Taiwan Leader Defends His Remarks as a Step for Talks

President Lee Teng-hui on Tuesday stood behind his claim that Taiwan and China are two states, calling it a necessary step to prepare the capitalist island for talks on eventual reunification with the Communist mainland.

Lee insisted that he was not championing formal independence for Taiwan, which China says would lead to war. But Beijing was not appeased, reiterating its demand for Taiwan to stop “all activities aimed at splitting the country.”

In his first public remarks since setting off the uproar, Lee said his declaration that China must deal with Taiwan “on a state-to-state basis” was intended to establish an equal political status for the two that could allow real negotiations on an amicable future.

Lee asked for public support, rebuking China’s insistence that Taiwan and China are still one country, despite their political division after a civil war 50 years ago.

“One China is not now,” Lee said. “Only after we have democratic reunification shall there be the possibility of one China.

“The notion that Taiwan is a local government, a rebel province, was the reason why there couldn’t be a fundamental improvement in relations,” Lee said in a televised speech to Rotary Club members. “We will foster dialogue and negotiations with the Chinese Communists on an equal footing.”

Lee’s original statehood claim, made in remarks July 9 to a German radio interviewer, came at a time when Beijing was pressing for talks on reunification.

China’s saber rattling and various unconfirmed media reports of Chinese military maneuvers sent Taiwan’s stock index on a 13% plunge last week. But stocks rebounded and gained 5.7% Tuesday amid expectations that Lee’s speech could help resolve the crisis.

Beijing voiced no such expectations.

Commenting on Lee’s speech, Chinese Foreign Ministry spokeswoman Zhang Qiyue said his statehood claim posed “a serious challenge to the one-China principle” recognized internationally.

In Washington, Secretary of State Madeleine Albright on Tuesday announced that Richard Bush, chairman of the board and managing director of the American Institute in Taiwan, the agency that handles Washington’s unofficial ties with the island, would leave today for talks in Taipei.

Similarly, Assistant Secretary of State Stanley Roth is to head for Beijing for consultations with Chinese officials.