chen Shui-bian, on behalf of the people of the Republic of China, denounced terrorism and expressed the nation's full support of the U.S. strikes against targets in Afghanistan.

Powell Pledges Continued Arms Aid to Taipei
(AFP, Oct. 5, 2001) Secretary of State Colin Powell said that Chinese assistance in a US-led anti-terrorism coalition would in no way affect US policy towards Taiwan, including arms sales to the island. Mr Powell told a small group of reporters at the State Department that Taiwan had nothing to fear from closer US-Chinese cooperation on the anti-terrorism front.

'Self-Defence First' for US
(BBC, Oct. 2, 2001) The United States plans to shift its priority to defending itself according to a strategic review document. The Quadrennial Defence Review also recommends that the requirement that US forces be capable of simultaneously fighting two regional wars be amended. Instead, it suggests that they be able to win one conflict decisively while holding their positions in another.

New Blueprint for Military Shifts Priority to U.S. Soil, Revising 2-War Strategy
(NYT, Oct. 2, 2001) The Defense Department sent Congress a sweeping review of strategy that was strikingly prescient in warning of new terrorist threats on American soil, even as many of its specific findings have been overtaken by the Sept. 11 attacks.

 Taiwan's KMT Expels Former President
(BBC, Sep. 22, 2001) Former Taiwan President Lee Teng-hui has been expelled by the Kuomintang (KMT) Party which he led for more than 12 years. The party's disciplinary committee said Mr Lee had maliciously harmed the party by campaigning for a rival political grouping.

KMT Breaks It Off with Lee Teng-hui
(Taipei Times, Sep. 22, 2001) After months of hemming and hawing, the KMT officially called it quits with its estranged former chairman, Lee Teng-hui. The party revoked Lee's membership, saying he violated party rules. KMT members have been upset with Lee's carousing with the Taiwan Solidarity Union, a rival political group. They're also infuriated with his criticism of the party.

China Also Wants U.S. Help Against 'Separatists'
(WP, Sep. 19, 2001) China sought to link its backing for a U.S.-led anti-terrorism campaign to a demand that the United States support China's own fight against separatists in Taiwan, Tibet and Xinjiang province. Foreign Ministry spokesman Zhu Bangzao said China is willing to discuss proposals to combat terrorism around the world, but in the context of the U.N. Security Council.

Taiwan Stands with US Against Terrorism: FM
(CNA, Sep. 14, 2001) Foreign Minister Tien Hung-mao said that the Republic of China will stand firmly with the United States in fighting terrorism. Tien said the United States has come to the aid of Taiwan in times of emergency in the past, and now is the time for Taiwan to show its support for the United States.

KMT Plan to Open China Office
(Reuters, Sep. 11, 2001) Taiwan's biggest opposition group, the KMT Party, said it planned to open an office in China for the first time in more than 50 years, but played down its political significance. "We want to open a service centre for Taiwan businessmen there, but not for general party affairs."

Firms Risk China's Wrath Over Taiwan Deals
(WP, Sept. 5, 2001) Beijing has issued a veiled warning that foreign firms risk losing out on business opportunities in China if they interact directly with government officials from Taiwan. Zhu Bangzhao, spokesman for China's Foreign Ministry, said Beijing is opposed to "any official exchanges or contacts" with representatives of the Taiwanese government.

Beijing Out to Destroy Us, Says Chen
(South China Morning Post, Sep. 4, 2001) Taiwan President Chen Shui-bian and the island's top military commander yesterday issued separate warnings on Beijing's continued military threat just days after the President gave his ringing endorsement to expanding cross-strait trade and investment.

Banks Shun Roadshow to Avoid Upsetting China
(Financial Times, Sep. 1, 2001) Global investment banks including Goldman Sachs and Merrill Lynch backed away from helping Taiwan hold an investment promotional tour in the US for fear of upsetting Beijing. China was believed to be punishing Credit Suisse First Boston for playing a major role in a Taiwan government-backed investment promotional tour to Europe and a conference in Hong Kong.

Army Shifting Equipment to Asia
(AP, Aug. 31, 2001) The Army intends to move some of its weapons and other war-fighting equipment from Europe to Asia, reflecting a shift in strategic focus by the Bush administration. No troops are moving yet, but Army Secretary Thomas White left open the possibility the service might expand or reconfigure its presence in the Asia-Pacific region while maintaining its basic commitments in Europe.

Cross-Strait Relations Begin New Era: Chen
(China Post, Aug. 30, 2001) President Chen Shui-bian said that Taiwan's commercial relations with mainland China entered a new era when the Economic Development Advisory Conference (EDAC) decided to scrap the "no haste, be patient" policy. "I believe that the best way to normalize the cross-strait ties is to first try normalizing the two sides' trading and commercial relations."

Taiwan to Turn 'Aggressive' on China Trade
(AP, Aug. 26, 2001) A group of influential advisers has urged Taiwan's president to relax limits on commercial ties with mainland China, a historic move business leaders say would boost Taiwan's economy and create a powerful trading zone. For years, Taiwanese have been arguing about expanding trade relations with China.

Hyde Urges Strong Support for Taiwan
(WP, Aug. 24, 2001) Rep. Henry J. Hyde, chairman of the House International Relations Committee, plans to call today for the United States to embrace Taiwan as a means of countering Chinese policies aimed at "undermining U.S. interests around the world."

U.S. Navy Plays in China's Backyard
(AP, Aug. 18, 2001) The U.S. Navy has held an unusually large exercise in the South China Sea. The USS Constellation and the USS Carl Vinson conducted the one-day training exercise. 14 vessels, at least 130 naval aircraft, more than 20 U.S. Air Force aircraft, and more than 15,000 personnel joined forces in the exercise.

Taiwan's Economy Goes Into Recession
(Taipei Times, Aug. 18, 2001) It's official. The nation's economy has now met the textbook definition of a recession: little or no growth for two or more consecutive quarters. The government's official number-cruncher reported yesterday that the economy shrank by 2.35 percent in the second quarter. The poor performance follows sluggish GDP growth of just 1.1 percent in the first quarter.

US Slowdown Buffets Taiwan
(Financial Times, Aug. 17, 2001) The damaging effects of the US downturn on the global economy were starkly illustrated on Friday when Taiwan, a bellwether of Asian exporting countries, reported its worst fall in gross domestic product in 25 years.

Taiwan's Chen Shui-bian Says He's Entitled To Go To APEC
(Reuters, Aug. 10, 2001) Taiwan President Chen Shui-bian said on Friday he was entitled to attend the Asia-Pacific Economic Cooperation (APEC) summit in Shanghai in October and would like to do so in his official capacity. Chen has repeatedly said he hopes to attend the APEC summit in October and hold talks with Chinese President Jiang Zemin.

NSC Says Beijing May Yet Talk to DPP
(Taipei Times, Aug. 6, 2001) The National Security Council (NSC) recently predicted that China will seriously consider reopening dialogue with Taiwan if the ruling DPP can successfully create a majority alliance in the Legislative Yuan after the year-end legislative elections .

China Marks Army Day with Threat Against Taiwan
(Reuters, Aug. 1, 2001) Minister of Defense Chi Haotian marked the 74th anniversary of the People's Liberation Army (PLA) by repeating China's threat to use force against Taiwan if it sought independence. The military sought a peaceful solution but would not renounce the use of force, he told a reception late on Monday for the founding of the PLA.

China Feud Has New Risks for Taiwan
(New York Times, July 28, 2001) In a sign that Taiwan's political standoff with China is starting to alienate its corporate customers, Dell Computer has criticized the reluctance of the authorities on Taiwan to establish direct trade and transportation ties with the Chinese mainland.

Pro-Lee Party Reveals Name, Logo
(Taipei Times, July 25, 2001) Politicians with close ties to former President Lee Teng-hui Tuesday formally announced the formation of a new political party that hopes to win as many as 40 seats in the year-end legislative elections. Former Minister of the Interior Huang Chu-wen unveiled the party's name, the Taiwan Solidarity Union.

2008 Olympic in Beijing: Mixed Response from Taiwan
(CNN.com, July 14, 2001) In a mixed mood reflecting both expectation and fear, Taiwan on Friday offered a guarded welcome to Beijing winning the right to host the 2008 Olympics. Expectation in a sense that there could be peace between the two in the lead up to the Games, and fear that the Chinese victory might deepen the already growing nationalism on the mainland, thus fueling their determination to take Taiwan back to its fold.

DPP Members Banned from Private Links with Mainland
(South China Morning Post, July 13, 2001) Taiwan's ruling Democratic Progressive Party (DPP) has prohibited its members from engaging in any dialogue with mainland officials in a private capacity. Yan Jiann-fa, director of the party's Chinese Affairs Department, said the party leadership reached a consensus on the issue about two weeks ago.

Jiang Places Himself Next to Mao, Deng, Vows to Strengthen Party
(AFP, July 1, 2001) Chinese President Jiang Zemin put his leadership on par with the late Mao Zedong and Deng Xiaoping by vowing to build a strong and modern Communist Party (CCP) capable of leading China well into the next century. The president and party boss further reiterated Beijing's refusal to renounce the use of force in reunifying the province of Taiwan and in an implicit jab at the United States, vowed to fight "global hegemonism and power politics."

China Embraces Capitalism at 80th Bash
(CNN.com, July 1, 2001) President Jiang Zemin has thrown open the doors of the Chinese Communist Party to the "new classes" of private entrepreneurs and professionals. In an address marking the 80th birthday of the CCP, Jiang also pointed out the major goal of the party was to raise economic productivity and boost the population's standard of living.

Lee Ends US Visit with Beijing Jab
(Reuters, June 29, 2001) Former Taiwanese President Lee Teng-hui ended a visit to Cornell University as he began it: with criticism of Beijing that is sure to raise the hackles of mainland officials. On the final day of the three-day visit to his alma mater, Mr Lee said Taipei and Beijing must make efforts to improve ties, but China also had to improve its record on human rights and democracy.

Lee Teng-hui to Visit Cornell University
(AFP, June 24, 2001) Former Taiwanese president Lee Teng-hui left for the United States late Sunday on a visit. Lee and his wife were due to make a stopover in Los Angeles before flying to New York for the inauguration of a science research center in Lee's honor at his alma mater, Cornell University. Lee will also take advantage of the trip to visit his granddaughter, a sophomore at the university

U.S. Official Supports Cross-Strait Dialogue with No Preconditions
(CNA, June 22, 2001) Echoing the position taken by the Republic of China government, a senior U.S. official said Thursday that Taiwan and mainland China should resume dialogue without preconditions. Torkel Patterson, senior director of Asian affairs at the National Security Council, said "I don't think there needs to be any preconditions for dialogue between the two sides."

Tycoon Slams Gov't for Upholding 'Go Slow' Policy
(China Post, June 20, 2001) Formosa Plastics tycoon Wang Yung-ching yesterday renewed his attack on the "go slow" mainland policy, saying Taiwan must accept the "one China" principle, and completely lift the cross-strait investment ban. The government dismissed Wang's criticisms, but the opposition parties gave Wang a thumbs-up.

Lee, Chen Appearances Hint at Political Alliance
(China Post, June 17, 2001) Former president Lee Teng-hui appeared at the inauguration of a pro-independence academic group close to Lee's successor Chen Shui-bian, calling for the formation of a "new Taiwan." Lee is believed to favor Chen, for his 50-year-old successor has inherited his approach to cross-strait relations and shares with him the passion for Taiwanese nationalism.

Most Taiwan People Unconcerned about Beijing's Military Exercises: Poll
(CNA, June 10, 2001) Most people in Taiwan do not believe that Beijing will invade Taiwan in the next one or two years despite the frequent military exercises by mainland China. The poll found that people asked about China's military exercises on the southeastern coast of the mainland mostly felt that there was nothing to worry about. Sixty-five percent said the war games would not impact the future of Taiwan.

No Backing for Chen to Attend APEC: US
(CNA, June 8, 2001) The United States favors the existing arrangement whereby Taiwan is represented only by economic leaders at Asia-Pacific Economic Cooperation (APEC) forum meetings, the U.S. State Department. The statement indicates no change in the U.S. stance on Taiwan's representation at the 21-nation forum. "The issue of Taiwan's representation has been worked out successfully for past ministerial and summit meetings," State Department spokesman Richard Boucher said.

U.S. Carrier Moves Dismissed as 'No News'
(CNA, June 3, 2001) Seasoned defense officials dismissed as "no news" reports that the U.S. aircraft carrier Carl Vinson is sailing toward the Taiwan Strait in the light of the mainland's upcoming war games against Taiwan. The officials said the fleet was only carrying out a routine patrol mission. Tthe media speculated that the vessel's voyage "toward the Taiwan Strait" might be related to mainland China's current massive exercises on its offshore Dongshan Island near Taiwan.

US Aircraft Carrier Group Steams Toward Taiwan
(Taipei Times, June 3, 2001) A US aircraft carrier battle group is now approaching Taiwan, having moved into seas around 350 nautical miles off Taiwan's eastern coast by Friday night. The approach of the Carl Vinson aircraft carrier battle group is related to a large-scale military exercise currently being conducted by China on Dongshan island off Fujian Province across the Taiwan Strait.

Taiwan to Beef Up Security Cooperation with US, Japan: Official
(CNA, May 27, 2001) Taiwan will seek to strengthen security cooperation with the United States and Japan while endeavoring to defuse tension with mainland China through confidence-building measures, a senior official said. Vice Minister of National Defense Chen Pi-chao made the remarks at a seminar on the U.S. review of its national defense strategy and future security in the Taiwan Strait.

Lu says Taiwan Should be More Like `Hello Kitty'
(Taipei Times, May 24, 2001) In the face of constant threats from China, Taiwan must behave like "Hello Kitty," becoming a cuddly country adored by the international community and dealing with threats of violence with "soft means," Vice President Annette Lu told military officials. "Taiwan's soft powers lie in its respect for human rights, democracy, love for peace, love for mankind and its high-tech industry," the vice president said. "People in China do not have any of these powers yet. This is their weakness, but for us it is where we are strong."

Taiwan's Chen Eyes Power-Sharing Deal
(CNN.com, May 18, 2001) Taiwan's President Chen Shui-bian has proposed to end political feuding in Taiwan by forming its first coalition government after legislative elections in December. A gridlock between the opposition Nationalist Party and Chen's minority ruling party has stalled policy reforms and the economy since he assumed office last May. "Regardless of the election results, we will form a coalition government and a majority alliance of lawmakers to restructure the legislature and stabilize politics," Chen said in a televised address

China Charges American With Spying for Taiwan
(WP, May 18, 2001) Chinese authorities have formally arrested a Chinese American business professor held since Feb. 25 and charged him with spying for Taiwan, making him one of the few U.S. citizens ever to face espionage charges here. A Chinese Foreign Ministry spokesman declined to discuss the case against the detained man, Li Shaomin, 44, a marketing professor at the City University of Hong Kong and the son of a prominent Chinese dissident. The formal espionage charge against an American, the first in six years, follows a crackdown on overseas Chinese visitors with ties to the United States.

China: The Best Value for Money?
(CNN.com, May 8, 2001) In his 30-minute speech, Jiang made no mention of the recent difficulties in diplomatic and military ties with the U.S. The speech dwelt on the importance of peace as a prerequisite for development. Jiang said despite overall peaceful conditions worldwide, "conflicts and even local wars … have kept cropping up." Moreover, he bent over backwards to show U.S. and Western businessmen in the audience that Beijing could separate economics from politics.

Taiwan Ex-PM to Sell Common Market Idea to China
(Reuters, May 8, 2001) Former Taiwan premier Vincent Siew flew to China on Tuesday to try to win Chinese leaders over to his idea of establishing a regional common market as part of reconciliation efforts. "I feel we need to let economic and trade ties between the two sides build a long-term, stable mechanism. This mechanism is a common market." "There still exists too many unnecessary risks and uncertainties." said Siew.

Former President's Visa Caught in Political Wrangling
(Taipei Times, Apr. 12, 2001) Whether former President Lee Teng-hui will be granted a visa to visit Japan was still unclear Wednesday evening as internal discord over the issue within the Japanese government saw no clear sign of coming to an end. Officials at the ROC Foreign Ministry reiterated yesterday that Lee applied on Tuesday morning for a visa to visit Japan so that he could receive treatment for heart problems. Hideo Tarumi, secretary-general of the Interchange Association in Taipei, Tokyo's de facto embassy to Taiwan, said that nothing was finalized yet.

Arms Sales Talks to Go Ahead as Planned
(China Times, Apr. 11, 2001) U.S. State Department spokesman Richard Boucher Monday elaborated upon statements by Secretary of State Colin Powell, saying that if the crew of the U.S. Navy EP-3 surveillance aircraft downed on April 1 cannot return home at an early date, Congress is certain to call for increased weapons sales by the U.S. to Taiwan, and it will be difficult not to link the two issues . The White House also commented that meetings between the United States and Taiwan over military sales will be held as scheduled at the end of April.

Qian to Urge Bush Not to Sell Arms to Taiwan
(NYT, Mar. 12, 2001) Deputy Premier Qian Qichen, the highest- ranking Chinese official to visit Washington in two years, is expected to urge President Bush next week not to sell more advanced weapons to Taiwan. "What we adhere to is one China that embraces the mainland and Taiwan," China Daily quoted him as saying on Friday. "We understand the aspirations of Taiwan compatriots to maintain the status quo."

China Raises Defense Budget
(CNN, Mar. 6, 2001) China has raised its defense budget by 17.7 percent for 2001 in a bid to improve its 2.5 million-strong People's Liberation Army. The hike, to a spending of 140 billion yuan ($17 billion), was revealed in the National People's Congress (NPC) budget report delivered by Finance Minister Xiang Huaicheng. The military has spoken out in defense of the boost, saying it should not cause alarm among neighboring countries. "China's military outlay is smaller than those of the United States, the United Kingdom and Japan," said General Song Qingwei.

Beijing Ratifies Rights Treaty, but Has Qualifications
(Washington Post, Mar. 1, 2001) China ratified a U.N.-sponsored human rights treaty today that requires it to ensure its citizens have access to food, medical care, housing and education, but appeared to back away from a key provision that would guarantee workers the right to strike and form independent labor unions. The qualified endorsement of the International Covenant on Economic, Social and Cultural Rights was the latest in a series of ambiguous signals that China has sent on human rights questions as it pursues a bid to hold the 2008 Summer Olympics and prepares to fight a U.S.-led motion against it at a U.N. rights conference in March.

China Aids Pakistani, 'Rogue' Missile Programs, CIA Says
(Washington Times, Feb. 28, 2001) China continued to send "substantial" assistance to Pakistan's missile program during the first half of 2000 and also aided missile programs in Iran, North Korea and Libya, according to a CIA report. "Chinese missile-related technical assistance to Pakistan continued to be substantial during this reporting period," the CIA said in its semiannual report to Congress on arms proliferation.

China Tells Germany the World Should Be a "Multi-Polar" One
(AFP, Feb. 20, 2001) Chinese President Jiang Zemin told visiting German Defence Minister Rudolf Scharping Tuesday that China advocates building a multi-polar world and was strongly against a world dominated by the United States. China is using the visit to reiterate to Germany its strong opposition against Washington's plans to build a system to protect itself against missile attacks, the national defence system (NMD). Beijing hopes Germany will back its opposition to the US plan.

Chen Sees Benefit in 'Interim Agreement'
(Taipei Times, Feb. 16, 2001) Signing any "interim agreement" between Beijing and Taipei could help improve cross-strait ties, although such a deal was not the ultimate solution to the standoff between the two sides, President Chen Shui-bian told visiting former US state department official Stanley Roth yesterday. "If during the first phase of contact, both sides work out an agreement or arrangement, then during the second phase we should respect the people's choice [here in Taiwan]. Any deal should have the consent or acceptance of the people because Taiwan is a democratic country. The future [of Taiwan] should not be jointly determined by the people of the two sides," Chen said.

ROC Navy Barred from Marshall Islands
(CNA, Feb. 16, 2001) United States veto of a visit to the Marshall Islands by a fleet of ROC Navy vessels has angered officials here who said Thursday the U.S. was violating the Pacific nation's sovereignty. Invoking its defense veto power under the Compact of Free Association for the first time since it was implemented in 1986, the U.S. State Department informed Marshall Islands officials that the visit of three ROC cadet-training vessels scheduled for May would not be permitted.

Poll Shows Americans Would Oppose Using Troops to Defend Taiwan
(CNA, Feb. 14, 2001) A new survey shows that 51 percent of Americans would oppose U.S. military intervention in the event of an invasion of Taiwan by mainland China, while 37 percent would support such an intervention. The results suggest that most Americans see it as in the U.S. national interest not to go to war with mainland China over Taiwan, says the Foreign Policy Association (FPA), the organization that conducted the opinion poll.

Chen Appeals to Beijing to Stop Threats of Force
(Taipei Times, Feb. 13, 2001) President Chen Shui-bian told Taiwan's military leadership that he will push for the country's economic and political integration with China if it renounces the use of force against Taiwan. Chen cautioned at the same time against a potential outbreak of war in the Taiwan Strait because of miscalculations by the Chinese leadership. "We can not ignore the fact that we are feeling greater pressure from China because of its growing ballistic missile forces, state-of-the-art weapons and overall arms build-up. They are still likely to miscalculate the situation and launch a war in the Strait."

Taiwan to Resume Work on Nuclear Power Plant
(AFP, Feb. 13, 2001) Taiwan's government on Tuesday agreed to resume work on a controversial nuclear power plant project, seeking to end months of political crisis sparked by the issue. Premier Chang Chun-hsiung forged the accord with parliamentary speaker Wang Jin-pyng, who was authorised by the opposition coalition to do so. "For the country's political stability and economic development ... we have decided to sign the agreement," Chang said. The four-point accord states that the 5.6 billion-US-dollar project should be reinstated immediately and that its budget decided through related regulations.

Former Premier Promotes Cross-Strait Common Market
(CNA, Feb. 12, 2001) Former Premier Vincent Siew said Monday he will form a special fund within a month to promote the formation of a "common market" between the two sides of the Taiwan Strait. The ex-premier said his idea of promoting a cross-strait common market stems out of his worry about Taiwan's deteriorating economic situation. "We must rely on market economy principles, rather than government policies, to cope with this adverse situation."

Taiwan, Singapore Step up Military Cooperation: Report
(AFP, Feb. 12, 2001) Taiwan and Singapore plan to renew military cooperation later this month despite China's efforts to woo the city state away from Taipei. The planned agreement, based on an existing programme known as "Operation Hsing Kuang" (Starlight), would continue to provide training venues for Singapore artillery, armoured vehicles and infantry units. Taiwan would also offer logistic support to Singapore units including maintenance of tanks and air defence missiles.

CIA Director Warns of Chinese Military
(Taipei Times, Feb. 9, 2001) China's military build-up could make relations across the Taiwan Strait more volatile in the future -- especially as Sino-Russian relations improve, the director of the CIA, George Tenet, said on Wednesday. In testimony to the US Senate Select Committee on Intelligence, Tenet said that political divisions within Taiwan were also complicating the cross-strait situation. He called Taiwan "the toughest issue" facing Sino-US relations.

Military to Build Arms, Reduce Forces
(Taipei Times, Feb. 8, 2001) National Defense Minister Wu Shih-wen announced an arms build-up program yesterday that will take place over the next five years. He also said that armed forces personnel will be downsized during the same period. "By 2006, we will further slim down the force number to 350,000. It is to be achieved through the yet-to-be implemented Chingching project, which is a follow-up of the Chingshih project," he said. Wu explained the program focuses on air and sea control and anti-amphibious landing attack capability.

Chinese Boat Sets off on First Official Trip to Taiwan in 50 Years
(AFP, Feb. 6, 2001) A Chinese ferry set off Tuesday on the first official trip to Taiwan-controlled territory since the end of a bloody civil war more than 50 years ago. Carrying 91 passengers, the Gulangyu left from the port of Xiamen in the southeastern province of Fujian for the tiny Taiwanese island of Quemoy [Kinmen] just a few kilometers (miles) off the coast of mainland China. Two Taiwanese vessels made the pioneering voyage from Quemoy to Xiamen on January 2, but Beijing has since prevaricated over whether to allow Chinese ships to make the return trip.

China Adding Missiles Aimed Toward Taiwan
(Washington Times, Feb. 5, 2001) China is continuing a destabilizing buildup of short-range missiles opposite Taiwan and now has up to 300 missiles deployed, according to a senior military official. The senior official, who spoke to The Washington Times on the condition of anonymity, also said Russia is supplying China with advanced ballistic-missile technology and strategic nuclear warhead know-how. "The candy store appears to be open," the official said. "The Russians will sell anything to the Chinese that the Chinese want to buy, and that's what bothers me."

U.S. Says It Will Continue to Back Human Rights in China, Help Taiwan Defend Itself
(AFP, Feb. 5, 2001) The United States reiterated Sunday that it remained committed to supporting human rights in China as well as to ensuring that Taiwan can defend itself. On Taiwan's anticipated request for U.S. guided missile destroyers fitted with Aegis combat weapons systems, Powell noted that "decisions on individual weapons systems (are made) in accordance with the Taiwan Relations Act" "We have an obligation to Taiwan to make sure their ability to defend itself remains constant."

Taiwan to Test-Fire Supersonic Ship-to-Ship Missile: Report
(AFP, Feb. 4, 2001) Taiwan's weapons researchers plan to test-fire their supersonic Hsiungfeng III anti-ship missiles at a military exercise in April. The test, to coincide with the island's biggest annual military exercise codenamed "Hankuang 17 (Han Glory)," would be conducted at the military base of Chiupeng in the southern-most county of Pingtung, the China Times Express evening newspaper said. It said the missile was designed to cruise at twice the speed of sound, allowing it to match that of SS-N-22 Sunburn ship-to-ship missiles now armed on China's two Russia-built Sovremenney (Modern) class destroyer.

New Anti-Ship Missile to be Tested in April
(Taipei Times, Feb. 2, 2001) The military plans to test-fire the domestically developed Hsiung Feng-III anti-ship missile in April as part of the final trials of the new weapon system before putting it into service, according to defense sources. The test-firing is to take place off the east coast to coincide with the Hankuang No. 17 joint-force exercise, which will be launched around the same time in southern Taiwan.

Air Force Plans Reforms to Tackle Pilot Shortage
(Taipei Times, Jan. 31, 2001) Taiwan's air force announced yesterday its decision to launch a series of major systematic reforms including the extension of minimum service for pilots from eight to 14 years. The move was made to help combat a growing shortage of fighter pilots. At the same time the air force plans to widen pilot recruitment channels, said Colonel Shen Chen-yu, a section chief of the personnel department with the Air Force General Headquarters.

Cross-Strait Data Up 27pc as Bans Ease
(South China Morning Post, Jan. 30, 2001) Taiwan's trade with the mainland surged 27.2 per cent to US$29.77 billion in the first 11 months of last year, compared with the period a year earlier. Taiwan's trade surplus with the mainland rose 20 per cent year on year to US$18.28 billion in the 11-month period, as exports to China totalled US$24.03 billion, up 24.3 per cent, while imports from the mainland rose 40.5 per cent to US$5.75 billion, according to Taiwan's Board of Foreign Trade.

Space Is Playing Field For Newest War Game
(Washington Post, Jan. 29, 2001) Spurred by the increased reliance of the U.S. military and the U.S. economy on satellites, and facing a new secretary of defense, Donald H. Rumsfeld, who is more focused on space than his predecessors were, the Air Force's Space Warfare Center here staged the military's first major war game to focus on space as the primary theater of operations, rather than just a supporting arena for combat on earth. The scenario was growing tension between the United States and China in 2017.

US Helps Taiwan Upgrade Intelligence Network: Report
(AFP, Jan. 29, 2001) The United States has helped Taiwan improve its ability to collect and process military intelligence despite a lack of diplomatic ties between Taipei and Washington. The London-based Jane's Defense Weekly said in its latest issue that the US National Security Agency (NSA) had completed a five-year upgrade of, and a training program at, a data processing centre at a Taiwan military compound.
The centre was also named as the Taiwan headquarters for a US telecommunications company based in Maryland, which is a commercial front for the NSA.

Japan Asked to Curb Taipei-Beijing Conflict
(CNA, Jan. 28, 2001) U.S. Secretary of State Colin Powell urged his visiting Japanese counterpart Yohei Kono in a meeting to help jointly check mutual provocation between Taipei and Beijing, a senior Japanese Foreign Ministry official said here Friday. At a briefing held for Japanese reporters after the working lunch between Powell and Kono, the official, who asked not to be named, quoted Powell as saying that the United States and Japan should hold close discussions if they are to be successful in urging Taiwan and mainland China to refrain from provoking each other.

Powell, Japanese Foreign Minister Discuss Asian Security
(CNN, Jan. 27, 2001) Asian security issues were the main topic as U.S. Secretary of State Colin Powell met with Japanese Foreign Minister Yohei Kono. China's growth, North Korea's missiles and a possible treaty between Japan and Russia were topics touched on during the 45-minute-long meeting, one of the first high-level diplomatic contacts Powell has made since taking his new post. "It was no accident that Japan was one of the first meetings," one State Department official told CNN. "Japan is the cornerstone of our Asia policy."

U.S. Insists China Policy is Unchanged
(AFP, Jan. 26, 2001) The new U.S. administration of George W. Bush has not changed policy toward China, a spokesman said Thursday as a row raged with Beijing over its crackdown on the Falun Gong spiritual group. Hours after China told Washington to stop interfering in its internal affairs, State Department spokesman Richard Boucher said the U.S. attitude to China remained consistent under new Secretary of State Colin Powell.

China Fights Losing Battle to Censor Cyberspace
(Straits Times, Jan. 22, 2001) As more Internet-savvy Chinese become increasingly adept at surfing through cyberspace, China may find itself fighting a losing battle to impose a news blockade on sensitive issues. The debate that is now raging online, following the release of the Tiananmen Papers, shows that growing numbers of people are turning to the Internet to discuss, in particular, sensitive political issues.

Ship's Trip Through the Strait Confirmed
(Taipei Times, Jan. 19, 2001) The second Sovremenny-class guided-missile destroyer bought by China from Russia passed through the Taiwan Strait last week under the watchful eye of Taiwan's military, Minister of National Defense Wu Shih-wen confirmed yesterday. The final destination of the new destroyer is reported to be Qingdao in Shandong province, where it will serve as part of the North Sea fleet of the Chinese navy.

China Warns US to Keep Taiwan Out of Any Missile Defense
(AFP, Jan. 18, 2001) "China's government and people are strongly opposed to the inclusion of Taiwan into the US Theatre Missile Defense system," foreign ministry spokesman Zhu Bangzao said. "If the United States is bent on its plan to include Taiwan in its TMD system, it will constitute a wanton interference and threat to Chinese sovereignty and security." Zhu's statements came only hours after Secretary of State-designate Colin Powell said the Bush administration would move ahead with TMD technology.

Powell Reiterates Support for Peace in Strait
(United Daily News, Jan. 18, 2001) During his confirmation hearing on Capitol Hill, U.S. Secretary of State-designate Colin Powell stated that Taiwan is a part of "China," and that, apart from resorting to armed conflict, how Taipei and Beijing choose to resolve their differences is up to the two sides to decide. Powell said: "We (the United States) expect and demand a peaceful settlement (to the mainland China-Taiwan conflict), one that is acceptable to people on both sides of the Taiwan Strait."

Vice President Annette Lu Seeks to Cool "China Fever"
(Reuters, Jan. 18, 2001) Taiwan's outspoken Vice President Annette Lu tried to cool enthusiasm among local firms to invest in rival China on Thursday, saying they could blindly expose themselves to great risk. "Blindly following the mainland fever without knowing the risk is not something a wise man does," Lu told an economic forum. However, Lu said fear over any military conflicts in the Taiwan Strait may be overdone and Beijing would not start a war "without any reason".

Taiwan's Patriots To Be Test-Fired
(CNA, Jan. 17, 2001) Ministry of National Defense official confirmed yesterday that the military has completed deployment of the Patriot anti-missile defense systems and will test-fire the new defensive weapon later this year. Taiwan has purchased three sets of U.S.-made modified air defense systems (MADS), also known as "Patriot PAC-2 plus," and deployed them in Nankang, Wanli and Linkou to protect the heavily populated greater Taipei area. The ministry has designated 2001 as the "year of training" aimed at upgrading the training efficacy and overall combat capabilities.

Government Won't Resume Nuclear Plant Construction: DPP
(CNA, Jan. 17, 2001) The Democratic Progressive Party (DPP) and anti-nuclear groups yesterday rallied behind the government's decision to scrap construction of the island's fourth nuclear plant. One day after the Council of Grand Justices ruled that the Executive Yuan failed to consult the Legislature before announcing the abolishment of the nuclear plant, the ruling DPP said that there is no question of restoring the construction of the power plant before Premier Chang Chun-hsiung reports to the Legislative Yuan as demanded by the grand justices.

China's Unmanned Spacecraft Returns Safely
(Reuters, Jan. 16, 2001) China's unmanned Shenzhou II spacecraft returned safely to earth Tuesday after a seven-day mission, part of a program to put astronauts into space in the next five years. The spacecraft carried animals and microbial cells for experiments on the impact of space on various life forms to ensure it could carry humans into space safely, the report said.

Taiwan Plans Army Exercises in Face of Chinese Military Threat
(AFP, Jan. 16, 2001) Taiwan's defense ministry said Tuesday it had scheduled a series of exercises to beef up its combat readiness in the face of China's military threats. The island's annual Han Kung (Han Glory) 17 exercise, the largest of its kind, will be held between March and April to test Taiwan's combat capability. The exercise would also test Taiwan's weaponary system as the ministry had scheduled to complete a restructure plan likely to trim troop numbers to between 400,000 and 380,000 by June 2001

Presidential Office, Cabinet Accept Ruling
(China Post, Jan. 16, 2001) Both the Executive Yuan and the Presidential Office yesterday expressed full respect for the Council of Grand Justices' ruling on the constitutionality of the Cabinet's decision to halt work on the Fourth Nuclear Power Plant. The Cabinet stressed that the justices' verdict does not clearly specify that the executive branch violated the constitution, while the Presidential Office lauded the constitutional interpretation as setting an excellent example for settling policy disputes between the executive and legislative branches.

Scrapping of Nuke Plant Need Legislative Approval: Grand Justices
(CNA, Jan. 15, 2001) Taiwan's Council of Grand Justices ruled that the Executive Yuan did not follow due process of law in abolishing the island's fourth nuclear plant.
Stopping short of branding the decision unconstitutional, the ruling calls for the Executive Yuan to follow the correct procedure "as soon as possible" by reporting to the legislature and seeking its approval.

China Builds New Missile Base Across Taiwan, Report Says
(AFP, Jan. 15, 2001) China is building a base in a southeastern city for advanced long-range ground-to-air missiles, a move feared to weaken Taiwan's air defense capabilities. The base, built in Zhangzhou of Fujian province, would be used for deployment of Russia-made S-300MPU missiles which have a minimum range of 90 kilometers (56 miles), the United Daily News quoted intelligence information as saying.

Taiwan Ill-prepared for China's Any "First Strike"
(AFP, Jan. 14, 2001) Taiwan is ill-prepared for a military first strike by rival China despite continuous efforts by the island to build up its defenses, it was reported Sunday. "Taiwan's air and naval bases, radar stations, and other major military facilities were weak in the capability of resisting bombing," the Taipei-based China Times quoted a military source as saying.

Jesse Helms Vows a Fresh Push for TSEA This Year
(Taipei Times, Jan. 13, 2001) US Senate Foreign Relations Committee chairman Jesse Helms said that passage of the Taiwan Security Enhancement Act (TSEA) will be one of his committee's top priorities in this year's congressional session. Helms blasted outgoing President Bill Clinton for having "repeatedly let down our friends in Taiwan" by going to China and enunciating his so-called "three no's" policy while there, and by failing to supply Taipei with sufficient arms under the Taiwan Relations Act.

Taiwan Urges US to Be More Active in Cross-Strait Issues
(AFP, Jan. 12, 2001) Taiwan President Chen Shui-bian Friday urged Washington to play a more active role in cross-Strait affairs, a statement said. "We are prepared to reopen dialogue (with China) for negotiations. The United States can play a more aggressive role as a peace envoy, a balancer or a stabilizer between the two sides of the strait."

Outgoing U.S. Officials Criticize Beijing and Taipei
(Reuters, Jan. 12, 2001) The United States said on Thursday that Beijing and the new Taiwan government have failed to understand each other, damaging prospects for the cross-strait dialogue which Washington advocates. Assistant Secretary of State Stanley Roth put most of the blame on Beijing, saying it had "essentially embarked upon a very clumsy united front strategy" by trying to court Taiwanese opposition parties and ignore the Taiwanese government.

Beijing Calls on Washington to Scrap Missile Shield Plan
(Reuters, Jan. 12, 2001)
China called on the United States on Friday to abandon as soon as possible plans to build a system to protect it against missile attacks.  ''We hope the United States will seriously heed the wise appeals of the international community and abandon as soon as possible the NMD plan,'' the Chinese Foreign Ministry said in a statement, referring to the US proposal to build a National Missile Defence.

China/Taiwan Policy Same Under Bush, U.S. Admiral Says
(Reuters, Jan. 11, 2001) U.S. policy on the China/Taiwan issue would be unchanged when George W. Bush becomes president, U.S. Pacific Command chief Admiral Dennis Blair said on Thursday. "The U.S. policy towards China has been pretty consistent through about six administrations, of both parties, and that's that we recognize one China and we say that the Taiwan issue should be resolved by peaceful means," Blair told a news conference.

China Slams "Irresponsible" Pentagon Weapons Report
(AFP, Jan. 11, 2001) China Thursday flatly rejected a Pentagon report accusing Chinese "entities" of selling ballistic missile or nuclear technology in defiance of non-proliferation agreements. The Pentagon report entitled "Proliferation: Threat and Response," said around a dozen countries were pursuing offensive biological and chemical weapons programs, mainly with help emanating from Russia and China.

Despite Softening Tone, China Sticks to Taiwan Hard Line
(AFP, Jan. 10, 2001) China has made some encouraging noises about Taiwan, but analysts believe it is merely playing to the incoming U.S. administration and has not altered its uncompromising stance on reunification. China fears the new US administration will provide more active support to Taiwan, especially in the area of arms sales, which could end up freezing the current military equilibrium between Beijing and Taiwan and prevent reunification by force.

Shanghai Deputy Mayor Arrives in Taiwan for 10-Day Visit
(AFP, Jan. 9, 2001) Shanghai's deputy mayor Feng Guoqin arrived in Taiwan Tuesday and pledged to help improve exchanges and links between the island and mainland China. Feng said he would inform Taiwan about business conditions and developments in science and technology within Shanghai during the trip, in an effort to strengthen bilateral ties.

Taiwan Is Likely to Ask the U.S. to Sell It 4 Destroyers
(New York Times, Jan. 8, 2001) Taiwan has signaled that it may ask the Bush administration to sell it four Kidd-class guided-missile destroyers to counter China's recently purchased Russian-made destroyers, the second of which is now steaming toward the Taiwan Strait. The request, likely to be made before the United States and Taiwan hold annual talks on arms sales in April, would present George W. Bush with his first major challenge in managing the delicate balance of relations between China and Taiwan.

'Political Integration' in Line with DPP Policy: Hsieh
(China Post, Jan. 8, 2001) Talk of "political integration" by President Chen Shui-bian during his New Year address is right in step with his party's basic platform, Democratic Progressive Party Chairman Frank Hsieh said over the weekend. Hsieh said that this idea was perfectly consistent with the DPP's stance of maintaining the status quo in cross-strait relations.

China Seen Warming to Direct Links
(Taipei Times, Jan. 7, 2001) China's Minister of Communications Hong Shanxiang said Beijing will define cross-strait shipping as "domestic routes under special management" after direct shipping is opened up between China and Taiwan. Under this principle, cross-strait shipping routes would be reserved for Taiwanese and Chinese ships only after both sides have entered into the WTO, Hong added.

Mainland Thinks 'Big' Rather Than 'Mini' Links
(South China Morning Post, Jan. 6, 2001) Senior Chinese officials sat down with Taiwanese opposition lawmakers yesterday, vowing to push for the opening of direct cross-strait links. Representatives of Taiwan's main opposition Kuomintang party quoted Chinese Vice-Premier Qian Qichen as saying that politics should not get in the way of the establishment of direct trade, transport and postal ties, known as the "three links".

Beijing Signals New Flexibility on Taiwan
(Washington Post, Jan. 5, 2001) China's top foreign policy official, Deputy Prime Minister Qian Qichen, signaled today that his country is willing to be more flexible on Taiwan and urged the incoming Bush administration not to view Beijing as a "strategic competitor." Asked if China would be willing to accept a loose confederation with the island of 23 million people, something Chinese officials ruled out years ago, Qian said: "Anything can be discussed." He went on to say that China has adopted a "pragmatic and more inclusive" version of its long-standing one-China policy, which holds there is only one China and Taiwan is part of it.

Kuomintang Chairman Proposes Cross-Strait Confederation
(CNA, Jan. 4, 2001) Opposition Kuomintang Chairman Lien Chan proposed a cross-strait commonwealth or confederation as a useful method of seeking political integration across the Taiwan Strait. At a press conference to introduce his new book "New Blueprint, New Dynamic", Lien said the idea of a confederation is worthy of consideration, because he said it would help uphold the mutual goal of reunification of Taiwan and mainland China, while at the same time retaining room for both sides to develop under separate political systems.

China Accuses Chen of Playing Politics Over Links
(AFP, Jan. 4, 2001) China Thursday accused Taiwanese President Chen Shui-bian of trying to dupe public opinion by opening limited direct links with the mainland and warned the measure would not lead to dialogue. A commentary in the People's Daily said Chen was trying to force a dialogue without accepting Beijing's condition for talks.

China Grudgingly Supports New Taiwan Links
(Reuters, Jan. 3, 2001) Chinese state media gave sparse coverage on Wednesday to the first legal voyage by Taiwanese ships to the Chinese mainland in 51 years, but one newspaper said Beijing would support the new transport links. Taiwan permitted three vessels from its frontline islands of Quemoy and Matsu to sail directly to the Chinese mainland on Tuesday, marking a small but symbolic step towards establishing full trade, transport and postal links between the rivals.

New Rules on Cross-Straits Trade
(People's Daily, Jan. 2, 2001) China issued a set of rules governing trade across the Taiwan Straits, which trade officials say will "enable cross-Straits trade and economic cooperation to grow in a sound, orderly manner." The rules, in 15 provisions, specify the guiding principles, ways of management and disputes settlement concerning cross-Straits trade. MOFTEC Assistant Minister An Min said that drafting of the new rules were based on three principles: the principle of "one China,two systems," the principle of the market economy, and the principle of consistency with existing rules.

Taiwanese Ships Arrive in China
(AP, Jan. 2, 2001) Three Taiwanese ships made the first direct legal voyages to mainland China in 51 years on Tuesday, carrying government officials and religious pilgrims, and raising hopes for better relations. Taiwan lifted a ban on crossings from Kinmen and Matsu on New Year's Day, legalizing a trade carried on for years by smugglers. The lifting of some travel restrictions could lead eventually to direct transportation across the 100-mile-wide Taiwan Strait between China and the main island of Taiwan – which remains banned.

Taiwanese Boat Heads Back to Taiwan
(AP, Jan. 1, 2001) A Taiwanese tourist boat that had set sail for China to end a five-decade ban on direct travel between the longtime rivals turned back to Taiwan later Monday. The reason for scrapping the voyage was not immediately clear. Taiwanese officials blamed bad weather in the narrow straits between the tiny islet of Kinmen and China's southeastern port of Xiamen. But a port official in Xiamen, who refused to be named, said he believed the trip was canceled for political reasons, saying neither Taiwan nor China wanted to have direct links inaugurated by a private group.

Chen Extends Olive Branch to Beijing:  'One-China' principle 'no problem for Taiwan's constitution'
(South China Morning Post, Jan. 1, 2001) Taiwan President Chen Shui-bian ushered in the New Year yesterday by extending another olive branch to Beijing. In a 15-minute televised speech, Mr Chen indirectly embraced a proposal by a top advisory body that Taiwan should look to its constitution to find a way to accommodate Beijing's insistence on the "one China" principle as a prerequisite for talks. "According to the constitution of the Republic of China, 'one China' is originally not a problem," Mr Chen said in the videotaped speech aired at 6pm.