Rivals Taiwan, China Sign Pacts on Closer Relations : Asia: Semiofficial talks in Singapore yield accords on technology, trade and other issues.

China and Taiwan, acting through semiofficial representatives, signed an unprecedented set of accords here today aimed at establishing closer ties between the longtime rivals.

In a joint statement, the two sides pledged cooperation on trade, technology exchanges, copyright protection, anti-crime efforts and repatriation of illegal immigrants. Agreements on setting up a system of regular meetings between the two sides, and on verification of official documents and compensation for lost mail, were also signed.

Ku Chen-fu, Taiwan’s chief delegate, said after the signing ceremony that the talks had “come to a very successful conclusion.”

“This indeed is the opening of a new chapter in the exchanges between the people of both sides of the Taiwan Straits,” Ku said.

Tang Shubei, China’s spokesman and main negotiator, expressed similar sentiments. “Our two organizations’ agreeing to sign these four agreements was a historic moment,” Tang said at a Wednesday news conference.

Top representatives of the two sides celebrated their achievement with toasts over a friendly dinner Wednesday evening, according to Chiu Chin-yi, spokesman and key negotiator for Taiwan’s delegation.

“Generally speaking, the atmosphere was quite nice, friendly, and we drank a few ‘bottoms up’ of rice wine and maotai (a potent Chinese grain liquor),” Chiu said. “The very significant thing is that both sides, after more than 40 years of separation, now sit down and talk business.”

The semiofficial talks here, which began Tuesday, were the highest-level contact between Communist and Nationalist Chinese since the 1949 victory of Communist forces in China’s civil war.

Chiu described the talks as “not of a political nature” but rather concerned with “technical, administrative and civilian matters.”

“But still, it gives a hope that in the future talks things could be easier, because this time set a model,” he said. The signing of documents “gives us a very good chance to test whether the agreements can be faithfully carried out,” he added.

From the 1920s through the 1940s, Nationalists and Communists went through a series of bloody conflicts and tenuous alliances. The Nationalists, who once ruled all China, fled to Taiwan in 1949. Since then, both the Communist government in Beijing and the Nationalists in Taipei have maintained that Taiwan is part of China, but they have argued over which government should legitimately rule the entire nation.

Both sides have said the meeting in Singapore will promote economic ties between Taiwan and the mainland and that this could create more favorable conditions for eventual unification. Taiwan’s opposition Democratic Progressive Party, which favors permanent independence for Taiwan, has expressed alarm that the talks could have the effect of undermining Taiwan’s sovereignty.

A group of Democratic Progressive legislators who flew to Singapore to be present here during the talks staged a brief demonstration this morning outside the building where the signing ceremony was held, shouting “Taiwan is Taiwan!” and “Oppose reunification!”

The main point of contention during the talks was over Taiwan’s desire for firmer legal guarantees concerning investment on the mainland by business people from the island. Such investment, which is estimated to have reached at least $7 billion, is now conducted only indirectly, by way of companies set up outside Taiwan.

Beijing insists that its current legal framework for Taiwanese investment is satisfactory and that Taipei should take the next step by permitting direct investment that is not routed through Hong Kong or other locations. Argument over this issue forced a delay in signing the agreements, which was originally planned for Wednesday.

The two sides ultimately dealt with the issue by making only vague reference to it in the accord signed by Ku and Wang Daohan.

Ku is chairman of the Straits Exchange Foundation, a semiofficial organization set up to provide a channel for negotiations with Beijing. China’s delegation was headed by Wang, chairman of the Assn. for Relations Across the Taiwan Strait. Both men have close personal and political ties with top leaders of their respective governments, but the main work was handled by Chiu and Tang.