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DATE=7/19/99
TYPE=CORRESPONDENT REPORT
NUMBER=2-251904
TITLE=TAIWAN REACT (L-O)
BYLINE=KENDALL BUHL
DATELINE=TAIPEI
CONTENT=
VOICED AT: 
INTRO:  TAIWANESE DEFENSE OFFICIALS ARE DENYING REPORTS THAT THE 
ISLAND'S MILITARY FORCES HAVE BEEN PUT ON ALERT IN RESPONSE TO 
CHINA'S THREATS OF POSSIBLE FORCE.  RELATIONS BETWEEN CHINA AND 
TAIWAN TOOK A MAJOR DIVE EARLIER THIS MONTH AFTER TAIWAN 
ANNOUNCED IT WAS ABANDONING  ITS "ONE CHINA" POLICY AND WANTED 
BEIJING TO TREAT IT AS AN EQUAL.  KENDALL BUHL HAS MORE FROM 
TAIPEI.
TEXT: THE DEFENSE MINISTRY IN TAIPEI SAYS CHINESE MEDIA REPORTS 
THAT TAIWAN MILITARY FORCES, OCCUPYING THE OFF-SHORE ISLAND OF 
MATSU, ARE ON HIGH ALERT ARE RUMORS.
BUT ANALYSTS ARE SKEPTICAL, SAYING MATSU -- JUST LITTLE MORE THAN
A KILOMETER AWAY FROM MAINLAND CHINA -- WOULD BE THE FIRST LINE 
OF DEFENSE SHOULD BEIJING DECIDE TO SEND IN TROOPS.
CHINA SAYS IT WILL USE FORCE IF NECESSARY TO STOP TAIWAN -- WHICH
IT CONSIDERS A RENEGADE PROVINCE -- FROM FORMALLY MOVING TOWARD 
INDEPENDENCE. 
TAIWAN INSISTS  PRESIDENT LEE TENG-HUI'S DECLARATION THAT 
BEIJING-TAIPEI RELATIONS BE CONDUCTED ON A STATE-TO-STATE BASIS  
IS NO THREAT TO THE GOAL OF REUNIFYING THE TWO CHINESE 
TERRITORIES.   BUT TAIWAN SAYS IT WILL ONLY EMBRACE A DEMOCRATIC 
CHINA AND, IN THE MEANTIME, WANTS TO END ITS DIPLOMATIC 
ISOLATION. // OPT //  CHINA ROUTINELY BREAKS TIES WITH ANY 
COUNTRY THAT EXTENDS DIPLOMATIC RECOGNITION TO TAIWAN. // END OPT
//
THE UNITED STATES IS LEADING THE CALL FOR THE TWO SIDES TO 
RESOLVE THESE DIFFERENCES BY PEACEFUL MEANS AND TO AVOID ANOTHER 
CRISIS.  IN 1996, CHINA ENGAGED IN LIVE-FIRE MILITARY EXERCISES 
DURING TAIWAN'S PRESIDENTIAL ELECTIONS, PROMPTING THE UNITED 
STATES TO DISPATCH AIRCRAFT CARRIERS TO THE REGION.
TAIWAN'S DEFENSE MINISTRY SAYS IT HAS  NO  REASON TO BELIEVE 
THERE WILL BE A REPEAT OF THAT INCIDENT AND IS ALSO DISMISSING 
CHINESE MEDIA REPORTS THAT CHINA HAS BEGUN LARGE SCALE MILITARY 
EXERCISES NEAR THE TAIWAN STRAIT. 
THE SABRE-RATTLING IN THIS LATEST DISPUTE HAS WREAKED HAVOC ON 
TAIWAN'S STOCK EXCHANGE -- WHICH HAS FALLEN CLOSE TO 13 PERCENT 
IN THE LAST WEEK.
NEB/KB/JO/PLM
   
19-Jul-99 6:19 AM EDT (1019 UTC)
NNNN
Source: Voice of America
.