Taiwan's Chen vows to keep promises on China-envoy

TAIPEI, Nov 21 (Reuters) Taiwan President Chen Shui-bian has assured the United States he will maintain status-quo relations with China, an envoy said today.

''Chen told me to tell Bush he will stick to the promises he made in his inauguration in 2004, which includes cross-strait matters,'' said Morris Chang, Taiwan's representative to the just-ended Asia Pacific Economic Cooperation summit in Hanoi.

Chang told a news conference after his return from APEC that US President George W Bush was ''very concerned'' with China-Taiwan relations.

Bush had asked Chang, chairman of Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest chip contract maker, to convey these concerns to the independence-minded Taiwan leader.

Due to pressure from China, Taiwan's president could not attend APEC, so the island appoints a non-political representative for every meeting.

Chen was re-elected to a second four-year term in 2004.

During his inauguration ceremony, he had ruled out any immediate steps toward independence and called for better ties with China, which sees the island as a renegade province that has to be unified with the mainland, by force if necessary.

Although Chen had then announced plans to adopt a new constitution by 2008, which Beijing views as a step toward independence, he had said the issues of sovereignty, territory and unification or independence would be excluded.

During the APEC conference, Chinese President Hu Jintao urged Taiwan and China to make economic development a priority, Chang said.

''Hu said the economic situation looks good on both sides, while other problems could be solved step by step,'' said Chang.

Despite political friction, China is the favourite investment destination of Taiwan companies due to a common culture, lower manufacturing costs and a potentially huge consumer market. China is also Taiwan's top trading partner.

REUTERS pdm ht1612