Taiwan president slams ouster effort amid protests

TAIPEI, Oct 10 (Reuters) Taiwan President Chen Shui-bian slammed a legislative proposal seeking to oust him today as thousands of protesters took to the streets, calling on him to step down over allegations of graft.

Speaking at an annual Taiwan National Day ceremony, Chen said the ''recall bill'' introduced last month was not aimed at ending corruption but at flipping the balance of power from the ruling Democratic People's Party to the opposition Nationalist Party.

The Nationalists, who once ruled all China, fled to Taiwan after losing the Chinese civil war in 1949. Since then, China has regarded self-ruled Taiwan as a renegade province that should be reunited with the mainland, by force if necessary.

Beijing is particularly mistrustful of independence-minded Chen.

''Since the ruling party took over in 2000, this is yet another new episode of the opposition's evil struggle,'' Chen said in the televised speech from the presidential offices.

He said Taiwan people should trust the island's legal system to root out any corruption.

Last week, Taipei prosecutors cleared first lady Wu Shu-chen of any crime associated with her acceptance of department store gift vouchers. Chen's son-in-law and a close aide still face possible legal action in unrelated cases.

''The law says people are all equal,'' Chen said. ''The president and his family are not exceptions.'' The ouster bill, introduced by an opposition legislator, is set for discussion and a vote later this week. A previous ''recall'' effort in June failed because proponents failed to secure the required two-thirds majority of 220 legislators.

Passage would lead to a voter referendum on whether to make Chen step down before his second four-year term ends in 2008.

As Chen spoke, more than 10,000 citizens organised by former ruling party chairman Shih Ming-teh gathered to call for his ouster.

Local TV images showed one protester threatening to set herself on fire, and others striking a ruling party legislator. About 5,000 police on foot and motorcycles patrolled demonstration sites where occasional scuffles broke out.

Protesters have gathered daily since September 9, with Shih vowing to continue the action until Chen steps down.

Reuters LL GC1020