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U.S. cautious on China's warning

Panetta March 17, 1996
Web posted at: 9:30 p.m. EST (0230 GMT)

WASHINGTON (CNN) -- The Clinton administration responded cautiously Sunday to a warning from China to steer clear of the Taiwan Strait -- the 90-mile-wide body of water separating the western coast of Taiwan from the Chinese mainland.

U.S. naval forces are monitoring Chinese war games from a post about 200 miles off the eastern coast of Taiwan.

Chinese Premier Li Peng warned international powers Sunday not to deploy its naval fleet into the Taiwan Strait, saying such an act would aggravate tensions between China, Taiwan and the United States.

"If some people attempt to stage a show of force in the Taiwan Strait, this would be no help. On the contrary, it would aggravate and complicate the situation," Li said in a news conference after being asked how China would respond if U.S. ships entered the strait.

Taiwan map "The Chinese government will in no way accept the practice of one country imposing its views on another," he added.

White House Chief of Staff Leon Panetta avoided a direct response Sunday to Li's warning and refused to say whether the United states would send forces through the Taiwan Strait.

Instead Panetta urged a peaceful resolution to increasing tensions between China and Taiwan.

"Our hope would be that (China) would back off and resort to a peaceful solution to that situation and there's nothing further about where we deploy those vessels. That's not something I will tell you or the country at this point," Panetta said on CBS's "Face the Nation." (335K AIFF sound or 335K WAV sound)

White House spokesman Brian Cullen said the United States does "reserve the right to transit international waters," but also declined to say whether U.S. forces will test China's warning.

The United States has sent two aircraft carrier groups -- led by the USS Independence and USS Nimitz -- to the region to monitor the war games, which are scheduled to end Wednesday.

Beijing completed separate week-long missile tests close to Taiwan on Friday, only to announce more exercises will be conducted from Monday through March 25. The new exercises will consist of ground, naval and air maneuvers in the Taiwan Strait.

Lee says Taiwan will not bend

Taiwan holds its first direct presidential election next Saturday. In a nationally televised forum Sunday with four presidential candidates, incumbent and front-runner Lee Teng-hui attacked China for its military exercises.

"Communist China conducted state terrorism toward Taiwan by using missile tests just before the elections," Lee quoted a university professor as saying. "This terrorist behavior is aimed at dominating Taiwan's elections."

The other candidates criticized Lee regarding the current crisis. One candidate suggested that Taiwan "should sign a peace agreement" with China and "slow down the process of seeking a U.N. seat." The government in Taipei lost its U.N. seat in 1971 to the government in Beijing, and has explored ways to win it back.

Lee, however, did not give ground, saying Taiwan's stance would not change. "We cannot dance to their tune," he said

China has said the exercises are intended to intimidate Taiwan's 21 million residents before the elections, which Beijing fears could encourage an independence drive. China reinforced its intimidation tactics Saturday by saying it has not ruled out invading Taiwan if it seeks independence.

In Taiwan's capital Saturday, thousands of demonstrators gathered undeterred by Beijing's threats, protesting what they called the Chinese aggression and calling for Taiwanese independence. At one point, the crowd burned an effigy of Chinese senior leader Deng Xiaoping.

But with the election less than a week away, Taiwan is preparing for the worst.

Two small islands with 300 residents have been evacuated and local election commissions were asked to set up special teams to handle emergencies that might arise during Saturday's voting.

'Common ground' needed with U.S., Li says

The election marks the first time the people of Taiwan have freely and directly chosen their president. That prospect and efforts by Lee to win greater international recognition for the island have infuriated Beijing, which regards Taiwan as a renegade province.

Furthermore, China has repeatedly told the United States not to meddle in its business.

In Sunday's speech, Li -- despite his harsh statements toward the United States -- said China and the United States should seek "common ground" to resolve the issue peacefully.

"The only correct way of ironing out these differences is to carry out dialogues and cooperate on an equal, friendly and frank basis -- seeking common ground while reserving differences, enhancing understanding, reducing troubles and refraining from confrontation," the Chinese premier said.

U.S. Treasury Secretary Robert Rubin arrived in Hong Kong Sunday for a visit, and U.S. officials said he would send a message to China that its recent conduct puts its Most Favored Nation trade status at risk.

Reuters contributed to this report.

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