(Hmm...this is really about establishing an American presence near China, isn't it? Like a countermove to the Chinese presence in Panama etc. ...)

Wednesday April 25 7:04 AM ET
Bush Toughens Taiwan Policy, Vows to Defend Island

By Andrew Browne

BEIJING (Reuters) - In an apparent toughening of the U.S. position on Taiwan, President Bush abandoned long-standing ambiguity and declared the United States would defend the island if it was attacked by China.

But after approving the biggest arms package to Taiwan in a decade, Bush also tossed a few olive branches to Beijing, telling the Washington Post he did not view China as an ``enemy'' and announcing an end to annual reviews of arms sales to Taiwan.

China, meanwhile, maintained its measured response to the arms package -- and had no immediate comment on Bush's pledge to defend Taiwan -- indicating both sides were anxious to limit the damage to their relationship.

In an interview taped for ABC's ``Good Morning America,'' Bush said Washington would do ``whatever it took'' to defend Taiwan.

Asked whether Washington had an obligation to defend Taiwan from Chinese attack, Bush said: ``Yes, we do and the Chinese must understand that.''

``Yes, I would,'' he added.

Previous U.S. administrations have stopped just short of promising to send forces to Taiwan's aid in the event of war with China, although they have sent strong signals that they would intervene.

In 1996, the United States sent two battle carrier groups steaming toward Taiwan after China conducted missile tests to intimidate the island ahead of presidential elections.

China No ``Enemy''

Under the 1979 Taiwan Relations Act, the U.S. administration is obliged to provide Taiwan with weapons needed to defend itself.

But Bush told the Washington Post a near 20-year policy of annual reviews for providing such arms would be scrapped.

Such reviews put U.S. administrations in an awkward position by having to publicly approve or reject items in a long shopping list of arms presented by Taiwan, which has powerful support in Congress.

``We have made it clear to the Taiwanese that we will not have this co-called annual review --- that we will meet on an as needed basis,'' Bush told the newspaper in an interview.

Bush said he expected his state visit to China would go ahead as planned in October.

``And I do not view China as an enemy,'' Bush said.

``I view China as a partner on some issues and a competitor on others,'' he said. Competition ``does not necessarily mean distrust, anger, you know, furor,'' he added.

Bush's comments on defending Taiwan were certain to alarm China, which fears the United States is drifting toward a de facto military alliance with an island Beijing regards as a wayward province to be reunified by force if necessary.

Washington has always been reluctant to give an explicit commitment that would antagonize Beijing, encourage pro-independence forces on Taiwan and remove an incentive for Taipei to resolve its differences with the Chinese mainland peacefully.

Biblical Authority

One Beijing-based Western diplomat said Bush's comments represented a clear change, although it was possible Bush had spoken out of turn and there could be some rowing back.

``This is certainly much stronger than comments to date,'' he said. ``The Chinese put great store on the words of the president,'' the diplomat said.

``In the way their system works, the president's words are not as loose as in the West and they are considered to have the weight of biblical authority. They tend to interpret foreign leaders' words that way as well,'' he added.

The right wing of the Republican Party has been pushing for an unambiguous statement of U.S. intention to protect Taiwan in the face of rapid Chinese military build-up of missiles and naval forces, which the latest arms package is intended to counter.

China has an estimated 300 missiles pointed at Taiwan along its southeastern coast and the United States estimates it is adding about 50 every year.

Beijing has spent billions of dollars on sophisticated Russian weaponry and has so far bought about 50 SU-27 fighter jets, four Kilo class diesel submarines and two Sovremenny destroyers armed with ``Sunburn'' anti-ship cruise missiles.

In Taiwan, a statement issued by the presidential office said the latest arms package would help redress the balance.

``This helps to raise Taiwan's defenses, fortify the people's confidence and also maintain a military balance and stability in the Taiwan Strait,'' the statement said.

``It will be conducive to opening constructive dialogue between the two sides on an equal basis.''

China-U.S. Tensions Rising

Bush's remarks coincided with rising tension between Washington and Beijing.

China is still holding a U.S. spy plane that made an emergency landing on Hainan Island after a collision with a Chinese fighter jet on April 1. Beijing is demanding an end to American surveillance flights off its coast. Washington refuses to halt them.

The White House brushed aside Tuesday a formal protest from Beijing over its approval of the sale to Taiwan of sophisticated arms, including four Kidd-class destroyers, eight diesel submarines and a dozen P-3 submarine hunter planes.

It was the biggest arms package for Taiwan since the early 1990s when the island bought 150 American F-16 fighter jets and 60 Mirage 2000-5 fighters and six Lafayette-class frigates from France worth billions of dollars.

Still, in a sign of business-as-usual on the trade front, U.S. car giant Ford announced a $98 million joint venture in China, a milestone in the company's efforts to crack the rapidly growing passenger car market.

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