DATE=3/10/2000 TYPE=CORRESPONDENT REPORT TITLE=COHEN CHINA -L NUMBER=2-260079 BYLINE=JIM RANDLE DATELINE=HONG KONG CONTENT= VOICED AT: INTRO: Defense Secretary William Cohen dismisses charges that Washington is encouraging Taiwan's independence from China. In a television interview, he urged Beijing to stop trying to intimidate the prosperous, democratic island. V-O-A's Jim Randle reports. TEXT: Defense Secretary William Cohen used a television interview (on CNN) to call the Chinese charges `an exaggeration.' He says U-S policy has not changed recently, and Washington expects China "to seek a peaceful resolution of the situation." Mr. Cohen was responding to accusations by the Chinese Foreign Minister (Tang Jiaxuan) blaming the United States for escalating tensions over Taiwan by selling some anti aircraft missiles and improved radars to the island. Washington is also considering a request to sell Taiwan some of America's best weapons, including missile systems and high tech ships that would provide some protection against the hundreds of Chinese ballistic missiles pointed at Taiwan. China also complains about a bill working its way through the U-S Congress calling for closer military ties between Washington and Taiwan. Tensions between China and Taiwan have been growing as the island's March 18th election draws closer. During Taiwan's last election campaign four years ago, China tried to intimidate independence-minded voters by firing missiles into the ocean near the island. The dispute between China and Taiwan goes back half a century to when Communists won the Chinese Civil War and defeated Nationalist forces retreated to Taiwan. China regards Taiwan as a rebellious province that must be reunited with the mainland, and has threatened military action if the island declares independence. Beijing recently said it might also attack if Taiwan showed it has no intention of ever reuniting with China. Defense Secretary Cohen made his comments in Hong Kong, where he is set to meet with the city's chief executive, Tung Chee-hwa on Saturday. Hong Kong was a British colony for 150 years, but reverted to Chinese control three years ago under an agreement that allowed the city to keep its prosperous market economy, democratic institutions, and local control of many political decisions, leaving matters of foreign policy and military affairs to officials in Beijing. A Senior U-S official based in Hong Kong says in spite the fears expressed in 1997, China has kept its promise to allow Hong Kong considerable autonomy. But Secretary Cohen says Hong Kong is `unique' and is not necessarily a model for Taiwan to follow. (Signed) NEB/PT 10-Mar-2000 18:07 PM EDT (10-Mar-2000 2307 UTC) NNNN Source: Voice of America .