Taiwan president urges caution on China tourism

TAIPEI, Jan 31 (Reuters) Taiwan's independence-leaning president has called for caution in opening direct flights between the island and China, warning of security risks and lost business, his spokesman said today.

China and Taiwan deeply distrust each other as the mainland sees the self-ruled island as part of its territory since the two split after the civil war of the 1940s. Beijing has threatened to use force if Taiwan declares formal independence.

The island tightly restricts visits from Chinese citizens.

President Chen Shui-bian, seen as an advocate of Taiwan sovereignty, sounded the warning yesterday in a meeting with the newly elected mayors of the island's two biggest cities.

Taipei will lose business and work opportunities if cross-strait flights are too convenient, Chen told the mayors, Hau Lung-bin of Taipei and Chen Chu of Kaohsiung, according to a statement on the presidential office Web site.

People who shop or work in Taiwan now could take their money and manpower to China, he suggested.

''Therefore, cross-strait direct flights cannot just be looked at from the good side. We must also consider the negative aspects,'' the Web site said. ''We want to look at the pros and cons together.'' Taiwan's security remains a concern, too, said presidential spokesman David Lee.

Chen's words come as Taiwan and China negotiate an expanded tourism agreement that could allow as many as 1,000 Chinese arrivals per day. Chinese media reported this week that a major tourism-related consensus had been reached, but Taiwan said an important part of the accord still needed to be discussed.

Under an existing agreement, some of the estimated one million Taiwan business people and family members in China will take direct chartered flights home for the Lunar New Year in February.

REUTERS BDP BST1653