Weapons of Mass Destruction (WMD)

DATE=01/03/01

TYPE=CORRESPONDENT REPORT

TITLE=TAIWAN CHINESE REACT L-O

NUMBER=2-270994

BYLINE=JIM RANDLE

DATELINE=BEIJING

CONTENT=

VOICED AT:

INTRO: China's official media is giving a noticeably muted reaction to Taiwan's ending a longstanding ban on direct travel to the Mainland. Tuesday the first boats in a half century traveled legally from Taiwan to China. And V-O-A's Jim Randle reports Beijing says Taipei's move is not adequate.

TEXT: The People's Daily newspaper, which speaks for the ruling Communist Party in China, put its brief stories on a back page. Most other

state media handled coverage Wednesday in a similar fashion.

This contrasts sharply to international and Taiwanese media attention given to Tuesday's landmark opening of direct travel between Taiwan and China.

Several small passenger ships bearing hundreds of people sailed from the Taiwan-controlled islands of Quemoy and Matsu to the Chinese mainland.

Until last month, Taiwan's laws have blocked such direct journeys ever since nationalist troops lost the bitter Chinese civil war in 1949 and were forced to retreat to Taiwan, a large island more than 100 kilometers off the coast.

There have been substantial trade and investment links between Taiwan and China for years, but most of it had to make expensive detours through third parties, generally Hong Kong. There has also been quite a bit of smuggling between the two sides since the 1980's.

But Taiwan's limited move falls far short of Beijing's demand for full, direct transport and commercial contacts. Beijing is also displeased that Chinese ships are still barred from Taiwan which it considers to be a renegade Chinese province.

Nevertheless analysts say Tuesday's brief voyages will help reduce tensions between China and Taiwan, which spiked again last year when voters elected a formerly pro-independence candidate as president.

But experts note that by Beijing downplaying the voyages they are hoping to limit political gains President Chen Shui-bian could win from policies that warm relations with the mainland without sacrificing Taiwan's de facto independent status.

President Chen is beset by numerous political troubles - including possible impeachment, a financial crisis, and unpopularity with the voters at home. (Signed)

NEB/HK/JR/JO