Taiwan premier says to resign after primary loss

TAIPEI, May 12 (Reuters) Taiwan Premier Su Tseng-chang said today he would resign, a week after losing the ruling Democratic Progressive Party's primary for the 2008 presidential elections.

Su, who becomes the fifth premier to quit during the seven-year tenure of President Chen Shui-bian, assumed the post in 2006, replacing Frank Hsieh, who defeated him last weekend in the party's primary.

''To allow the president to strategise in the new environment, I am willing to cooperate and release myself and I have told this to the president and he has approved,'' Su told a news conference.

''Although I have given up my duties, I have not given up on Taiwan,'' Su said.

President Chen Shui-bian told reporters he would announce his decision later in the day. There was no immediate details on who would be Su's successor.

Su is popular amongst grassroots supporters after having been magistrate of the important Taipei county in the north and Pingtung county in the south.

He has also served as secretary-general of the presidential office under Chen and chairman of the DPP, a post he resigned from in December to take responsibility for the poor election showing.

In Taiwan's political system, the democratically elected president appoints the premier, who forms the cabinet and runs day-to-day government.

Chen is head of the military and sets policy towards China, which considers Taiwan a renegade province.

REUTERS SZ RK1031