Historic meeting of Taiwanese VP-elect Siew and mainland President Jintao 12 Apr marked first official Beijing visit by high-ranking Taiwanese politician since 1949. But cross- strait détente tempered by President-elect Ma Ying-jeou 8 Apr statements refusing to directly engage. Ma also appointed Lai Shin-yuan, former pro-independence Taiwan Solidarity Union lawmaker, as head of Mainland Affairs Council.

Nationalist Party candidate Ma Ying-jeou won 22 March presidential elections with 58% vote, promised to improve Chinese relations; concurrent referendums on UN membership failed to surpass 50% turnout threshold. Chinese Premier Wen 31 March invited Taipei to hold talks on economic cooperation and possible peace agreement. China voiced concern 26 March at disclosure ICBM parts accidentally included in 2006 U.S. arms shipment to Taipei.

Election commission 1 Feb said referendums on UN membership to be held despite U.S., UK opposition on 22 March, alongside presidential elections. Taipei said recognised Kosovo independence 19 Feb, provoking Chinese condemnation.

KMT opposition party won 72% of 12 Jan parliamentary vote (81 of 113 seats); seen as rejection of President Chen Shui-bian’s staunchly anti-China policies. Chen resigned as chairman of ruling Democratic Progressive Party (DPP). Malawi said broke ties with Taiwan, set up relations with China. 23 countries now recognise Taiwan.

Taiwan blocked placement of Chinese judge on WTO’s highest legal panel but said may reconsider if Taiwan assured fair treatment. U.S. announced $1bn military equipment upgrade for island 13 November; Chinese requested halt to U.S. sales to island, denied U.S. navy access to Hong Kong port 21 November. Chinese navy held large- scale military exercise off east coast of Taiwan, simulated pincer attack on island end November.

Taiwan held first National Day military parade in 16 years 10 October at which President Chen Shui-bian criticised mainland’s “relentless military build-up”. Chen agreed to return as leader of Democratic Progressive Party: first said independence to be centre of campaign for March 2008 presidential elections, later clarified referendum on UN membership not step toward independence but opposition to unification. PRC President Hu Jintao called for official peace agreement with Taiwan at CPC Congress 15 October opening but said would never compromise on independence.

Majority of countries voted to reject Taiwan’s 15th consecutive UN bid at 62nd General Assembly 21 September. Senior Chinese official Jia Qinglin condemned President Chen Shui-bian’s determination to proceed with March 2008 referendum on UN entry as threat to regional peace and security. But DPP party conference decided 30 September to take less radical stance on name-change issue in platform for 2008 elections.

Despite July rejection of Taiwan’s UN bid, Taipei’s diplomatic allies filed motion to add it to agenda of 62nd General Assembly, to be convened 18 September. U.S. deputy secretary state criticised moves by Taipei to organise referendum on renewing bid.

UN rejected Taiwan’s application for UN membership under its own name 24 July, citing adherence to 1971 resolution recognizing Taiwan as part of China. President Chen Shui-bian plans to hold referendum on joining UN despite rejection and opposition from U.S., Beijing. Taiwanese army said looking to buy 30 Boeing Apache attack helicopters from U.S. in deal worth $1.5bn, subject to approval of U.S. government and Taiwanese legislature.

Taiwan vowed to hold referendum on joining UN under own name despite Chinese and U.S. opposition. Legislature approved budget authorising spending on parts of long-delayed U.S. arms package 15 June; funds to be directed to purchase of maritime patrol aircraft and anti-missile defence equipment upgrade.