Extracts.

What Will Be the Actual Result of Taiwan Leader's 'Three All-out Efforts'?
On June 5, after his return to Taiwan from his visits to Central and South
America, the leader of the Taiwan authorities declared: "going all out for
diplomatic achievements during my visits abroad, going all out for economic
development after my returning home, and going all out for the election at
year-end". In the face of the happenings over the past one and a half
months, can he tell what he actually wants to achieve in his "three all-out
efforts"? 

So-called "for Diplomatic Achievements When Abroad"
His "actions" during his Central and South American tour should be pointed
out here. He chose the time for his tour abroad shortly after getting hug
quantities of arms the United States sold to Taiwan, this was the second
time he visited the same region within nine months and gained several "major
breakthroughs" in his transit visit to the United States, he intended to
give prominence to his "diplomatic achievements", but actually he is faced
with many awkward situations.
--In his Central and South American tour, the Taiwan leader not only gave
from several million to tens of millions of US dollars as gift to each
country he visited, he even granted two sums of special funds totaling
US$370 million to the Central American region which was to be used for the
"cooperative projects" between Taiwan and the said region as well as for
related funds. This move was denounced by various Taiwan social circles.
Just at the time, there came the news that Macedonia was to "sever
diplomatic relations" with Taiwan, and two to three other countries having
"diplomatic ties" with Taiwan were also wavering. On June 18, the Macedonian
government formally declared normalization of relations with the People's
Republic of China. The Taiwan authorities were forced to announce, several
hours before this, "severing diplomatic ties" with Macedonia which had
received well over US$200 million from Taiwan since 1999, this was mocked as
"a loss of both money and dignity" by news media.
--In name, the Taiwan leader visited five Central American countries having
"diplomatic relations" with Taiwan, in reality, he vigorously played up his
transit visit to New York and Houston as "major diplomatic breakthroughs".
He launched 16 rounds of activities during his only two-day stay in New
York. In the view of the news media, The Taiwan leader tried so hard to
"strengthen himself by depending on foreigners", it is hard for Taiwan to
avoid being reduced to a "cat's-paw of Western anti-China forces". This is
an "extremely great misfortune" for Taiwan. Reports say on June 13, the
American ambassador to the United Nations told Taiwan correspondents:
currently, it is absolutely impossible for Taiwan to achieve its aim of
joining the United Nations. On the following day, Singaporean Prime Minister
Goh Chok Tong said in the United States that the US President George W.
Bush, while meeting him, indicated that he "does not support Taiwan
independence". Around that time, an American poll revealed that about 75
percent of the people oppose US arms sales to Taiwan and "assisting Taiwan
in its defense". 
--The Taiwan leader deliberately declared during his visit abroad that
"Taiwan is an independent sovereign state", Taiwan is different from Hong
Kong and Macao, "the 'one country, two systems' principle doesn't suit
Taiwan ". this statement obviously aims to confuse international public
opinion. However, on the very day when he returned from his tour abroad, the
poll published by Taiwan Wireless Satellite Information station showed 31
percent of the people interviewed favor the "one country, two systems" for
future cross-Strait relations. The opinion poll conducted by Taiwan's United
Daily on June 27 shows that 33 percent of the Taiwan public accept the "one
country, two systems" principle. After Beijing succeeded in its Olympic bid
on July 13, Taiwan's latest poll indicated the proportion of Taiwan public's
acceptance of said principle had jumped to a record 48 percent. According to
a media analysis, the main reason for this is: the comprehensive depression
of the Taiwan economy and the sustained rise in the mainland's economy have
presented a sharp contrast. The number of Taiwan people dissatisfied with
Taiwan's political and economic situation respectively reached 70-80
percent, and the figure is likely to increase. From this it is very clear
how the direction of public feelings is. It is futile for the Taiwan leader
to vilify the "one country, two systems" principle in the international
arena. 

So-called "for economic development"
It seems that he wants to devote special effort to changing Taiwan's
economic gliding tendency. Ironically, on the eve of the Taiwan leader's
tour abroad, Taiwan stock price dropped 5000 points, the business volume
fell time and again to a record low since June 1996. On May 25 and 26,
related Taiwan competent department twice published the "latest economic
growth report", the first report showed the growth rate in the first quarter
to be only 1.06 percent, a new quarterly low ever in the past 26 years; the
second report showed the growth rate fell to around 1 percent from 3.91
percent estimated two months ago. On June 22, the accounting department of
the Administrative Yuan announced the number of unemployment in May exceeded
400,000 people, with the unemployment rate reaching 4.22 percent. It is
estimated that the unemployment rate in the whole year will reach a record
high of 4.1 percent.
In the face of such a difficult situation, the Taiwan leader has adopted the
following "all-out effort" measures: First, ordering banks to relax money;
second, establishing several more economic consulting institutions under his
guidance, particularly holding so-called "economic development conferences";
third, changing the situation in which the opposition parties use their
majority seats in the "Legislative Yuan" to obstruct implementation of his
policy of so-called reviving the economy, in fact, he uses this as an excuse
for him to create momentum for the election at year-end. As regards
"relaxing money", people denounce it as "administrative intervention which
is to no avail". With regard to "the convocation of economic development
conference", public opinion maintains that just like concealing one's
illness and refusing to consult a doctor, the Taiwan authorities hide their
troubles and refuse to take remedial measures, so whatever conference is
held, "it can hardly help development". The various social circles of Taiwan
have pointed out that for the Taiwan authorities to rescue the economy from
the deteriorating crisis, they must begin with the political field,
eradicating "black-gold politics" and abandoning the "no haste, be patient"
policy, so as to promote the reshaping of Taiwan's industries. Along with
the deepening of cross-Strait economic inter-dependence, Taiwan must rely on
the huge economic carrier of the mainland whether it wants to develop
large-scale scientific and technological industries, or to modernize its
traditional industries, or provide rooms for the survival of its small and
medium-sized traditional industries. Given this situation, the fundamental
way out for it is to improve cross-Strait relations, comprehensively review
its economic relations with the mainland and quickly acknowledge the
"one-China principle". The Taiwan leader, however, has so far refused to
acknowledge that he himself is a Chinese, the Taiwan authorities have thus
far clung to the "no haste, be patience" policy and obstructed
implementation of the "three exchanges (exchange of mail, trade and air and
shipping services). With regard to some plans for decontrol, Taiwan has time
and again delayed implementation, that has naturally aroused the increasing
dissatisfaction of the Taiwan people.

So-called "all-out-efforts for election at year-end"
This is the very thing he really wants to do with might and main. Over the
past year, the "all-people government" the Taiwan leader has sedulously
tried to rig up has come to an end after 137 days due to divergence of
views. Later, actually only a "minority government" was formed. In order to
rid Taiwan of its predicament, Lee Teng-hui has put in good words for the
Democratic Progressive Party (DPP), preaching that the Taiwan leader "has
done ever better". In response, the Taiwan leader has doubled his effort to
create momentum, declaring that the elected DPP would become the first
largest party, and political parties would be reorganized, the DPP would
direct the organization of a coalition government. Some DPP members even
stated bluntly their intention to organize a "native party" featuring the
"collaboration between Chen Shuibian and Lee Teng-hui", so that a "native
mainstream poll" has taken shape. On the afternoon of June 16, the Taiwan
leader and Lee Teng-hui together attended the inauguration of "Bei She" with
a strong "Taiwan independence" color. At the meeting, the two men delivered
speeches, echoing to "Taiwan independence" elements' clamor for the
"formulation of a new constitution" .With regard to Lee Teng-hui's open
performance with the DPP, the Kuomintang denounced him as "flaunting the
blue flag to oppose the blue flag" and as a "hidden traitor". Some members
of the Kuomintang proposed expelling Lee Teng-hui from the Kuomintang. It is
thus clear that after his downfall, this "trouble-maker" Lee Teng-hui still
want to bring trouble to the Taiwan people, people of various social circles
in Taiwan hate him bitterly..
People of various social circles in Taiwan have heightened their vigilance
against the plot of the Taiwan authorities to collaborate with Lee Teng-hui
in hoodwinking the people by exerting "all-out efforts for the election at
year-end". News media have pointed out that the collaboration between Chen
Shuibian and Lee Teng-hui aims to deliberately mess up the political arena
and benefit from the election. This is as clear as the saying goes, "Sima
Zhao's trick is obvious to every man in the street".
At a press conference on June 27, Hsu Hsinliang, former DPP chairman, said
bluntly: the integration of Lee Teng-hui with the DPP would mean the "worst
and most unfavorable development" for the future of Taiwan. Taiwan's
economic problem is a problem concerning the two sides of the Taiwan
Straits, if a wrong cross-Strait policy is adopted, improvement of Taiwan's
economy would be impossible. It is evident the Taiwan leader's "three
all-out efforts" mentioned above will lead Taiwan to a more chaotic and
dangerous road. 

****


Taiwan Leader Criticized for Instigating Military Cooperation with Foreign
Countries 
The Liberation Army Daily will publish a byline article Thursday to unveil a
dangerous signal sent by the leader of Taiwan in a recent interview with a
US newspaper. 
According to the article, written by Jin Yinan, the Taiwan leader, in an
interview with Washington Times, expressed the hope that the United States,
Japan, and Taiwan would jointly develop missile defense system to counter
the "missile threat" from the Chinese Mainland.
Taiwan could take part in the theater missile defense (TMD) project of the
United States; and that Taiwan and the United States could conduct joint
military exercises, the Taiwan leader expressed.
What the Taiwan leader said sends a dangerous signal, the article says,
because the central point of his three hopes is to build a U.S.-Taiwan
military alliance. 
He beat around the bush by saying that it would be difficult to achieve a
military alliance but in terms of military exchange and cooperation there is
still much more room for improvement. " Currently, relations are much better
than in the past and they have made significant progress, but they can still
be upgraded," said the Taiwan leader.
In which direction does Taiwan hope the relations "can still be upgraded?"
The article quotes a spokesman for Taiwan's "national defense" thereafter to
explain. The spokesman said that Taiwan always attaches importance to
military exchanges and cooperation with friendly countries. It does not
exclude the possibility of conducting military maneuvers with the United
States. The purchase of weaponry was only the first step in the U.S.-Taiwan
military cooperation.
"The second step would be looking for joint military exercises with the
United States," the article points out.
The Taiwan authorities have made preparations for the second step by
inviting Americans to inspect Taiwan's land configuration, to participate in
the entire process of a military exercise, to help test-fire its US-made
Patriot anti-missile system, and to help build data links for air, marine
and land forces. 
The U.S. Department of Defense also announced recently that it would sell
Taiwan the Joint Tactical Information Distribution Systems (JTIDS) worth 725
million U.S. dollars.
Taiwan media reports described the situation of U.S.-Taiwan military
interaction, as only one step away from a joint military exercise.
What has happened proves that the Taiwan leader has been keen on military
issues instead of economic or diplomatic issues as he has claimed before,
the article says. 
Does he really love Taiwan, questions the article, since he has not reacted
to the economic slump in Taiwan. He is interested in nothing but being proud
of having foreign forces in one's power and speeding up separatism by
rejecting reunification with a sword.
For Taiwan people, the real danger is that this self-claimed " son of
Taiwan" is turning a fertile and beautiful Taiwan into an ideal battlefield
for Americans. 
However, the tide of history is irresistible. The rest of the world has
witnessed a new power the Chinese people showed in Beijing's bid for the
2008 Olympic Games, which is courage and perseverance.
The article says that the Chinese people will not tolerate the Taiwan leader
stepping further on the road of dividing the motherland. The People's
Liberation Army is a great wall of iron and steel which separatism can never
surpass. 
Any attempt to interfere in China's civil affairs by foreign forces will
fail, as will any attempt to separate Taiwan from the Chinese territory.

****

China's Prosperity Poses No Threat to Asia-Pacific: Tang
Chinese Foreign Minister Tang Jiaxuan Wednesday said that a prosperous and
even more open China will be a positive and constructive factor for both
Asia-Pacific and the world at large.
China "will never be a threat," Tang said at the annual session of the
Eighth ASEAN Regional Forum, which opened earlier Wednesday in Hanoi for
discussions on security issues in the region.
For a considerable long time to come, the central task for China is to
concentrate its efforts on developing the economy and improving the quality
of people's life, said the Chinese foreign minister.
"China needs a surrounding environment of good-neighborliness and friendship
and an external world for mutually beneficial cooperation," he added.
China's own stability and development is the biggest contribution to
regional peace and security, Tang said.
Tang stressed that China's policy on Asia-Pacific security is committed to
the maintenance of peace and stability and the promotion of prosperity and
progress in the Asia-Pacific region.
China "advocates a new concept of security with mutual trust, mutual
benefit, equality and coordination at its core," Tang said.
The Chinese side will, as always, work together with other forum
participants to preserve regional peace and stability and promote mutually
beneficial cooperation among countries, said the Chinese foreign minister.

****


Yugoslav Parliament Endorses New Government
Yugoslavia's parliament late on Tuesday endorsed a new federal government
led by Prime Minister Dragisa Pessich, the Tanjug news agency reported.
After hours of debate, a clear majority of deputies in both houses of
parliament -- the Chamber of Republic and the Chamber of Citizens -- voted
in support of the new cabinet to succeed the one which collapsed last month
over the handover of former president Slobodan Milosevic to the U.N.
criminal court in The Hague.
Under a deal between Montenegro's opposition umbrella group " Together with
Yugoslavia" and Yugoslav President Vojislav Kostunica's DOS party alliance
of Serbia, the new cabinet comprises 10 members, with each side holding five
posts. 
Pessich, a member of the Socialist People's Party (SNP) of Montenegro, the
largest force in the "Together with Yugoslavia," told a joint session of the
two houses Tuesday that the priorities of his new government are, with the
full participation and cooperation of Serbia and Montenegro, to revise the
federal constitution lawfully and redefine relations between the two
republics. 
"The new government will open up the country further to the outside world
and solve the disputes and pending issues relating to Yugoslavia's
international status," Pessich said.
"The new government will also carry out all the provisions of the Dayton
Agreement which is of significant importance in regional stability and
peace, and establish cooperation with the U. N. criminal court in The
Hague," he said. 
He noted that the issue of Kosovo must be resolved on the basis of U.N.
Resolution 1244 which respects the sovereignty and integrity of Yugoslavia.
The Yugoslav president named Pessich as prime-minister- designate last week
to form a new government.
Under the Yugoslav constitution, if the president is from Serbia like
Kostunica, the premier should come from Montenegro. Serbia and the smaller
Montenegro are the two republics comprising the Federal Republic of
Yugoslavia. 
Pessich, 47, has served as finance minister in the two previous Yugoslav
governments since 1998.

****

Beijing Court Delivers Sentences in Spy Case
The Beijing First Intermediate People's Court delivered sentences Tuesday at
the first trial of three people convicted of directly or indirectly
providing state secrets and intelligence to Taiwan.
Qin Guangguang, and Gao Zhan, both collected intelligence for spy agencies
in Taiwan, causing a serious threat to China's national security, the court
said. 
The two were each sentenced to ten years in prison, and deprived of their
political rights for two years.
Qu Wei, convicted of providing national secrets and intelligence to Li
Shaomin and Gao Zhan, was sentenced 13 years in jail and deprived of his
political rights for three years, according to the court.

****

Israeli Army Destroys Palestinian Position in Gaza Strip
The Israeli army on Wednesday destroyed a position of the Palestinian
security force in the southern Gaza Strip.
The position in Rafah on border with Egypt was smashed after the Israeli
army exchanged fires with the Palestinian security force, during which one
Palestinian security man and an Israeli soldier were wounded.
Before the fire exchanges, Jewish settlers nearby held protest at the
deterioration of the situation and fired at the Palestinian security force,
leaving a Palestinian injured.
The Palestinian force counterattacked the settlers, a move which sparked the
Israeli army's actions.
Meanwhile, an Israeli special unit captured several members of the
Palestinian mainstream Fatah movement.


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