Weapons of Mass Destruction (WMD)

DATE=12-28-00

TYPE=CORRESPONDENT REPORT

NUMBER=2-270865

TITLE=CHINA TAIWAN - L

BYLINE=JIM RANDLE

DATELINE=BEIJING

CONTENT=

VOICED AT:

INTRO: Beijing and Taiwan are taking small steps toward historic

direct contacts, under a new plan to allow small numbers of people

to travel back and forth to the mainland. But as

V-O-A's Jim Randle reports, Beijing wants to move faster to

establish broader links that will have more economic impact.

TEXT: The first ships from Taiwan's small outlying islands are set

to head for the mainland January first, carrying Buddhist pilgrims,

journalists and others. Such direct contacts were banned by Taiwan

ever since China's Communists won the 1949 civil war and forced

defeated Nationalist troops to retreat to Taiwan, more than 100

kilometers off shore.

Earlier this month, Taiwan's cabinet approved a partial end to the

travel ban. Thursday, Chinese Foreign Ministry spokeswoman Zhang

Qiyue, speaking through a translator, confirmed that Beijing will go

along with the plan, even though it would prefer full trade,

transport, and postal links.

/// ZHANG QIYUE ///

This is not the comprehensive, free direct links between the

mainland and Taiwan side, neither can it satisfy the needs in

personnel and economic exchanges between the two sides.

/// END ACT ///

Ms. Zhang complained about 'restrictions' on the planned contacts

between the two sides.

China regards Taiwan as a breakaway province that should be brought

under control of the central government in Beijing, and has

threatened to use military force against the island if Taiwan's

government declares independence or moves too slowly toward

reunification.

Nevertheless, the agreement appears to be a slight warming of

relations between Beijing and Taiwan.

Businesses on prosperous Taiwan have invested tens of billions of

dollars in mainland Chinese firms, but must currently go through the

time consuming and expensive step of routing travel and trade

through Hong Kong or Macau rather than making the much shorter

direct trip. (Signed).

NEB/HK/JR/FC