CNN - China to hold missile tests off Taiwan - China to hold missile tests off Taiwan

China to hold missile tests off Taiwan

Chinese leader also lists economic goals

March 5, 1996
Web posted at: 12:00 p.m. EST (1700 GMT)

From Bureau Chief Andrea Koppel

BEIJING (CNN) -- Chinese Premier Li Peng promised a rosy socialist future to 3,000 delegates who packed China's Great Hall of the People Tuesday at the start of this year's National People's Congress.

However, in the opening speech, Li also hinted again at using military force against Taiwan if it declares independence.

"We will not renounce the use of force (against Taiwan)"

-- Li Peng, Chinese premier
(77K AIFF sound or
77K WAV sound)

Hours before Li spoke, China announced plans to test missiles off Taiwan on Friday in a controversial move that some analysts said could shut down ports on the self-governed island.

The Taiwanese foreign ministry called on the international community to take action against China for its "unbridled behavior."

News of the missile exercises caused Taipei stock prices to fall as nervous investors began selling, and gold dealers said hoarding might begin. Taiwanese residents living near the China mainland began stocking up on food in case the exercises escalate into a conflict.

In a two-hour speech, Li took a tough line on foreign affairs, attacking "unwise" U.S. policies toward China and Taiwan. China has regarded Taiwan as a renegade province since a civil war ended in 1949. It has threatened to recover the island by force if Taiwan opts for independence.

"We are in favor of and have consistently been working for peaceful reunification, but we shall not undertake to renounce the use of force," Li said.

Intimidation or safeguard?

China's week-long military exercises in waters off Taiwan will be the fourth since last summer when the island's president, Lee Teng-hui, made a controversial private visit to the United States. Beijing accuses Lee of paying lip-service to reunification while pursuing independence.

Analysts see the string of war games as an attempt to intimidate voters before Taiwan's presidential elections on March 23. Lee is the front-runner.

"It's my guess that several days before March 23rd, they will fire several missiles over Taiwan itself," predicts Peter Yu of Sun Yat-sen University. (80K AIFF sound or 80K WAV sound)

Taiwan has warned of retaliation if a missile hits the island.

"If any of the missiles land within our 12-nautical-mile territorial waters, we will strike back immediately," said Defense Minister Chiang Chung-ling as quoted by a member of parliament. Lee sneered at Beijing, saying China was conducting the exercise because "it is afraid of (Taiwan's) first democratic presidential elections."

But China denies its aim is intimidation. The military exercises are "normal" and necessary to safeguard China's "territorial integrity," Chinese Foreign Ministry spokesman Shen Guofang said.

Economic priorities

While the bulk of Li's speech focused on economics, he offered few specifics for reinvigorating industry and farming, reducing poverty or improving government. China aims to keep economic growth at 8 percent a year while holding inflation to single digits, Li said.

New five- and 15-year plans stress more development and reform, adopting technology, modernizing farming, repairing state-owned industries, opening world trade markets, wielding "macro-economic" control, easing regional differences and building "spiritual civilization."

Li repeated Beijing's pledges to tackle crime, corruption and inflation but, unlike past years, offered little in the way of bold new approaches.

Condolences for Israel

On Tuesday, Li sent condolences to Israel for the recent deaths caused by terrorists.

"On behalf of the government and people of China and in my own name I hereby express to you, and through you to the families of the victims, my condolences and consolation," Li said in a message to Israeli Prime Minister Shimon Peres.

"The Chinese government is deeply shocked by these terrorist activities and strongly condemns them," Li said.

Related stories:

China, Taiwan buy new warplanes
Crucial time for U.S./China relations
U.S./China relations at lowest point in a decade
China's premier promotes reunification

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