DATE=7/16/99
TYPE=CORRESPONDENT REPORT
NUMBER=2-251838
TITLE=TAIWAN / AUSTRALIA (L-O)
BYLINE=CHRIS SIMKINS
DATELINE=HONG KONG
CONTENT=
VOICED AT: 

INTRO: AUSTRALIA'S FOREIGN MINISTER ALEXANDER DOWNER SAYS CHINA 
AND TAIWAN SHOULD TAKE STEPS TO REDUCE CROSS-STRAIT TENSIONS.  
MR. DOWNER'S COMMENTS WERE MADE TODAY (FRIDAY) IN HONG KONG 
FOLLOWING HIS RECENT TRIP TO BEIJING.  V-O-A CORRESPONDENT CHRIS 
SIMKINS HAS MORE ON THE STORY. 

TEXT: AUSTRALIAN FOREIGN MINISTER DOWNER SAYS AN ESCALATION IN 
TENSIONS BETWEEN CHINA AND TAIWAN IS CAUSING CONCERN THROUGHOUT 
THE ENTIRE ASIA-PACIFIC REGION.  SPEAKING IN HONG KONG FRIDAY, 
AFTER A VISIT TO MAINLAND CHINA, MR. DOWNER SAID THE CURRENT 
SITUATION COULD ONLY BE RESOLVED BY BEIJING AND TAIPEI. HIS 
COMMENTS COME LESS THAN A WEEK AFTER TAIWAN OUTRAGED CHINA BY 
FORMALLY ABANDONING IT SO-CALLED "ONE CHINA" POLICY.     /// OPT 
/// THE POLICY HAS BEEN THE FOUNDATION OF TAIPEI-BEIJING 
RELATIONS FOR DECADES AND SAID CHINA AND TAIWAN WERE A PART OF 
THE SAME COUNTRY AND SHOULD SEEK EVENTUAL REUNIFICATION. BEIJING 
CONSIDERS TAIWAN A RENEGADE PROVINCE.  /// END OPT ///

FOLLOWING TAIWAN'S MOVE, BEIJING AGAIN RENEWED ITS THREAT TO  
RETAKE THE ISLAND BY FORCE IF IT DECLARED INDEPENDENCE.  ON 
THURSDAY, THE UNITED STATES WARNED CHINA THAT IT WOULD NOT 
TOLERATE A VIOLENT SOLUTION TO THE FUTURE OF TAIWAN.  MR. DOWNER 
SAYS WHILE AUSTRALIA HAS A MILITARY ALLIANCE WITH THE UNITED 
STATES, THE CURRENT DISPUTE COULD ONLY BE RESOLVED BY BEIJING AND
TAIPEI.  

                       /// DOWNER ACT ///

         IT IS EXCESSIVE AND INFLAMMATORY TO START GETTING INTO 
         THE DISCUSSIONS ABOUT THE UNITED STATES USING ITS 
         MILITARY IN THE TAIWAN STRAITS.  FOR OTHER COUNTRIES TO 
         START TALKING ABOUT USING THEIR MILITARY AND WHAT 
         DEFENSE ALLIANCES WE WILL HAVE IS HARDLY LIKELY TO HELP 
         THE SITUATION. THE POINT I HAVE BEEN MAKING IN BEIJING, 
         IS THAT WE (AUSTRALIA) WANT TO SEE PROGRESS MADE IN 
         RECONCILIATION BETWEEN BEIJING AND TAIPEI.

                        /// END ACT /// 

CHINESE PRESIDENT JIANG ZEMIN WILL MAKE HIS FIRST VISIT TO 
AUSTRALIA IN SEPTEMBER WITH A GROUP OF BUSINESS LEADERS. 

                        /// REST OPT ///

THE FALLOUT FROM TAIWAN ABANDONING THE "ONE CHINA" POLICY AND 
RUMORS OF CHINA'S HEIGHTENED MILITARY READINESS AGAINST THE 
ISLAND CONTINUES TO SHAKE INVESTOR CONFIDENCE. TAIWAN'S STOCK 
MARKET FELL MORE THAN SIX PERCENT FRIDAY BRINGING DOWN THE VALUE 
OF THE TAIPEI INDEX BY MORE THAN 12 PERCENT FOR THE WEEK. 
(SIGNED)

NEB/CS/JO

16-Jul-99 6:16 AM EDT (1016 UTC)
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Source: Voice of America
.