March 8, 2005 - 10:00 AM

China calls force against Taiwan "last resort"

By John Ruwitch and Benjamin Kang Lim

BEIJING (Reuters) - China has unveiled an anti-secession bill that allows the use of military force to thwart any bid for independence by
Taiwan but seeks to ease U.S. concerns by leaving itself other options.

The bill has raised alarm bells in Taiwan, the United States and Japan, but diplomats and analysts said the draft's emphasis on
"non-peaceful" means as a last resort appeared designed to provide China alternatives to war, such as blockades or sanctions.

Beijing has claimed sovereignty over Taiwan since their split at the end of the Chinese civil war in 1949 and has threatened to attack the
democratic island of 23 million if it formally declares statehood.

The bill calls for the use of non-peaceful means should "major incidents" entailing Taiwan's secession from China occur, or should
possibilities for a peaceful reunification be completely exhausted, Wang Zhaoguo, a vice-chairman of parliament, told the law-making body.
He did not elaborate.

"Using non-peaceful means to stop secession in defence of our sovereignty and territorial integrity would be our last resort when all our
efforts for a peaceful reunification should prove futile," Wang said, quoting from the bill on Tuesday.

He said the bill was "necessary and timely", but added that China was still committed to peaceful reunification with Taiwan.

"So long as there is a glimmer of hope for peaceful reunification, we will exert our utmost to make it happen rather than give it up," said
Wang, who sits on the Communist Party's elite 24-member Politburo.

In Taipei, the bill sparked an expected angry response from the government.

"Communist China tries to use this bill to deny the sovereignty of the Republic of China and unilaterally change the status quo of the Taiwan
Strait," said Chiu Tai-shan, vice chairman of Taiwan's policy-making Mainland Affairs Council, using Taiwan's official name.

"It has caused tension in the region," he said, reading from a prepared statement at a news conference. "We voice our strongest protest."

Asked to comment, Taiwan Premier Frank Hsieh told parliament he supported revising sensitive parts of the constitution if China passed
the bill legalising an attack and including Taiwan as part of the People's Republic of China.

"SOFTEN THE BLOW"

But Chen Yuchun, a China expert at Taiwan's private Chinese Culture University, said: "'Non-peaceful means' is a lot more flexible and
could include economic sanctions, a blockade, and not necessarily refer to military conflict.

"The choice of words is certainly more moderate."

A Western diplomat in Beijing said: "The Chinese are doing the maximum they can now to soften the blow of this legislation. (But) they
certainly are not going to backtrack on passing it."

Taiwan stocks gave up earlier gains to close down 0.76 percent on Tuesday, but mainly on renewed fears over China's measures to cool its
economy.

Taiwan President Chen Shui-bian has called the legislation the biggest threat to regional stability. Thousands took part in a protest march
against the bill in southern Taiwan on Sunday.

The United States, the island's main arms supplier, and Japan have been alarmed about the implications for one of the world's hottest flash
points.

Chinese Foreign Minister Li Zhaoxing, who spoke to his U.S. counterpart Condoleezza Rice about Taiwan on Tuesday, said the issue was
China's business and China's alone.

"This is a domestic matter, our internal affair," Li told reporters on the sidelines of parliament.

"No foreign force has the right or qualification to interfere," Li said. "We Chinese people have the wisdom, resolve, ability and confidence to
unite as one and protect our country's sovereignty and territorial integrity."

Beside the stick, the bill also contained a carrot.

It aimed to encourage economic exchanges and cooperation and realise direct trade and transport links between the two sides to their
mutual benefit, Wang said.

Taiwan has banned non-stop air and shipping links since 1949 due to security fears, but trade, investment and tourism have flourished in
recent years. Taiwan investors have poured up to $100 billion into China.

The bill calls for Beijing and Taipei to negotiate an end to their state of hostility and map out future relations with an eye to eventual peaceful
reunification.

The rivals could also resume fence-mending dialogue, stalled since 1999, on the post-reunification status of the island in the international
community, according to the bill. Beijing has pushed Taipei into diplomatic isolation.