DATE=5/20/2000
TYPE=CORRESPONDENT REPORT
TITLE=CHINA-TAIWAN (L)
NUMBER=2-262601
BYLINE=LETA HONG FINCHER
DATELINE=BEIJING
CONTENT=
VOICED AT:


INTRO:  China is signaling that dialogue with Taiwan 
may go ahead even after the inauguration of a new 
democratically elected president on the island.  As V-
O-A's Leta Hong Fincher reports, Beijing's diplomatic 
signal today/Saturday was accompanied by accusations 
that Taiwanese President Chen Shui-bian was being 
evasive on the subject of unification with China.


TEXT:  China's official reaction to the Taiwanese 
President's speech accuses President Chen Shui-bian of 
being evasive and ambiguous toward what it calls the 
key issue of accepting that Taiwan is a part of China.  
But in a statement broadcast on China's state-run 
television, Beijing also held out the possibility of 
an easing of tensions between the two sides.

            /// CHINA TV ACT. IN CHINESE, FADE  UNDER 
///

The statement says China is willing to hold dialogue 
with organizations or people entrusted by the Taiwan 
side, if Taiwanese leaders give up their insistence on 
negotiating with China as an equal, sovereign state, 
and if Taiwan returns to an earlier understanding 
between the two sides on the definition of one-China.

Michael Yahuda, a China analyst at the London School 
of Economics, says China's new response is more 
moderate in tone than many expected.  He says that the 
statement is promising, because for now at least, 
Beijing is not threatening military action against 
Taiwan.

            /// YAHUDA ACT ONE ///

      The Chinese are trying now to show that they are 
      more flexible than many people thought, and also 
      that they are thinking seriously as to how to 
      begin -- or resume, rather -- talks between the 
      two sides.

            /// END ACT ///

In the weeks leading up to Taiwan's presidential 
inauguration, China's official media repeatedly warned 
of what was called "disaster" if Taiwan refused to 
accept the one-China principle - that there is only 
one China and that Taiwan is a part of it.  But 
Saturday's statement contained much milder language.

Mr. Yahuda says Beijing is now proposing that both 
sides explore what each means by "one China."  At the 
same time, he says China's leaders will find ways to 
test the new administration in Taipei, which is still 
unknown to them.

            ///YAHUDA ACT TWO ///

      I think what will happen now is that there will 
      be semi-official talks about talks, in which 
      each side will have people who are close to the 
      leaders and who can go and sound the other side 
      out as to how much room for flexibility there 
      may be for resuming talks.

            /// END ACT ///

Mr. Yahuda also says Beijing's restraint could be due 
to next week's vote in the U-S House of 
Representatives on legislation granting China 
permanent normal trade status, which would smooth the 
way for China's entry to the World Trade Organization.   
(signed)

NEB/LHF/JP




20-May-2000 08:20 AM EDT (20-May-2000 1220 UTC)
NNNN

Source: Voice of America
.