Mainland Affairs Council

January 1, 2004
In his New Year's Day Address, President Chen Shui-bian reiterates that his pledge of "Four No's Plus One" shows the utmost sincerity in pursuit of cross-Strait peace. As long as China is willing to accept the democratic choice made by the people of Taiwan in the upcoming presidential election, leaders of both sides will have a historic opportunity to demonstrate their wisdom in creating a brand new vision for economic cooperation and political reconciliation across the Strait, thereby making most contribution to the prosperity of the peoples on both sides.

January 7, 2004
In a meeting with the foreign guests attending the Seminar on Taiwan-U.S.-Japan Strategic Security Cooperation, President Chen Shui-bian points out that it is mainland China, not Taiwan that is trying to make unilateral change of the status quo in the Taiwan Strait. The holding of a referendum is aimed at defending Taiwan's status quo from being changed.

January 12, 2004
In a year-end gathering with media reporters covering the Office of the President, President Chen Shui-bian states that as the country's leader, he must cautiously and steadily handle matters that pertain to the country's future. It is hoped that after March 20, especially after May 20, both sides of the Strait could start anew a phase of beneficial interaction. We are fully prepared and we intend to give each other some space, hoping that there will be no sorrows nor nostalgia on both sides of the Strait, but only reconciliation, cooperation, and peace.

January 16, 2004
The MAC releases a statement on the alleged "Taiwanese Espionage Case" pointing out that "we have reasons to suspect that this is the Mainland's intention to influence the development of Taiwan's domestic political situation and to manipulate Taiwan's elections.

January 18, 2004
President Chen Shui-bian attends a TV interview on the state of the country and states that the Mainland's basic strategy on Taiwan consists of the principles of "one China" and "one country, two systems." Whoever is President certainly cannot accept the Mainland's principle of "one China." Therefore, he proposes that both sides deal with the future of "one China" together, put major differences aside, and work on the consensus. President Chen Shui-bian reiterates that the peace referendum is the best guarantee to preserve national dignity and security of sovereignty.

January 27, 2004
President Chen Shui-bian is interviewed on "the President's Financial and Economic Forum," a TV program for the discussion of political opinions, and states that the Government's cross-Strait trade and economic policy adopts the principle of "Firm Position and Pragmatic Progress," hoping that both sides of the Strait put aside political issues and exchange representatives or special envoys to enhance cross-Strait trade and economic development.

January 30, 2004
President Chen Shui-bian is invited to speak at a Lunar New Year Dinner Party for heads of Taiwanese Businessmen's Associations and states that the Government will provide Taiwan businessmen working in the Mainland with more facilitation and protection measures to show its sincerity and confidence in improving cross-Strait relations and more especially to look after Taiwan businessmen's interests. President Chen Shui-bian announces the "Four New Measures," regarding concrete policy recommendations for the interests of the Taiwan businessmen, including the expansion of the applicable scope of the "Mini-Three-Links," the expansion of the Measures for Cross-Strait Freight Facilitation, the relaxation of claims for insurance payments from Taiwan for their medical treatment in the Mainland, and the increase of government subsidies to Taiwan schools in the Mainland.

January 31, 2004
Dr. Koo Chen-fu, Chairman of the Straits Exchange Foundation (SEF), states during the Lunar New Year gathering and forum for Taiwan businessmen that the present cross-Strait relations still lack mutual confidence, thus increase all forms of suspicions and misunderstandings. There is no opportunity to solve these differences. On the one hand, the Mainland has unilaterally cut off the communications channel between the SEF and the Association for Relations Across the Taiwan Strait; on the other hand, it is eager to set up other communications channel.

February 3, 2004
President Chen Shui-bian convenes a press conference for local and foreign reporters to explain that the interaction framework for cross-Strait peace and stability contains the "One Principle and the Four Major Issue Areas." The "One Principle" is "Establishing the Principle of Peace." The "Four Major Issue Areas" are, namely, establishment of negotiation mechanism, exchanges based on equality and reciprocity, establishment of political relationship, and prevention of military conflicts. President Chen Shui-bian stresses that after March 20, he will invite Mainland China to appoint its special envoy to meet and to work with his special envoy towards the initiation of cross-Strait negotiation, in light of the "One Principle and the Four Major Issue Areas."

February 3, 2004
A Letter signed by President Chen Shui-bian regarding the March 20 referendum is sent to the EY, together with a Justification Statement for the referendum entitled "Writing History with Democracy and Defending Taiwan with Referendum".

February 4, 2004
Two issues proposed by President Chen Shui-bian for the March 20 Peace Referendum, which are "Strengthening National Defense" and "Peace Negotiations," are approved in an Executive Yuan session and delivered to the Central Election Commission for the commencement of administrative procedures.

February 6, 2004
In an exclusive interview with the LA Times, President Chen Shui-bian gurantees that the Taiwan issue will not become a burden on the US. In the next four years, Taiwan will certainly maintain the status quo, and he will continue to make efforts to prevent the status quo from being unilaterally changed.

February 9, 2004
In an exclusive interview with Time Magazine, President Chen Shui-bian points out that there is no way we can accept the "One Country, Two Systems," and therefore it is impossible for us to accept the "one China principle." He also stresses the significance of the March 20th referendum, which is, of course, to maintain Taiwan's status quo and to prevent this status quo from being unilaterally changed. Therefore, Taiwan will not change the status quo. Neither will he change the status quo in his next four-year term.

February 9, 2004
The MAC passes the draft of the "Regulations for Managing the Interview of Mainland Applicants to Enter into the Taiwan Area" to regulate the interview requirements of the people from the Mainland applying to enter into Taiwan for the purposes of family reunion, temporary stay, or permanent residence. The MAC also passes the draft of the "Permit Regulations for the Entry of People from the Mainland Area into the Taiwan Area," which will allow the parents of the Mainland spouses who have obtained permanent residency in Taiwan to come to Taiwan for a visit, and allow them to visit patients when the Mainland spouses are seriously ill or injured or in a state of life-threatening danger. These four regulations will be submitted by the Ministry of the Interior to the Executive Yuan for approval, and will be effective on March 1, 2004, in coordination with the effective date designated by the EY of the amendment of the "Act Governing Relations Between the Peoples of the Taiwan Area and the Mainland Area".

February 11, 2004
With regard to the emotional criticism of the Mainland's Taiwan Affairs Office about Taiwan's proposal for a peace and stability framework agreement, the Mainland Affairs Council expresses "profound regrets" and points out that there have always been differences in the political position of each side of the Strait, but these should not become obstacles hindering them from holding a dialogue to achieve a consensus of peaceful coexistence together.

February 13, 2004
In an exclusive interview with Japan's Kyodo News Agency, President Chen Shui-bian points out that he has made active planning for the promotion and establishment of a framework for cross-Strait peace and stability. He will form a team for its implementation and will announce the list of the team members right after March 20. By May 20, he shall have nominated a candidate to serve as Taiwan's representative to the Mainland for the talks on the "Four Major Issue Areas" under the "One Principle of Peace."

February 17, 2004
MAC Chairperson Tsai Ing-wen points out in a special address that the Taiwanese people's support of the referendum and the results on March 20 will be conducive to helping Taiwan make a breakthrough in the present state of disequilibrium due to Taiwan's being repressed, downgraded, and marginalized by the Mainland in the international arena, as well as enable Taiwan's voice to be effectively heard and to attract more support from the international community.

February 19, 2004
The MAC passes the draft of the "Permit Regulations for the Entry of Taiwanese People into the Mainland Area," partial amendments of the "Trial Implementation Regulations for the Transportation Links Between Kinmen and Matsu and the Mainland Area," draft amendment of the "Application Procedures and the Review Criteria for the Restoration of the Taiwanese Identities of People Residing in the Mainland Area and for Their Return to Taiwan for Permanent Residence," and the draft amendment of the "Review Principles for Investments or Technical Cooperations in the Mainland Area." These will be submitted by the Ministry of the Interior to the Executive Yuan for approval and will be effective on March 1, 2004, in accordance with the effective date designated by the EY of the amendment of the "Act Governing Relations Between the Peoples of the Taiwan Area and the Mainland Area".

February 20, 2004
In an exclusive interview with the Taipei Bureau chief of Japan's TV Asahi, President Chen Shui-bian points out that the referendum on a new Constitution in 2006 is not part of the Taiwan independence timetable, but of the constitutional reform. Since Taiwan has been an independent sovereign state, there is no need to declare its independence. President Chen also reiterates that in the next four years, his utmost hope is to be able to shake hands and reconcile with the leader of the Mainland in a third country or a third area.

February 25, 2004
The MAC expresses strong protest against the improper criticism made by the Mainland's Taiwan Affairs Office about Taiwan's Peace Referendum to be held on March 20th and their distortion of President Chen Shui-bian's efforts in promoting cross-Strait peaceful and stable interaction. The MAC also stresses its hope that the Mainland will positively view the process of the deepening of democracy in Taiwan, respect the basic human rights and the willingness of the Taiwanese people, and refrain from treating the referendum with a parochial perception of "reunification vs. independence."

February 26, 2004
Addressing the American Chamber of Commerce during its Hsieh Nien Fan Annual Banquet, President Chen Shui-bian states that after the March 20 referendum and his re-election, the two sides must be able to work actively and pragmatically through dialogue and negotiations to pursue such issues as the establishment of a framework for cross-Strait interaction and stability, the protection of investment, the "Three-Links" and direct transportation. At the same time, he also reiterates that the March 20 Peace Referendum has nothing to do with changing neither the status quo nor the issue of "independence vs. unification." The significance of the March 20th Peace Referendum is to demonstrate the firm will and solidarity of the people of Taiwan in their own self-defense and the pursuit of cross-Strait peace.

March 1, 2004
In coordination with the amendment of the "Act Governing Relations Between Peoples of the Taiwan Area and the Mainland Area," more than fifty by laws and supporting secondary laws are officially implemented, which includes the movement of personnel across the Strait and the overall immigration system, the related supporting measures regarding Mainland spouses and their implementation, the implementation of the consensus on trade and economic exchanges at the Economic Development Advisory Conference, the general regulations on Taiwanese people assuming official positions or membership in the Mainland area, and cooperation between schools of all levels across the Stait.

March 3, 2004
The Executive Yuan approves the "Special Project on the !￥Mini-Three-Links' Implemented via Kinmen and Matsu for the March 20 Presidential Election" agreeing to follow the model implemented during this year's Lunar New Year's Holidays to enable Taiwan businessmen in the Mainland to retrun to Taiwan via the "Mini-Three-Links" route to vote in the presidential election. This is to provide Taiwan businessmen in the Mainland with an additional choice of transportation routes for their return to vote in the election.

March 14, 2004
The Mainland Affairs Council releases a statement in response to the press conference convened by Mainland Premier Wen Jiabao, urging the Mainland to face up to the political reality on both sides of the Strait, to change their rigid way of thinking as soon as possible, and to attach importance to Taiwan's inevitable development of democracy, in order to contribute to cross-Strait relations.

March 18, 2004
MAC Chairperson Tsai Ing-wen states at the Press Conference for International Reporters that it is hoped that the Mainland authorities will face up to the determination of the Taiwanese people and the Government of the Republic of China to pursue regional peace and stability, and grasp the opportunity as soon as possible to improve cross-Strait relations together.

March 20, 2004
In his message upon winning the 2004 presidential election, President Chen Shui-bian urges the Beijing authorities to treat the results of Taiwan's presidential elections and referendum in a positive light, and accept the Taiwanese people's choice of democracy. The leaders of both sides of the Strait should maintain mutual understanding, sincerity, and goodwill, and employ their wisdom in creating a turning point for cross-Strait peace and stability, and mutual cooperation and reciprocity.

March 20, 2004
The Mainland Affairs Council releases a press statement after the presidential election, pointing out that the voting and the counting of ballots for Taiwan's March 20 presidential election have been successfully completed. We will now abide by the commitments made by President Chen Shui-bian during the campaign period, and make the active promotion of a peace and stability framework for cross-Strait interaction the priority objective. We urge the Mainland to respect and pragmatically honor the status quo across the Strait and resume dialogue and negotiations with us as soon as possible.

March 26, 2004
In response to the unreasonable criticisms and statements made by the Mainland's Taiwan Affairs Office on Taiwan's presidential election, the Mainland Affairs Council releases a press statement expressing utmost dissatisfaction and reiterates that the Mainland's unreasonable criticism over Taiwan's domestic affairs is a brutal intervention of its internal affairs. The Mainland will be cast aside by the Taiwanese people if it tries to make excuses to trigger cross-Strait conflict.

March 29, 2004
In an exclusive interview with the Washington Post, President Chen Shui-bian points out that we will never engage in an arms race with the other side of the Strait, since what we want is to avoid war and achieve permanent peace across the Taiwan Strait. One of our chief missions and responsibilities in the coming four years would be to establish a peace and stability framework for cross-Strait interactions and to maintain stability across the Strait.

March 31, 2004
In an interview with the BBC, President Chen Shui-bian states that it is the top priority for his policy implementation to improve the cross-Strait relations and to stabilize the cross-Strait relations in order to have a normalization across the Strait for the next four years.

April 1, 2004
The Asian Wall Street Journal reports that President Chen Shui-bian clearly pointed out in an exclusive interview that he has no intention in his second term to change Taiwan's status quo in its relationship with the Mainland. His "most important goal" is to foster "peaceful cross-Strait relations and stability and security of the Asia-Pacific region." At the same time, the US is urged to play a more active and constructive role in facilitating cross-Strait dialogue.

April 1, 2004
In an exclusive interview with Japan's Yomiuri Shimbun, President Chen Shui-bian points out that the "one country on each side" has become the absolute majority's view in Taiwan and has become the people's will. It is difficult for the Taiwanese people to accept the "one China" or the "one country, two systems." He also reiterates his proposition to conduct a referendum in 2006 and implement a new constitution in 2008.

April 5, 2004
President Chen Shui-bian points out during a meeting with the delegation of the US National Committee on American Foreign Policy (NCAFP) that his proposal on the creation of an interaction framework for cross-Strait peace and stability is to hope that the "one peace" principle could replace the "one China" principle so that the representatives of both sides could sit down to negotiate and bring about the normalization of cross-Strait relations.

April 6, 2004
MAC Chairperson Tsai Ing-wen points out during a meeting with the delegation of the US National Committee on American Foreign Policy (NCAFP) that the priority task of the ROC Government after the presidential elections is to stabilize cross-Strait relations and continue to promote policies that are conducive to cross-Strait trade and economy.

April 14, 2004
The MAC expresses utmost regret over the repeated malicious criticism and defamation of President Chen Shui-bian by the Mainland's Taiwan Affairs Office. The Mainland adds political and emotional flavor to every issue and this is the main reason for the inability of cross-Strait relations to maintain stable development. It is hoped that the Mainland will remove its preset political obstacles as soon as possible and establish an interaction framework of cross-Strait peace and stability.

April 20, 2004
In a meeting with Professor Ross Terrill of the Harvard University's Fairbank Center, President Chen Shui-bian emphasizes that writing a new constitution for the Republic of China is an undertaking in line with democratic processes, but by no means represents a timetable for Taiwan independence. He says Beijing's accusation that a new constitution is a move toward independence is immoral and irresponsible, and that the constitutional reengineering will not be postponed because of Beijing's opposition.

April 27, 2004
President Chen Shui-bian addresses the Nordic Conference on Taiwan via teleconference and urges the Mainland hoping that both sides of the Strait will resume dialogue as soon as possible without any precondition set forth by either side.

May 6, 2004
President Chen Shui-bian convenes the first meeting of the Cross-Strait Interchange Framework Team. The team will be transformed into a Committee for Cross-Strait Peace and Development. If everything goes smoothly, the President will personally preside over the Committee and consolidate the consensus of the ruling and opposition parties as well as the entire nation. The "Guidelines for Cross-Strait Peace and Development" will be mapped out to serve as the criterion for the promotion of peaceful and stable cross-Strait relations.

May 7, 2004
The MAC promulgates the "Measures for Cross-Strait Sea Freight Facilitation", stipulating the addition of the ports of Taichung and Keelung, in addition to Kaohsiung Port, as ports servicing the "Offshore Trans-Shipment Center." Vessels registered as a flag of convenience and foreign-registered vessels shall also be allowed to transport international cargo, aside from cross-Strait transhipment cargo, to promote cross-Strait freight facilitation.

May 7, 2004
The MAC announces the results of a public survey on the "general public's views on present cross-Strait relations", which shows that 80% of the people in Taiwan are opposed to the Mainland's advocating the "One Country, Two Systems" formula in developing Cross-Strait relations. On the issue of unification or independence, 84% of the public advocates maintaining the status quo defined in a broad sense.

May 12, 2004
The MAC issues a press release in response to the statement made at a press briefing of the Mainland's Taiwan Affairs Office, urging Beijing authorities to face squarely a "Peace and Stability Framework for Cross-Strait Interactions" and the "Measures for Cross-Strait Sea Freight Facilitation" being promoted by Taiwan, and to refrain from obstructing Taiwan's participation in the World Health Organization.

May 20, 2004
Chen Shui-bian and Annette Lu are officially inaugurated as the eleventh-term president and vice president of the Republic of China, respectively, with the President immediately making his inaugural address, "Paving the Way for a Sustainable Taiwan." Regarding Cross-Strait relations, the President emphasizes goodwill, peace, and development, and reiterates that the principles and his promise made during his inaugural address on May 20 in 2000 have not changed over the past four years, nor will they change in the next four years.

May 21, 2004
In a press briefing, MAC Chairperson Jaushieh Joseph Wu points out that peace and development in cross-Strait relations are the joint responsibility of both sides of the Strait, and are not unilateral demands. Both sides should work more pragmatically and flexibly. He hopes that the Mainland will make a goodwill and positive response toward President Chen Shui-bian's statement in his inaugural address, and carry out its internal proposal and work on the so-called "China's peaceful rise."

May 23, 2004
MAC Chairperson Jaushieh Joseph Wu delivers a congratulatory message on behalf of President Chen Shui-bian at a workshop, "Peace forum: the prospects of Taiwan-Sino-US relations after the presidential elections." The message expresses that "uniting Taiwan, stabilizing cross-Strait relations, maintaining social order, and achieving economic prosperity" will be the President's administrative goals in the next four years and a "peace and stability framework for cross-Strait interactions" will be actively promoted to enable the Taiwanese people to enjoy democracy and progress.

May 24, 2004
The MAC strongly regrets the erroneous perception and position of the Mainland's Taiwan Affairs Office, which reiterated its "May 17 Statement," and emphasizes that "peace and development" are the joint responsibility of both sides of the Strait. The Mainland is urged not to set up man-made obstacles, to pragmatically create new prospects for future cross-Strait relations.

May 27, 2004
President Chen Shui-bian receives the Co-chairman of the Taiwan Caucus in the U.S. House of Representatives Steve Chabot and points out that his May 20 inaugural address should be beneficial to the cross-Strait reopening of the door to negotiations. Both sides should take advantage of this opportunity and not be affected by the hostility or the deliberate distortion of the other side of the Strait.

May 27, 2004
MAC Chairperson Jaushieh Joseph Wu states that an invitation will be extended again to the Mainland's ARATS Chairman Wang Daohan to come to Taiwan to visit SEF Chairman Dr. Koo Chen-fu. The Government will coordinate in arranging for the officials that will join in the meeting, the issues to be discussed in the meeting, and the venue of the meeting.

May 29, 2004
In an address at a session with the new Cabinet ministers, President Chen Shui-bian states that cross-Strait relations are not the responsibility of a single ministry or a council, but is the responsibility of the entire Government.

May 29, 2004
Premier Yu Shyi-kun emphasizes that both sides of the Strait should conduct exchanges, engage in a dialogue, and put aside disputes to stabilize cross-Strait relations. Cross-Strait exchanges should be progressed step by step, and the Government should adopt the three-stage measures, including the transmittal of goodwill intentions, the expansion of the scope of exchanges, and the build-up of consensus between the ruling and opposition parties.

June 1, 2004
Premier Yu Shyi-kun says at the Legislative Yuan that the Mainland's pinpointing of Chi Mei Electronics Corporation Chairman Hsu Wen-lung is a strong statement saying that it does not welcome and support pro-green and pro-independence Taiwanese businessmen going to the Mainland. This is an opportunity to make Taiwanese businessmen understand the importance of dispersing their investment risks. The Government has actively planned its "turn-around policy" with hopes of forging closer cooperations with countries in the Indo-Chinese Peninsula in the future.

June 1, 2004
Premier Yu Shyi-kun emphasizes during his report on the Guiding Principles for the Government's Policy that the Government will continue to relax and expand cross-Strait trade and economic exchanges, to prioritize the implementation of the "Measures for Cross-Strait Freight Facilitation", to prevent Taiwan's economy from overly tilting toward the Mainland, and to maintain the principality and the initiative of Taiwan's economic development.

June 1, 2004
With regard to the Mainland's pinpointing of Chi Mei Electronics Corporation Chairman Hsu Wen-lung and other Taiwanese businessmen and its strong message expressing that it does not welcome pro-green and pro-independence Taiwanese businessmen going to the Mainland, MAC Chairman Jaushieh Joseph Wu urges the Mainland to provide lawful guarantee to all the commercial activities of Taiwanese businessmen in the Mainland, and that it should not make unreasonable political interferences. It is hoped that the Mainland's words and actions would be consistent, and that there would be no more such cases.

June 8, 2004
After his attendance at the official inauguration ceremony of the Taiwanese Businessmen's website at tbm.cna.hk of the Central News Agency, MAC Chairperson Jaushieh Joseph Wu states during a press interview that the MAC encourages cross-Strait media exchanges. At present, it has been planned to allow reporters of the Mainland's China News Services to station in Taiwan to cover news events. This will be publicly announced as soon as the planning procedures have been completed. With regard to the measures temporarily postponing the arrival of the reporter from the People's Daily to Taiwan, this is a clear message from the MAC informing the Mainland's officials and media that there should be no more cases pinpointing the so-called "pro-green Taiwanese businessmen". Taiwan does not welcome such harassment.

June 11, 2004
MAC Chairperson Jaushieh Joseph Wu states that it has always been the policy of the Government to promote the "Three Links." However, the Mainland has set up political obstacles which could not be overcome by the Taiwan side. The leaders of the other side of the Strait have often been saying that cross-Strait trade and economic exchanges should not be affected by political interventions. We hope that the other side of the Strait could refer back to Qian Qichen's statement more than one year ago, which was that the "one China" need not be brought up in the negotiations of the "Three-Links," so as to allow both sides of the Strait to commence non-political negotiations.

June 16, 2004
Presiding over the 80th founding anniversary of the Military Academy, President Chen Shui-bian delivers his address stating that in facing the growing threats of the Mainland, only the determination to transcend political parties and personal interests will strengthen Taiwan's self-defense capabilities; only the establishment of our capability for an "effective counteraction" will Taiwan's military forces be able to effectively deter, the possible military adventure that could be created by the Mainland.

June 24, 2004
Delivering an address at the Dragon Boat Festival gathering of Taiwanese businessmen, MAC Chairperson Jaushieh Joseph Wu states that there are two main directions in the present cross-Strait policy. First is the promotion of cross-Strait exchanges and negotiations. Second is the promotion of the establishment of a framework of interaction for cross-Strait peace and stability. He reiterates that since the direct cross-Strait transportation involves too many items related to government authority, the key to its implementation lies on cross-Strait negotiations. It is not excluded to open up flexible channels for negotiations allowing civilian organizations other than the existing Straits Exchange Foundation and the Association for Relations Across the Taiwan Strait to participate in negotiations.

June 26, 2004
Lecturing on "Peace and Development for Cross-Strait Relations" at the invitation of the Ketagalan Institute, MAC Chairperson Jaushieh Joseph Wu points out that the recent modernization of the Mainland's military forces has been rapid. Under this military pressure, Taiwan should beef up its defense capability, promote regional security in East Asia, seek international support, and promote a mechanism of military mutual trust across the Strait, so as to avoid accidental conflicts and minimize the possible effects of military unbalance between both sides of the Strait.

June 30, 2004
MAC Spokesperson Chiu Tai-san states that with regard to the more concrete explanation and position of the Mainland's Taiwan Affairs Office on the promotion of the "Three-Links" across the Strait, the Taiwan side considers it contains a certain degree of goodwill. Under the circumstance that there would be no pre-conditions set, Taiwan is willing to commence negotiations with the Mainland side as early as possible on any issue including the "Three-Links."

July 8, 2004
In a lecture to the graduating students of the five military schools on the theme, "Peace and Development: Creating a New Win-win Situation Across the Strait," MAC Chairperson Jaushieh Joseph Wu points out that the objectives of the Government's cross-Strait policy are peace and development, and the preservation of cross-Strait peace and stability. The best solution to cross-Strait differences is freedom of choice. With the consent of the Taiwanese people, the possibility of establishing any form of cross-Strait relationship is not excluded.

July 12, 2004
On the use of Mainland-issued coins and notes (known as Renminbi) in Taiwanese commercial establishments, MAC Spokesperson Chiu Tai-san states that it is being considered to allow trial implementation at certain points, mainly the international airports and sea ports. However, this has to be finalized through inter-ministerial negotiations. Moreover, accompanying measures that go with the actual implementation should be comprehensively assessed by the Central Bank.

July 12, 2004
During a visit to the Chinese Consolidated Benevolent Association of New York, MAC Chairperson Jaushieh Joseph Wu states that the Government has tried its best to transmit its goodwill intentions after May 20. The present atmosphere of cross-Strait relations has eased up, and it is hoped that both sides could establish a "peace and stability framework for cross-Strait interactions", set up the channels for dialogue, and resume negotiations.

July 13, 2004
During his visit to New York, MAC Chairperson Jaushieh Joseph Wu states that the Government is actively seeking to conduct a dialogue with Beijing and trying to create a space which is more vague and which is acceptable to both sides, to resume cross-Strait dialogue. He also reiterates that there should be no pre-conditions on the resumption of talks.

July 20, 2004
In an exclusive interview with the Radio Taiwan International, MAC Chairperson Jaushieh Joseph Wu states that the Mainland should face up to the cross-Strait status quo. If the Beijing authorities do not want Taiwan and the Mainland to go on separate ways, they should resume negotiations on substantial issues with Taiwan as soon as possible. Taiwan's stance on cross-Strait negotiations is "there should be no pre-set conditions; the scope of issues to be discussed is not restricted." Taiwan has proposed more than ten substantial issues for discussion, including currency settlement, investment protection agreement, supervision of financial entities, protection of intellectual property rights, and cross-Strait cargo facilitation, hoping that this would become the foundation for cross-Strait cooperation that will enable them to achieve their ultimate goal of cross-Strait peace.

July 23, 2004
MAC Vice Chairman Chiu Tai-san states that allowing the companies of Taiwanese businessmen overseas to return to Taiwan to go public involves the question of fairness regarding the businesses run by the companies going public. This matter needs to be carefully handled. In the future, those Taiwanese businessmen "rooted" in Taiwan will still be the main targets of this relaxation measure.

July 23, 2004
Regarding the seventeen Mainland tourists who were collectively missing in Taiwan, Mainland officials are putting the responsibility on Taiwan. MAC Vice Chairman Chiu Tai-san urges the Mainland authorities to restrain the officials concerned from issuing irresponsible and ignorant statements. Otherwise, they would not only give rise to disgust among the Taiwan people, but would also affect the positive develoment of cross-Strait relations.

July 26, 2004
The MAC announces that two reporters of a fifth Mainland news agency, the China News Services, will be allowed to be stationed in Taiwan to cover news events within a two-month trial period. After trial period, an assessment will be made to decide whether or not to formally allow the said news agency to station reporters in Taiwan.

July 28, 2004
On receiving Alain Madelin, a French deputy in the French National Assembly, President Chen Shui-bian states that the European Union's successful experience in integrating the common interests of the people of Europe is worth emulating and reflecting on, which can especially serve as a reference for Taiwan in handling cross-Strait affairs.

July 29, 2004
During a speech at the Zuoying naval base in Kaohsiung, President Chen Shui-bian reiterates that only by being prepared for war shall we be able to prevent and stop war. He urges the leaders of the other side of the Strait to face up to the concept of "peace and development" proposed in his May 20 inaugural address, and reiterates that only through mutual respect and dialogue will the foundation of a long period of stability be established for the peoples on both sides of the Strait and their future generations.

July 29, 2004
During a tea session with the media at the National Museum of Taiwan Literature, President Chen Shui-bian points out that regarding the Mainland's intention to formulate a so-called "Unification Law" in an attempt to draw up Taiwan as a special administrative region of the People's Republic of China, the Taiwan people cannot afford to have no vigilance and they should be able to realize the importance and value of national security. It is hoped that everybody will face up to this serious problem together.

July 30, 2004
Delivering an address at the joint opening ceremony of the "Fourth Class of the National Development Program" and the "Fourth Class of the Female Leadership Development Program", President Chen Shui-bian states that the consistent ideals, principles, and promises previously proposed for cross-Strait policies will not change in the next four years. With the consent of the 23 million Taiwanese people, the possibility of developing any form of relationship with the People's Republic of China is not excluded.

July 30, 2004
In response to the proposal by the Mainland's Taiwan Affairs Office of a concept of the cross-Strait "Three-Links" patterned after the model of Taiwan-Hong Kong exchanges, MAC Vice Chairman Chiu Tai-san states that this is "one of several possible choices." The Government maintains a flexible and open stance on the issues related to the "Three-Links." However, the matters that involve government authority need to obtain the approval of the Legislative Yuan. He also reiterates that as long as the Mainland authorities uphold their previous proposal that "the 'Three-Links' are an economic affair, and need not involve any political principle or significance," as a basis of understanding the Taiwan Government has been prepared to conduct negotiations with the other side of the Strait on important matters involving the "Three-Links."

August 3, 2004
During discussions with senior officials of the Changhua County Government, MAC Chairperson Jaushieh Joseph Wu publicly urges the Mainland to resume negotiations on cross-Strait affairs as soon as possible. Moreover, Chairperson Wu also states that the recent military exercises held on both sides of the Strait are routine exercises, and based on assessment these exercises have not heightened military antagonism between both sides.

August 7, 2004
MAC Chairperson Jaushieh Joseph Wu states at the "Consensus Camp of the Counselling Services Mission for Taiwanese Businessmen" that notwithstanding the tense cross-Strait relations, the Government will continue to transmit its goodwill to the Mainland to enable both sides to sit down to engage in substantial negotiations as soon as possible, and to create a set of standards in the middle-term phase of bilateral relations to restrain each other's actions and mode of interaction, thus avoiding conflicts caused by misunderstandings and misjudgments, and, finally, achieving the goal of cross-Strait peaceful co-existence.

August 9, 2004
In an exclusive interview on the radio program, "Super Taiwanese Citizen," MAC Chairperson Jaushieh Joseph Wu points out that the Government earnestly hopes that cross-Strait relations will be developed peacefully and stably. More cultural and educational exchanges should be held if it is hoped that the Mainland will understand Taiwan and mutual understanding will be furthered.

August 12, 2004
Attending the first Plenum of the Second Chinese International Economic Cooperation Association, President Chen Shui-bian states that to cope with the currently intense international competition and changes, and the ever-changing cross-Strait situation, the principal axis of the chief mission of the present administration is "to unite Taiwan, to stabilize both sides of the Strait, to ensure the stability of the community, and to bring about economic prosperity."

August 13, 2004
During his stopovers in Los Angeles, Executive Yuan Premier Yu Shyi-Kun attends a luncheon with the overseas Taiwanese community and urges the overseas community to support the Government and the arms purchase, saying that both sides of the Strait should engage in exchanges and dialogue, establish a mechanism of mutual military trust, and prevent war.

August 17, 2004
Receiving a group of representatives from the Council for Industrial and Commercial Development of the Republic of China, President Chen Shui-bian states that the Government is now actively working on the establishment of a Committee for Cross-Strait Peace and Development with hope of drafting the Guidelines for Cross-Strait Peace and Development to normalize relations between Taiwan and mainland China as soon as possible. At the same time, he also says that as long as the cross-Strait "Three Links" are treated as cross-Strait routes, the "Three Links" can be implemented at any time.

August 28, 2004
In coordination with the budget review for 2005, the MAC submits its report on "the Present Situation and Future Development of Cross-Strait Relations" to the Legislative Yuan, pointing out that in the future, the peaceful resolution of cross-Strait conflicts will be the main trend, and that economic development will be the joint objective of both sides of the Strait. It is hoped that relative stability of cross-Strait relations will be maintained continually.

August 28, 2004
Attending the conference on "the Challenges and Prospects of Democratization in Taiwan, Hong Kong and the Mainland" jointly hosted by the Friends of Hong Kong and Macau Association, Foundation on International and Cross-Strait Studies, and the Taiwan Foundation for Democracy, President Chen Shui-bian delivers an address, "Looking Forward to Democracy Becoming a Common Value in Taiwan, Hong Kong and the Mainland," saying that the most important item on the agenda of Taiwan, Hong Kong and the Mainland in the 21st century is not the timetable for unification, but the timetable for democracy. The improvement in democratization and the democratic system will be the cornerstone of future cooperation, dialogue, and stability among Taiwan, Hong Kong and the Mainland. It is hoped that based on the spirit and principle of democracy, the Mainland and Taiwan would resume benign interaction and dialogue, and seek the possibility of cross-Strait cooperation and mutual prosperity.

August 30, 2004
The MAC Council Meeting passes the amendment of certain portions of the "Operational Regulations Governing the Establishement of Offshore Trans-Shipment center," including the following main points: the scope of operations of the Offshore Trans-shipment Center will be expanded from trans-shipment operations into conveying import and export cargo to and from the Mainland and the third areas; foreign vessels that sail directly between the Offshore Trans-shipment Center and sea ports in the Mainland Area and between offshore trans-shipment centers can do so only after designation; and carriers will be provided with information on the volume of operations for their reference and examination.

August 31, 2004
Attending a dinner hosted by the overseas Chinese community in Hawaii, President Chen Shui-bian says that the peoples on both sides of the Taiwan Strait belong to the same culture and the same ethnic origin; there is no reason for them to continue being hostile to each other. The ultimate objective is the hope to lead the Taiwanese people to pursue cross-Strait peace and world peace.

September 2, 2004
President Chen Shui-bian states in his electronic news webpage, President A-bian's Electronic Paper, that it is indeed necessary that a democratic country maintain its basic defense capabilities. We must strengthen our sense of crisis, especially when facing evident and unceasing military threats coming from a non-democratic country. The freedom, democracy, and the assurance of human rights enjoyed by people in Taiwan are the basis of a peaceful and safe life for everybody, as well as an asset in global competition. It is hoped that we will join efforts in building permanent peace across the Strait, based on our determination and patience in pursuing democracy.

September 2, 2004
In a televised address to mark September 3rd Armed Forces Day, President Chen Shui-bian reiterates that it is a historical fact, as well as a description of the present situation, that the Republic of China is an independent and sovereign country. It is the Government's objective to pursue "goodwill, active cooperation, and permanent peace" across the Strait. The Government will not sacrifice the country's sovereignty, security, and dignity in exchange for the improvement of cross-Strait relations.

September 15, 2004
In his address for the Video Conference with the New York Press Corps, President Chen Shui-bian reiterates that should the United Nations accept Taiwan, it would certainly provide a most effective international monitoring mechanism for the development of a framework for peace and stability between the two sides of the Strait. Indeed, it would be able to exercise decisive influence on peace in the Taiwan Strait and the security of the Asia-Pacific region. He also expresses his wish that, through the arrangements of the United Nations Correspondents Association, he can engage in a public debate on the issue of Taiwan's participation in the United Nations with Chinese leader Hu Jintao.

September 24, 2004
The Mainland Affairs Council issues a press release stating that it will proceed with its policy to allow reporters of China News Service to be stationed in Taiwan to cover news on a trial basis starting from September 27.

September 27, 2004
MAC Vice Chaiman Chiu Tai-san states that in next year's cross-Strait chartered flights during the Chinese Lunar New Year Holidays, Taiwan will not exclude the possibility of implementing "two-way flights." However, this should be negotiated between both sides of the Strait. At the same time, there should not be any political preconditions for the negotiations.

September 30, 2004
In receiving the visiting delegation of the "Atlantic Council of the United States," MAC Chairperson Jaushieh Joseph Wu states that the Government has taken a pragmatic and open stance towards engaging in peaceful exchanges with the other side of the Strait based on the interactive framework for peace and stability before both sides of the Strait could achieve a final agreement. In the future, the Republic of China and the People's Republic of China - or Taiwan and China - can seek to establish political relations in any form whatsoever. We would not exclude any possibility, so long as there is the consent of the 23 million people of Taiwan.

October 3, 2004
In an address at the "2004 Mid-Autumn Festival Gathering of the Taiwanese Businessmen's Associations," President Chen Shui-bian states that the Government will maintain its goodwill and create an environment conducive to cross-Strait interaction as it continues to promote cross-Strait exchanges in journalism, communication, education, culture, as well as the "Three-Links," on the basis of the existing foundations, to resume cross-Strait dialogue and communication channels, establish a foundation for mutual confidence, and pursue peace and stability across the Taiwan Strait.

October 4, 2004
Executive Yuan Premier Yu Shyi-kun states at the "2004 Mid-Autumn Festival Gathering of the Taiwanese Businessmen's Associations" that the Government will continue to expand and promote cross-Strait trade and economic exchanges that are mutually beneficial and reciprocal, including the relaxation to allow Mainland businessmen to come to Taiwan, to fully implement the policy to allow Mainland people to come to Taiwan for sightseeing, to allow more Mainland products to be imported into Taiwan, to engage in negotiations on the cross-Strait "direct transportation links," and to establish normalized cross-Strait trade and economic relations. He also instructs to the MAC to negotiate with Beijing regarding the arrangement of related matters such as the chartered flights for Taiwanese businessmen during the Chinese Lunar New Year Holidays and the chartered flights for cargo, and be more active in proposing concrete and feasible programs.

October 4, 2004
In an address at the "2004 Mid-Autumn Festival Gathering of Taiwanese Businessmen's Associations," MAC Chairperson Jaushieh Joseph Wu states that to carry out the policy on the chartered flights during the Chinese Lunar New Year Holidays, we can be flexible in our method of negotiations with the Mainland side, and are willing to send an appropriate representative acceptable to both sides to the Mainland to engage in communicating with the authorities concerned, to listen to their views and exchange opinions, to pave the way for further mutual negotiations on the preparations for the chartered flights during the Chinese Lunar New Year Holidays.

October 7, 2004
MAC Chairperson Jaushieh Joseph Wu states at a question-and-answer session at the Legislative Yuan that there is still a possibility of accidental conflicts between both sides of the Strait. Therefore, both sides are urged to resume negotiations as soon as possible, to establish confidence building measures to avoid probable accidental conflicts, and to pursue peace across the Strait.

October 10, 2004
President Chen Shui-bian points out in his address at the National Day Rally that the sovereignty of the Republic of China is vested with the 23 million people of Taiwan. The Republic of China is Taiwan, and Taiwan is the Republic of China. This is an indisputable fact. If both sides are willing, on the basis of goodwill, to create an environment engendered upon "peace and development and freedom of choice," then in the future, the Republic of China and the People's Republic of China--or Taiwan and China--can seek to establish political relations in any form whatsoever. We would not exclude any possibility, so long as there is the consent of the 23 million people of Taiwan. He also reaffirms the promises and principles set forth in his inaugural speech. Those commitments will be honored during his presidency. It is hoped that, with greater wisdom, both sides could create better opportunities for new development on cross-strait relations. Both sides can use the basis of the 1992 meeting in Hong Kong, to seek possible schemes that are "not necessarily perfect but acceptable," as preparation of a step forward in the resumption of dialogue and consultation. Both sides should formally end the state of hostility across the Taiwan Strait and establish confidence-building measures through consultations and dialogues. Furthermore, both sides should review their armament policies and seek to establish the "Code of Conduct across the Taiwan Strait" as the tangible guarantee of permanent peace in the Taiwan Strait. The executive branch is currently formulating a plan that provides convenient and efficient means to facilitate chartered flights for passengers and cargo. It is our earnest hope that cross-strait consultations can begin as soon as possible, so as to seek further progress in the "Three-Links" policy. Upon the completion of the year-end legislative election, he intends, with utmost sincerity, to invite leaders from all political parties to collaborate in establishing a Committee for Cross-strait Peace and Development and forging ahead with the constitutional reform project.

October 10, 2004
The MAC issues a press release stating that both sides of the Strait should exhibit goodwill to create an environment engendered upon "peace and development and freedom of choice." Extending an olive branch to China in his National Day address, the President proposed a new idea to improve cross-Strait relations and open the window of opportunity for cross-Strait negotiations. Since "peace and development" are the common mindset and language shared by both sides of the Strait, we earnestly urge that China to respond to the goodwill exhibited by the President in a practive, positive manner.

October 13, 2004
In an address at the "2nd General Assembly of the Sixth-Term General Chamber of Commerce of the Republic of China," Executive Yuan Premier Yu Shyi-kun states that President Chen Shui-bian has already transmitted his greatest goowill when he talked on cross-Strait relations during his 2004 National Day address. The administrative branch will also commence negotiations with the other side of the Strait as soon as possible on a plan that provides convenient and efficient means to faciliate chartered flights passengers and cargo, so as to seek further progress in the "Three-Links" policy. We hope the Chinese Government will take advantage of the opening of the "window of opportunity" and return to the spirit of the 1992 meeting in Hong Kong, which is "putting aside the controversies and engaging in pragmatic negotiations," to resume cross-Strait dialogue as soon as possible.

October 13, 2004
Executive Yuan Spokesperson Chen Chi-mai states that the implementation of the chartered flights during the Chinese Lunar New Year Holidays last year for Taiwanese businessmen returning to Taiwan was a very valuable experience, and preconditions should not be set to create obstacles in the future implementation of the cross-Strait chartered flights during the Chinese Lunar New Year Holidays. The Executive Yuan has already expressed its position clearly that negotiations should be carried out for "two-way flights that do not stop over at a third area." It is hoped that the Mainland authorities would make good use of this window of opportunity to properly understand the active and positive goodwill transmitted by President Chen Shui-bian in his National Day address and resume negotiations with us as soon as possible on the basis of the 1992 meeting in Hong Kong.

October 13, 2004
The MAC issues a press release on a plan that provides convenient and efficient means to facilitate chartered flights for passengers and cargo saying that under the circumstance that both sides of the Strait will not set any preconditions, the Taiwan Government already decided on October 11 to approve the "two-way flights without stopping over at a third area" and welcomes any appropriate person authorized by the Mainland to engage in negotiations with us. We will jointly promote communications with the Mainland side with our greatest flexibility and utmost sincerity.

October 17, 2004
In an article specially written for the bimonthly New Zealand International Review, MAC Chairperson Jaushieh Joseph Wu points out that peace and development should be the paramount objectives in cross-strait relations. Both sides of the Strait can work together to create a cooperative mode by the following four stages: In the first stage, already underway, Taiwan is pursuing a conciliatory and open policy toward China. Taiwan's government has reviewed its cultural and economic exchange policies, and would like to expand the scope of these cross-strait interactions. In the scond stage, Taiwan will pursue dialogue and negotiation with China on substantive issues, such as investment protection, avoidance of double taxation, legal arbitration, IPR protection, joint efforts to combat cross-strait crime, and direct transportation links. Through negotiation of these substantive issues, Taiwan and China may slowly build confidence and gain each other's trust. In the third stage, Taiwan will seek to establish an interim framework for peace and stability to govern the activities between the two sides before a final settlement can be found. The pursuit and maintenance of peace should be the paramount guideline within this framework so as to ensure that neither side resorts to extreme means to change the status quo. In the fourth and final stage, the two sides will work out their political differences for a final settlement. Whatever form this takes, Taiwan should be able to maintain its self-rule without jeopardizing its democratic system. Taiwan does not exclude any form of political relationship with China, so long as Taiwan's democracy is recognized and the people agree to it.

October 18, 2004
MAC Chairperson Jaushieh Joseph Wu and newly-appointed Vice Chairman David Wei-Feng Huang jointly meet former Dutch Defense Minister Dr. Willem Frederik van Eekelen and his delegation, who are in Taiwan upon the invitation of the Institute for Taiwan Defense and Strategic Studies to attend the Symposium on Submarines and Taiwan's National Defense Security. During the meeting, the Mainland side is urged to use the basis of the 1992 meeting in Hong Kong to commence pragmatic negotiations with Taiwan as soon as possible on the issues that concern both sides of the Strait, to create a win-win situation for both sides of the Strait.

October 22, 2004
Receiving US Representative Dan Burton, President Chen Shui-bian emphasizes that since his inauguration on May 21, 2000, the Taiwan side has extended at least thirty olive branches to the Mainland authorities. We should insist on pursuing of the normalization of cross-Strait relations. Both sides of the Strait should reopen the door to negotiations, and they must keep contact, and engage in dialogue and negotiations with each other, to minimize unnecessary misunderstandings and miscalculations. Only in this way will there be permanent peace on both sides of the Strait.

November 3, 2004
Upon the invitation of the General Chamber of Commerce of ROC, MAC Chairman Jaushieh Joseph Wu delivered a keynote speech pointing out that we did not intend to antagonize Mainland China; what we have been considering has been how to live in peace with them. Taiwan has always tried to create an environment of goodwill and reconciliation, and its goal has always been to pursue cross-strait peace, stability and development. The cross-strait policy after May 20 is "goodwill, active cooperation, and permanent peace."

November 10, 2004
President Chen Shui-bian issues a ten-point directive at a high-level national security meeting, as follows:

1. The maintenance of stability and peaceful status quo across the Taiwan Strait has been an issue of concern to the international community, in which the United States plays an important role. Taiwan and the U.S. have long shared the universal values of democracy, freedom, and human rights. In the last half a century, the democratic and economic developments in Taiwan have become a shared asset-rather than liability-of the international society. We appreciate the U.S.' steadfast and consistent support for Taiwan pursuant to the Taiwan Relations Act and in accordance with the Six Assurances. In the future, Taiwan and the United States-as an alliance of shared-values and based on existing foundations-should continue to collaborate together to safeguard peace and stability in the Asia-Pacific region. We must have clear assessment of the current situation, and consolidate and fully utilize our resources, so as to seek the greatest welfare of our country. Therefore, we must explore the possibility and feasibility of establishing a Society of International Friends of Taiwan, in order to seek understanding and support from the international community.
2. We believe that the next two years will be a crucial and opportune time for the resumption of cross-strait dialogue and for the pursuit of long-term stability and peaceful development. Governments and leaders on both sides of the Strait should seize this opportunity and employ wisdom--to open a favorable "window of opportunity" for long-term development, and to seek security and prosperity of both our peoples. In spite of the absence of immediate response from the other side to our goodwill and sincere gestures--due to various factors-our determination and patience will not change. We would also like to re-emphasized that our policy for cross-strait development, laid out in my Inaugural Speech and my National Day Address, will not change during my presidency. Based on the two above-mentioned "will not change" assurances, our governmental agencies will actively formulate a "sunshine policy" for the resumption of dialogue, decreasing tension, and enhancing cooperation and development across the Strait.
3. We are fully cognizant of Beijing's stance on its insistence of the "One China" principle. However, we urge the other side to face the reality of the existence of the Republic of China, as well as the conviction of the 23 million people of Taiwan in democracy and in being the masters of our own land. If both sides can be understanding and magnanimous toward each other, differences and hostility can be resolved through peaceful dialogue and rational consultations. The meeting in Hong Kong in 1992 was conducted in such spirit.
4. Building upon the basis of the 1992 meeting in Hong Kong, our government will actively promote cross-strait trade and cultural exchanges, including the "Three Links." To open an opportunity for cross-strait direct transportation, we propose that at the current stage, both sides can use the Taiwan-Hong Kong commercial air route negotiations as a model, to immediately start consultation regarding the cargo chartered flights and lunar new year passenger chartered flights that are two-way, reciprocal, and do not have to stop in a third location.
5. To actualize the economic strategy of "deeply cultivating Taiwan while reaching out to the world," the Government will draw on the global operational experience of the private sector, both local and foreign, and formulate policy plans for state-owned enterprises to set up overseas operations or engage in global investment. In addition, the Government will also take proactive measures to attract foreign capital and talents so that foreign corporations would invest or set up branch offices in Taiwan--such measures will expedite the internationalization of local industries and help Taiwan respond effectively to globalization.
6. In order to reduce military tension across the Taiwan Strait and to promote military reform, efforts have been made to accelerate the process of transforming our forces into a small but high-quality professional armed forces, and strengthen our self-defense capabilities. In addition, the Ministry of National Defense has completed the plans to reduce compulsory military service term to 18 months, starting on July 1 next year. If the plans to recruit voluntary forces turned out well, we could further reduce the compulsory service term to 12 months and achieve a force reduction of 100,000 troops by the end of 2008.
7. For humanitarian reasons and in compliance with international norms, we believe that no weapons of mass destruction--such as nuclear, biological, and chemical weapons--should be used in the Taiwan Strait. Our government hereby offers its assurance that Taiwan will never develop such weapons of mass destruction. Meanwhile, we urge the People's Republic of China to openly renounce the development and use of weapons of mass destruction.
8. To prevent accidents that result from misjudgment, we propose that both sides work together to establish military buffer zones. Military aircrafts and ships of both sides should not enter these zones unless absolutely necessary and with advance notifications to the other side.
9. There are precedents of communication mechanisms between opposing sides of military standoffs--such as North and South Koreas, India and Pakistan. We propose that both sides draw experience from the 1972 Incidents at Sea Agreements between the United States and the USSR, and the 1998 Military Maritime Consultative Agreement (MMCA) between the United States and the PRC, and establish a "Taiwan Strait consultation mechanism" for military security. Through this mechanism, the "Code of Conduct across the Taiwan Strait" can be developed successively.
10. Stability of the Taiwan Strait should be placed above the interests of each political party and individual. Cross-strait peace and development are the earnest hopes of the people of Taiwan. Only when Taiwan is domestically united and politically stable can we engender most favorable conditions for advancing cross-strait relations. After the legislative election at the end of this year, the administration will make every effort, with utmost sincerity, to invite opposition parties and representatives from various sectors of the society to participate in the establishment of a "Committee for Cross-strait Peace and Development". And we will not exclude the possibility of having a leader from the opposition parties to assume its chairmanship. By so doing, we hope to galvanize consensus among all political parties and all our people to jointly put together an enduring set of "Guidelines for Cross-strait Peace and Development," and actively foster a new cross-strait relationship of peace, stability, prosperity and sustainable development.

November 12, 2004
The MAC releases a press release stating that it will refer to the model taken by and the experiences gained at the commercial air route negotiations between Taiwan and Hong Kong in 2002 in formulating the concrete details as soon as possible on the negotiations with Mainland China on the cargo chartered flights and the lunar new year chartered flights that are two-way, reciprocal, and that do not have to stop in a third location. After the Mainland's attitude becomes clear, we will immediately entrust the Taipei Airlines Association to render assistance on the bilateral negotiations on related matters, to enable the chartered flights for passenger and cargos to smoothly embark as soon as possible, and to open an opportunity for cross-strait direct transportation and for reciprocal and mutually beneficial exchanges.

November 17, 2004
The MAC releases a press release pointing out that the cross-strait chartered flights during the lunar new year are arrangements made based on humanitarian considerations to provide convenience to Taiwanese businessmen returning home for the lunar new year. In the course of the preparations for the unprecedented chartered flights during the lunar new year two years ago, China did not set any political preconditions. We hope that we will also operate on the same foundations this year, and simplify the procedures for the lunar new year chartered flights. It is hoped that both sides would commence negotiations as soon as possible to make the necessary preparations.

November 25, 2004
Premier Yu Shyi-kun states at an exclusive interview with Deutsche Welle (Voice of Germany) that the Republic of China is a sovereign and independent country, and does not belong to China. We have extended much goodwill to the Mainland and hope that we could resume dialogues on the foundation of parity, conduct exchanges on the basis of "peace and development" and "free will," and be able to create a benign atmosphere after engaging in communications. We will not exclude the possibility of establishing any form of mutually acceptable cross-strait relations, as long as there is the consent of the 23 million Taiwanese people.

December 1, 2004
Receiving Utah Governor Olene Walkerthe, President Chen Shui-bian states that the top mission of his second term is to stabilize both sides of the Strait, to pursue permanent peaceful development on both sides of the Taiwan Strait, and to complete normalization of cross-strait relations. The Taiwan Government hopes to immediately reopen the door to cross-strait negotiations on the foundation of the 1992 meeting in Hong Kong.

December 4, 2004
MAC Chairman Jaushieh Joseph Wu presents a proposal on Academic Confidence Building Mechanism (ACBM) at the Third Forum on Taiwan-Japan Exchanges. The concrete steps in the Academic Confidence Building Mechanism include the following:

1. Both governments appoint on each side an outstanding scholar of law and politics or international relations to station on a long-term basis on the other side. After notifying the other side through the existing channels, the appointed scholars shall engage in an in-depth investigation and study, as well as write a report which could be confidentially transmitted back to serve as a reference to each government's administration.
2. After a standard period of time, for example two or three years, each government may appoint another scholar in place of the previous one, after notifying the other government of the replacement.
3. The scholars appointed by each government may, upon authorization, act as a bridge for the exchange of information between both governments.
4. The scholars appointed by each government shall be recognized by the government on the other side, and whose conduct of research and interviews and public engagement in academic activities shall be protected. They shall also enjoy as well certain privileges of diplomatic personnel.
5. The scholars appointed by each government shall be allowed to bring along some doctoral students for joint conduct of research.
6. Both governments shall mutually inform each other of major international conferences through these scholars. An invitation shall be extended to the other side for participation in public forums.
7. Upon the appointment of these scholars, the academic circles of each side shall immediately avail of this channel to restrain from engaging in any public commentaries that may cause embarrassment to the other side or contain strong feelings of hostility.

December 8, 2004
The MAC issues a press release officially allowing news reporters of Mainland Chinese news agency, the China News Service, to station in Taiwan to cover news events.

December 8, 2004
MAC Chairman Jaushieh Joseph Wu states in response to questions raised by reporters at the International Media Press Briefing that the Lunar New Year chartered flights could serve as a very good starting point for the resumption of cross-strait negotiations, as well as a window of opportunity for improving cross-strait relations. The previous statements of the Chinese authorities on the Lunar New Year chartered flights had not been consistent, which shows that China has not yet made any final decision on the matter. However, it has not yet closed the door either, and therefore "there is still a chance for the Lunar New Year chartered flights to be realized." Chairman Wu emphasized that the Government has already relaxed previous restrictions on the Lunar New Year charter flights proposal last year. Now the Government has also agreed on the principles that the flights can be "two-way, reciprocal, and do not need to stop in a third location." Taiwan's constitutional reform would neither touch on sovereignty issues nor change the status quo across the Taiwan Strait. On the contrary, China has repeatedly engaged in diplomatic oppression of Taiwan and made several attempts to disrupt the balance between the military strengths of both sides, belittling the status of Taiwan through its so-called "one China" principle. This is unilaterally changing the status quo.

December 17, 2004
The MAC issues a press release stating the following:

1. With regard to the Lunar New Year chartered flights for Taiwanese businessmen, China is urged to respond to Taiwan's proposal as soon as possible, and to engage in negotiations with Taiwan on the Lunar New Year chartered flights that are "two-way, reciprocal, and do not have to stop in a third location." We are willing to adopt the model implemented for the 2003 Lunar New Year chartered flights, in which Taiwanese airline companies will be responsible for implementing the charter flights this year.
2. President Chen Shui-bian mentioned on the eve of the 2004 legislative election that a Committee for Cross-strait Peace and Development would be convened after the election. This declaration will not change due to the result of the election. Therefore, he has directed all government agencies involved to make preparations for the formation of the Committee.
3. Based on information gathered from various sources, China has started the legislation of its National Reunification Law, which is a part of its "three warfares" (including legal warfare, psychological warfare, and media warfare). We seriously urge the Chinese authorities to think twice and not to repeatedly miscalculate the firm conviction of the Taiwanese people's love for peace and their opposition against military threat, for the sake of long-term development in cross-strait relations and regional peace and development.

December 20, 2004
With regard to Hu Jintao's vigorous propaganda on "one country, two systems" in Macao, Executive Yuan Spokesperson Chen Chi-mai states that Taiwan is a sovereign and independent country, and should not be mentioned in the same breath as Hong Kong and Macao. After more than a decade of democratization and liberalization, it is simply impossible for the Taiwanese people to accept China's unilateral arrangement of "one country, two systems."

December 27, 2004
Addressing a gathering of the Eleventh Research on the Chinese Financial System, MAC Chairman Jaushieh Joseph Wu states that with regard to cross-strait trade and economy, it has become a normal phenomenon for Taiwanese businessmen to engage in investments in the Mainland. The sustained expansion of cross-strait trading is also a long-term trend, and the Government's promotion of cross-strait "direct transportation links" and the "Mini-Three-Links" have become established policies. It actively promotes the policies on Freight Facilitation and the chartered flights for passengers and cargo during the transition period. In cross-strait financial exchanges, the agencies involved should also continue to evaluate cross-strait financial exchange policies, including the expansion of the functions and the scope of Overseas Banking Units (OBU) and the pilot implementation of the exchange of the mainland-issued renminbi currency in Taiwan, which are currently being assessed and planned.

December 27, 2004
MAC Chairman Jaushieh Joseph Wu reiterates at a tea party with foreign news reporters that in order to minimize misunderstandings across the Strait, the Government's policy and goal of establishing mutual trust through normalized interaction has never changed. This has been actively promoted by the Taiwan Government. In the spring of next year, the Government will form a Committee for Cross-strait Peace and Development to consolidate the people's consensus on cross-strait issues and to actively pursue opportunities for establishing a Framework of Interaction for Cross-strait Peace and Stability. This is to effectively manage cross-strait relations and to prevent any conflict before both sides can reach a final resolution. We are willing to conduct dialogues and negotiations with China on any issues, including political issues, to reduce cross-strait tension. However, China has declared its intention to enact an Anti-Separation Law that is targeted at Taiwan. For Taiwan, this is unilaterally changing the cross-strait status quo and is a serious provocation. It has therefore made an urgent appeal to the international community to immediately prevent China from proceeding with this action.

December 27, 2004
With regard to China's release of its 2004 White Paper on National Defense, Executive Yuan Spokesperson Chen Chi-mai urges both sides of the Strait to jointly establish a military confidence-building mechanism, to safeguard peace and stability across the Taiwan Strait.

December 28, 2004
The MAC issues a press release urging China to address the promotion of the Lunar New Year chartered flights as soon as possible, and to resume negotiations with Taiwan, to enable Taiwanese businessmen to smoothly arrange their schedules for returning to their hometowns during the Lunar New Year holidays.