TOUGH TALK IN CHINA

The Koo delegation made little progress in advancing another key Taipei plank - that the two sides should deal with each other as separate but equal Chinese political entities. When Jiang met with Koo, he did so in his capacity as head of the Communist Party, echoing his guest's high post in the KMT. That seemed to accord with Beijing's preference for negotiations to be along party-to-party lines, between the historical antagonists.

Such contrasting views make it hard to see how a much-debated mainland trip by Taiwan's president might be possible. China certainly won't receive him as a head of state, and Lee does not want to visit as a mere party leader. Beijing, of course, has long suspected that Lee secretly favors independence and only goes through the motions of negotiating to stretch things out.

Some observers have argued that Lee agreed to the talks to buttress his fading political prospects. Says Li Ming, an independent Taiwan television producer working in Beijing since 1990: "I don't harbor any illusions about Lee. He's making preparations for re-election in 2000, even though he has declared he won't run. He must appear to be on top of mainland issues." Another Taiwan native living in Beijing believes that the only reason Koo is at the negotiating table is American pressure.

Indeed, the United States was the invisible third party at the Shanghai and Beijing meetings. After President Bill Clinton declared during his recent trip to China that Washington does not support Taiwan independence, "two Chinas" or Taipei's membership in international bodies for sovereign states, Jiang may have felt obliged to resume talks to maintain good ties with the U.S. Similarly, Washington has been pressing Taiwan hard to negotiate.

During the missile crisis of 1996, the U.S. sent two aircraft-carrier battle groups near the Taiwan Strait to discourage China from any direct attack on Taiwan. It was one of the most tension-filled confrontations in East Asia in recent years. Since then, the Americans have resolved not to let the influential Taiwan lobby or any other party to the longstanding Chinese feud drag them into a war they don't want.

Koo emphasized that his mission was to "melt the ice," not "break the ice," and that the two sides needed to establish trust. So, not surprisingly, much stress was placed on symbolic sightseeing and other pleasant activities. Koo's hosts catered to his well-known love of Beijing opera. They arranged for the Shanghai Beijing Opera Troupe and others to perform some of his favorite set-pieces, with Koo joining in at one point. He had a chance to highlight common links when his wife, Yen Chuo-yun, laid a wreath, on behalf of Soong Mei-ling, at the tomb of the latter's parents. Soong, who at 101 is still living in the U.S., is the widow of Nationalist leader Chiang Kai-shek.

A visit to Pudong district, Shanghai's showcase for finance, high technology and foreign investment, was a way to highlight Taiwan's continuing involvement in the mainland's fast-growing economy ($2.4 billion invested in 500 companies in Pudong alone). The tour was also a reminder that many nuts-and-bolts issues await resolution. Koo stressed an urgent need to deal with the practical matters affecting the increasing number of Taiwan visitors and business people operating in China.

Indeed, Taipei is feeling local pressures to revise its longtime ban on direct contacts with the mainland. The American Chamber of Commerce recently added its voice to the chorus. Since the disruption of the SEF-ARATS talks three years ago, many problems have piled up, from investment protection to mutual notification of military maneuvers. The two sides will not lack for topics of conversation as they push ahead with their dialogue.

- With reporting by Laurence Eyton/Taipei