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III. The Chinese
Government's Basic Position
Regarding Settlement
of the Taiwan Question

To settle the Taiwan question and achieve national reunification --this is a sacrosanct mission of the entire Chinese people. The ChineseGovernment has persistently worked towards this end since the foundingof the People's Republic. Its basic position on this question is: peacefulreunification; one country, two systems.

Peaceful reunification; one country, two systems -- how has thisposition been formulated? The Chinese Government conceived a peacefulsettlement of the Taiwan question as early as in the 1950s. In May 1955the late Premier Zhou Enlai said at a NPC Standing Committee meeting thattwo alternatives were open to the Chinese people for the solution of theTaiwan question -- by resort to war or by peaceful means. The Chinese peoplewould strive for a peaceful solution wherever possible, he affirmed. InApril 1956 the late Chairman Mao Zedong put forward thoughts for policymakingsuch as "peace is the best option", "all patriots are ofone family" and "it is never too late to join the ranks of patriots".However, those wishes have not come to fruition for reasons such as interferenceby foreign forces.

Major changes took place in and outside China in the 1970s. Diplomaticties were established and relations normalized between China and the UnitedStates. The Third Plenary Session of the Eleventh Central Committee ofthe Communist Party of China decided to shift the focus of the work ofthe Party and the State to the economic modernization programme. In themeantime, people on both sides of the Taiwan Straits, compatriots of HongKong and Macao as well as overseas Chinese and people of Chinese descentall expressed their fervent hope that the two sides of the Straits wouldjoin hands to work for a resurgence of China. It was against this historicalbackground that the Chinese Government formulated the position of "peacefulreunification; one country, two systems". The position takes the overallnational interests and the future of the country into consideration. Itrespects history as well as the prevailing situation. It is realistic andtakes care of the interests of all.

On 1 January 1979 the Standing Committee of the National People's Congressof the People's Republic of China issued a message to compatriots in Taiwan,pronouncing the Chinese Government's basic position regarding peacefulsettlement of the Taiwan question. It called for the holding of talks betweenthe two sides of the Straits to seek an end to the military confrontation.It pledged that in the pursuit of national reunification, the Government"will respect the status quo on Taiwan and the views of people ofall walks of life there and adopt reasonable policies and measures".

In a statement on 30 September 1981 the late Chairman Ye Jianying ofthe NPC Standing Committee further elaborated the policy and principlesfor the settlement of the Taiwan question. He affirmed that "afterthe country is reunified, Taiwan can enjoy a high degree of autonomy asa special administrative region" and proposed that talks be held onan equal footing between the ruling Parties on each side of the Straits,namely, the Chinese Communist Party and the Kuomintang.

Referring to Ye Jianying's remarks, Chinese leader Deng Xiaoping pointedout on 11 January 1982 that this in effect meant "one country, twosystems", i.e., on the premise of national reunification, the mainbody of the nation would continue with its socialist system while Taiwancould maintain capitalism.

On 26 June 1983 Deng Xiaoping further enunciated the concept of peacefulreunification, stressing that the crucial point was national reunification.He went on to expound the Government's policy on reunification and on thecreation of a Taiwan special administrative region.

On 12 October 1992 General Secretary Jiang Zemin of the CPC CentralCommittee pointed out: "We shall work steadfastly for the great cause,adhering to the principles of peaceful reunification and 'one country,two systems' ... ... We reiterate that the Chinese Communist Party is readyto establish contact with the Chinese Kuomintang at the earliest possibledate to create conditions for talks on officially ending the state of hostilitybetween the two sides of the Taiwan Straits and gradually realizing peacefulreunification. Representatives from other parties, mass organizations andall circles on both sides of the Taiwan Straits could be invited to joinin such talks."

Basic Contents of "peaceful reunification; one country, twosystems". This position is an important component of the theoryand practice of building socialism with Chinese characteristics and a fundamentalstate policy of the Chinese Government which will not change for a longtime to come. Its basic contents are as follows:

1. Only one China. There is only one China in the world, Taiwanis an inalienable part of China and the seat of China's central governmentis in Beijing. This is a universally recognized fact as well as the premisefor a peaceful settlement of the Taiwan question.

The Chinese Government is firmly against any words or deeds designedto split China's sovereignty and territorial integrity. It opposes "twoChinas", "one China, one Taiwan", "one country, twogovernments" or any attempt or act that could lead to "independenceof Taiwan". The Chinese people on both sides of the Straits all believethat there is only one China and espouse national reunification. Taiwan'sstatus as an inalienable part of China has been determined and cannot bechanged. "Self- determination" for Taiwan is out of the question.

2. Coexistence of two systems. On the premise of one China, socialismon the mainland and capitalism on Taiwan can coexist and develop side byside for a long time without one swallowing up the other. This concepthas largely taken account of the actual situation in Taiwan and practicalinterests of our compatriots there. It will be a unique feature and importantinnovation in the state system of a reunified China.

After reunification, Taiwan's current socio-economic system, its wayof life as well as economic and cultural ties with foreign countriescan remain unchanged. Private property, including houses and land, as wellas business ownership, legal inheritance and overseas Chinese and foreigninvestments on the island will all be protected by law.

3. A high degree of autonomy. After reunification, Taiwan willbecome a special administrative region. It will be distinguished from theother provinces or regions of China by its high degree of autonomy. Itwill have its own administrative and legislative powers, an independentjudiciary and the right of adjudication on the island. It will run itsown party, political, military, economic and financial affairs. It mayconclude commercial and cultural agreements with foreign countries andenjoy certain rights in foreign affairs. It may keep its military forcesand the mainland will not dispatch troops or administrative personnel tothe island. On the other hand, representatives of the government of thespecial administrative region and those from different circles of Taiwanmay be appointed to senior posts in the central government and participatein the running of national affairs.

4. Peace negotiations. It is the common aspiration of the entireChinese people to achieve reunification of the country by peaceful meansthrough contacts and negotiations. People on both sides of the Straitsare all Chinese. It would be a great tragedy for all if China's territorialintegrity and sovereignty were to be split and its people were to be drawninto a fratricide. Peaceful reunification will greatly enhance the cohesionof the Chinese nation. It will facilitate Taiwan's socio-economic stabilityand development and promote the resurgence and prosperity of Chinaas a whole.

In order to put an end to hostility and achieve peaceful reunification,the two sides should enter into contacts and negotiations at the earliestpossible date. On the premise of one China, both sides can discuss anysubject, including the modality of negotiations, the question of what Parties,groups and personalities may participate as well as any other matters ofconcern to the Taiwan side. So long as the two sides sit down and talk,they will always be able to find a mutually acceptable solution.

Taking into account the prevailing situation on both sides of the Straits,the Chinese Government has proposed that pending reunification the twosides should, according to the principle of mutual respect, complementarityand mutual benefit, actively promote economic cooperation and other exchanges.Direct trade, postal, air and shipping services and two-way visits shouldbe started in order to pave the way for the peaceful reunification of thecountry.

Peaceful reunification is a set policy of the Chinese Government. However,any sovereign state is entitled to use any means it deems necessary, includingmilitary ones, to uphold its sovereignty and territorial integrity. TheChinese Government is under no obligation to undertake any commitment toany foreign power or people intending to split China as to what means itmight use to handle its own domestic affairs.

It should be pointed out that the Taiwan question is purely an internalaffair of China and bears no analogy to the cases of Germany and Koreawhich were brought about as a result of international accords at the endof the Second World War. Therefore, the Taiwan question shouldnot be placed on a par with the situation of Germany or Korea. The ChineseGovernment has always opposed applying the German or Korean formulas toTaiwan. The Taiwan question should and entirely can be resolved judiciouslythrough bilateral consultations and within the framework of one China.