Taiwan's Chen to skip chilly US transit stop

TAIPEI, May 9 (Reuters) Taiwan's President Chen Shui-bian has decided to avoid the United States on his journey home from a Latin American visit, as officials played down the fall-out of the diplomatic spat between the island and its closest ally.

Taiwan has been upset that the United States would only permit Chen transit via Alaska, instead of a preferred stopover in New York en route to the region.

Foreign Minister James Huang told reporters in Costa Rica, where Chen was attending a presidential inauguration, that the president would instead fly to the Dominican Republic and then on to Abu Dhabi before returning to Taiwan.

''The decision won't have any impact on relations between Taiwan and the United States,'' said Chen in a news conference broadcast live in Taiwan on Tuesday. He added that in fact it was better for both sides that he didn't transit via Alaska.

Chen has not directly criticised the United States over the matter, and instead has placed the blame squarely on pressure from China, which regards Taiwan as a renegade province.

In Beijing, Chinese Foreign Ministry spokesman Liu Jianchao said: ''We resolutely oppose Chen Shui-bian engaging in splittist activities in countries that have diplomatic ties with China under any name, excuse or in any fashion.

''This stance is consistent and clear. The US side also knows it well,'' Liu said.

''We object to some countries establishing so-called official relations with Taiwan and defying the spirit of relevant UN resolutions. We hope they can adopt a correct policy regarding the Taiwan issue,'' he added.

Due to Chinese pressure, Taiwan only has formal diplomatic ties with 26 mostly small, poor countries.

Analysts said Chen's rejection of an Anchorage transit may have been a factor weakening local stocks, which ended down 1.14 per cent as investors eyed a possible worsening of ties with the island's closest ally and arms provider.

REUTERS OM PM1600