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AP , Hong Kong
Pro-democracy figures claimed fresh momentum yesterday after tens of thousands of people rallied on the 15th anniversary of the bloody Tiananmen Square crackdown, but Beijing's local allies denounced the protest as a ploy to seek independence.

"People are geared up to speak out," opposition lawmaker Lee Cheuk-yan said Saturday.

Hong Kong people hold a candlelight vigil every year to commemorate China's military crackdown on unarmed students rallying for democracy in Beijing's Tiananmen Square on June 4, 1989, and this year's event was highly charged after China recently ruled out full democracy in the near term for Hong Kong.

Organizers claimed they attracted a 82,000 people, up from around 50,000 last year. Police put the number at 48,000.

Hong Kongers still mourn the hundreds, if not thousands, of people killed when China used troops and tanks to crush the mainland's democracy movement. China's decision in April that Hong Kong citizens cannot directly elect their next leader in 2007 and all lawmakers in 2008 added to the high emotions this year.

Beijing claims it had to use troops to break up a counterrevolutionary riot, and its local allies voiced sharp criticism Saturday of the candlelight vigil.

The <"Hong Kong has returned to the motherland with significant autonomy, but democracy sympathizers are still shouting `return power to the people.' Who do they want to return power to?" <

Hong Kong's pro-democracy camp has never advocated independence, though opposition lawmakers and activists say they would like to see China become democratic.

In related news, Chinese history textbooks in Hong Kong are to cover the 1989 Tiananmen Square showdown for the first time but will not describe the killing of students, a news report said yesterday.

The new textbooks for secondary school students carry descriptions about the incident for the first time, but one of them says simply that "on June 4, the government pacified the student movement."

The books makes no mention of the use of force, including tanks and machine guns, to clear the square in the showdown that led to the death of hundreds of students.

The textbooks will go on sale to Hong Kong students before the start of the next academic year.

CNA AND DPA , GUATEMALA CITY, GUATEMALA
A senior official of the Presidential Office expressed deep regret that a former military attache stationed in Guatemala protested while Vice President Annette Lu was receiving an honorary doctorate from Guatemala's San Carlos University on Friday.

Lu, who is on a two-day visit to Guatemala, visited the university right after her arrival at the Guatemalan Air Force airport and gave a speech at the Engineering School before receiving the honorary doctorate.

During the award ceremony, Kui Wu-yung, a former military attache of the embassy in Guatemala, unfurled a banner protesting the March 20 election results. The banner read "Truth, vote-rigging, shame."

Almost as soon as Kui unveiled the banner he was expelled by both local and Taiwanese security guards from the auditorium.

Deputy Secretary-General of the Presidential Office James Huang , who is a member of Lu's entourage, told Taiwanese reporters after the incident that the protester's behavior could harm the nation's image.

According to Huang, politics should not interfere in or "pollute" universities, since, he claimed, they are "traditionally considered by the West as sacred places."

He did not elaborate on this idea, but added that it is unwise to bring domestic political disputes to an ally's university, since such behavior could harm the country's international image.

Huang said Lu has done her utmost to promote the nation's diplomatic relations, even though the wounds she received in the March 19 assassination attempt haven't healed.

Diplomacy concerns the national interests and all political parties should help push the nation's diplomatic ties with other countries, Huang said.

Meanwhile, Chen Hsing-hsiung, who is president of the Taiwan Chamber of Commerce in Guatemala, said that he was opposed to the former attache's protest, noting that both President Chen Shui-bian and Lu were elected by the people and that the majority's choice should be respected.

Claiming that all the other Taiwanese expatriates living in Guatemala support the government and welcome Lu's visit, Chen Hsing-hsiung said that the protester's behavior does not represent their voice and stance.

Kui Wu-yung, second right, a former military attache to the ROC Embassy in Guatemala, holds up a protest banner reading ``Truth, vote-rigging, shame'' at a ceremony in which Vice President Annette Lu received an honorary doctorate at Guatemala's San Carlos University on Friday.

Lu was scheduled to meet with Guatemalan President Oscar Berger and Vice President Eduardo Stein during her visit as well as human rights leader and Nobel Peace Prize laureate Rigoberta Menchu.

SMUGGLING SUSPECTED: Officials say sensitive infrared technology may have been moved through a Hong Kong subsidiary to military-linked companies in China
STAFF WRITER , WITH AP
The government is investigating the suspected illegal sale of sensitive military technology by a local company to China, a Chinese-language newspaper reported yesterday.

The company, Queening Hi-Tech Co, was suspected of smuggling infrared technology through a Hong Kong subsidiary to companies linked to the Chinese military, the reports said.

The case has also attracted attention from the US because the technology originates from a California-based subsidiary of QHT, the newspaper said.

The infrared technology could be used for medical but also for military purposes, the newspaper said, adding that the US bans the export of such technology to China, North Korea, Libya, Iran and Iraq.

The Investigation Bureau questioned the company's general manager, Shih Kuei-chung , on Friday and searched his home and those of four other employees, the paper said.

The US FBI arrested his brother, Shih Kuei-sung , in San Francisco last month, the newspaper reported.

The Investigation Bureau and the Hsinchu chief prosecutor were not available for comment. QHT is based in the Hsinchu Science-based Industrial Park.

According to a report in another Chinese-language newspaper, Shih Kuei-chung claims that the whole incident is a result of the US government and arms dealers acting in their own political and commercial interests, and that his company has not broken any laws.

According to the report, QHT worries that the incident will destroy the reputation and business opportunities built by the company over the past 11 years. The company plans to publish a statement in newspapers tomorrow to explain the situation, file a lawsuit against claims that the company has been involved in espionage for China and ask that the government compensate QHT for any losses resulting from government agencies not providing the protection the company is legally entitled to.

The report goes on to quote Shih Kuei-chung as saying that QHT during its first five years of operations purchased optical infrared sensory equipment from the US, which was then imported to Taiwan and further developed into various infrared equipment for domestic military and civilian use, stressing that none of the equipment was sold outside this country.

Shih Kuei-chung, claiming that QHT no longer uses US equipment, is also reported as saying that because US legislation restricts re-exports of sensitive technology originating in the US, the company began purchasing its equipment from France six years ago, since French legislation does not include such restrictions.

CNA , TAIPEI
The government will soften its tone and rhetoric on cross-strait issues, despite Beijing's increasingly hawkish attacks on Taiwan's leadership and Taiwan's investors doing business in China, sources said yesterday.

As President Chen Shui-bian no longer faces the pressures of re-election, the sources said, maintaining peace will be his top policy guideline for his second term in office. Against this backdrop, the sources said, Chen will adopt a conciliatory tone and measures from now on to pave the way for resuming long-stalled cross-strait dialogue.

Among the conciliatory measures that have been adopted recently are Chen's declaration in his May 20 inaugural speech that so long as there is the consent of the 23 million people of Taiwan, the two sides of the Taiwan Strait can seek to establish relations in any form whatsoever; Mainland Affairs Council Chairman Joseph Wu's invitation to the top Chinese negotiator with Taiwan, Wang Daohan , to visit the nation; and Chen's recent announcement that his administration will expand and deepen its efforts to overcome problems with China.

The sources said Chen's decision to soften the tone on cross-strait issues is based on three considerations. First, there are hardline and moderate factions in Beijing regarding China's policy toward Taiwan. Beijing's sternly worded comments on the Taiwan issue May 17 and May 24 indicate that the hardline faction seems to have an upper hand at the moment. If Taiwan makes a strong response, the sources said, it would give the Chinese hardliners more ammunition to intimidate Taiwan.

Second, the sources predicted, as the US will hold a presidential election in November and Taiwan will hold legislative elections in December, China now will basically adopt a wait-and-see attitude toward cross-strait ties.

While China is not likely to change its basic policy tone toward Taiwan for the moment, the sources continued, Chen's administration must begin to pave the way now for a resumption of cross-strait dialogue after the year-end legislative elections. If the ruling Democratic Progressive Party (DPP) and its ally, the Taiwan Solidarity Union (TSU), can win more than half of the legislative seats up for grabs, the sources said, Beijing is expected to become more willing to engage with the Chen administration.

Third, the sources said, adopting a softer tone toward China could help defuse US pressure on Taiwan. Noting that Beijing has revised its strategy for dealing with cross-strait affairs, the sources said, Beijing now prefers to push the US government to force Taiwan to accept its terms. Against this backdrop, the sources said, the DPP administration must hold out olive branches and issue goodwill messages to China to convince the US government that it is sincere in wishing to forge rapprochement and reconciliation with China.

On Wednesday, the Executive Yuan approved a special budget for major weapons purchases, including NT$144.9 billion for Patriot antimissile systems, NT$412.1 billion for diesel electric submarines and NT$53 billion for long-range antisubmarine aircraft. The total cost was NT$610.8 billion, with funds to come from sales of state lands and stock in state-owned enterprises, as well as issuance of government bonds. The expenditure would be allocated over a period of 15 years (an average of NT$40 billion each year). In addition, a bill regulating major arms procurements was also approved during the meeting. Both the bill and the budgets will be sent to the Legislative Yuan for review and approval. Executive Yuan spokesperson Chen Chi-mai pointed out that making special budgets for major arms procurement was done for the purpose of preventing the national expenditure deficits from exceeding the the ceiling on government debts, and from crowding out the demands for other weapons or facilities.

China issued a declaration on May 17, making no attempt whatsoever to conceal its ambitions about engulfing Taiwan as well as indicating a willingness to stop Taiwan independence and to protect the sovereignty and territory of China at all costs. Recently, Beijing has directly named and criticized "pan-green Taiwanese businessmen." Against a backdrop of the tense cross-strait relationship, the approval of the NT$610 billion budget by the Executive Yuan for major arms procurement is significant. In recent years, the military budgets of our country have have been consistently decreasing. Under the circumstances, the NT$610 billion arms budget constitutes a weighty load on the state finance. The opposition has also questioned whether the move will launch an endless cross-strait arms race, leading to the ultimate financial collapse of Taiwan's government. If the government takes the appropriate steps in financial management, this will not happen. One example would be to release the state-owned land of Taiwan Sugar Co. for sale and to re-zone this for industrial development. The move would help the government obtain the necessary funds and would lower costs for industrial investors, as well as creating employment opportunities. This is indeed killing several birds with one stone. However, we must point out that the pursuit of peace does not come without a price tag. As Taiwan faces a hostile and unreasonable enemy, Taiwan really has no choice but to purchase modern weapons. According to the Taiwan Relations Act (TRA), the US must supply Taiwan with sufficient defensive arms to safeguard peace in the Taiwan Strait. However, Taiwan cannot entirely rely on the US. Therefore, we must shoulder the responsibility of self-defense.

The imbalance in military power between China and Taiwan is becoming serious. China's military budgets have been increasing massively each year. Yet Taiwan has made no major progress in strengthening its defensive capabilities. China's intention to deal with Taiwan through military means is also becoming increasingly apparent, as it becomes increasingly impatient and agitated. Still, many people in Taiwan remain incapable of recognizing who our enemies are. Not only have some of our countrymen lost any sense of alarm about Chinese ambitions regarding Taiwan, but a large number of Taiwanese have been boldly going west as a result of their deluded convictions that business should not mix with politics and that business globalization is the equivalent of investing in China. As a result, China is empowered while Taiwan is weakened. This has further enabled China to deal with Taiwan with greater military might. Once China becomes powerful, it becomes even more desperate about expanding outward. Taiwan then becomes the first target of Chinese hegemony. The mainstream US media have recently indicated that as the internal power struggle of the Chinese government becomes increasingly serious under the leadership of Central Military Commission Chairman Jiang Zemin , the military hardliners are unwilling to hand over control and therefore have been attempting to foment unrest over Taiwan and Hong Kong so as to counter the Hu Jintao and Wen Jiabao regime. Thus the cross-strait relationship has become especially unpredictable. Some of our countrymen seem to have concern about this lurking danger and continue to indulge in internal struggle and easy living.

Although the Taiwanese lack a sense of crisis, the US has voiced its own worries, repeatedly alerting Taiwan out of their goodwill. The recent US report on China's military strength should wake up the Taiwanese people. The report pointed out that after 20 years of continuous Chinese military expansion, the imbalance has gradually tipped toward China. China's various actions and statements also indicate that its willingness to use force is increasing. The report further disclosed that the annual military budget released by China for 2004 was around US$25 billion, yet the US estimated that the actual military expenditure of China in 2003 had been as high as US$70 billion, giving China the world's third-highest military budget, topped only by the US and Russia. This report also highlighted Taiwan's military vulnerabilities, which include the conservatism of military professionals, lack of training and deficient knowledge of technology. Even more important is the continuous decline of Taiwan's military budgets over the past decade, while both arms procurements and advanced troop training require increasing funding. Therefore, the report urged Taiwan to increase its military spending to counter the rapid modernization of Chinese naval, air and military powers.

President Chen Shui-bian has indicated that this year is a critical moment in the relationships between the US, China and Taiwan. We must strengthen Taiwan's military capability while not giving up on any chance to engage in dialogue and negotiation with China so as to strengthen regional peace. Chen's inauguration speech also emphasized his hope to establish mutual trust and to pursue peace. Strengthening military capability and seeking peace are not contradictory but facilitate each other. Otherwise, as China becomes increasingly unreasonable, if Taiwan cannot strengthen its military in time, we may face a crisis. Peace would then become nothing but empty talk. Only when Taiwan possesses a powerful self-defense capability can China's ambition be stopped. This is the only way to make China come out of its dream about taking over Taiwan by force and willingly engage in negotiations and exchanges from parallel and equal sovereign bases. This way, peace will become a reality. The arms to be purchased with the NT$610 billion are keys to filling the gaps in Taiwan's military strength and making China back off.

Therefore, we hope that the opposition parties can leave behind their differences with the ruling camp, as well as prejudice and ideology on their parts. Do not characterize the arms procurements as "exchanging favors with the US" or "paying protection fees to the US" or "demeaning our sovereignty." The opposition should support the special budgets for arms purchases. If the budget is turned down as a result of party rivalry, the conclusion reached by the US in the above-described reports -- that the biggest military challenge in Taiwan is the lack of internal consensus about increasing the military budgets -- will become a reality. While NT$610 billion may be a lot of money, it is a demonstration of our love for the land we live on. We should boldly take on the responsibility of protecting ourselves, so as to win respect of the world.

Your perspicacious editorial ("A dirty pot taunts a clean kettle," May 26, page 8) impressed me. In Taiwan, our party leaders, legislators and government officials declare all the time: "The people are the government's foreman," but what they frequently demonstrate is quite the opposite. That's why they are always condemned for being ineffective.

It seems to me that they have been given such great power that they become unethical in handling political affairs. Confucius even stated: "To govern means to rectify. If you were to lead the people with correctness, who would not be rectified?" . The politicians always proclaim that they want to reform, to make our country more democratic. However, what they have provided for us is a cluster of terrible negative examples. They are awfully fond of scrambling for power and profit. Before saying empty words, our political personages should rectify themselves. In this way, there will be room for two-way discussion on how to reform. Alice Tsai Taipei

What do the recent debate about Chinese Nationalist Party (KMT) reform and China's threats to Taiwan have in common? ("China is blind to Taiwanese people," May 30, page 8) Both are blind to the Taiwanese people.

Perhaps for the KMT's ultimate reform, it could declare, "We will defend Taiwan's freedom and democracy at any cost," since "at any cost" appears to be the catch phrase for Chinese intimidation of Taiwan. Although we don't know exactly what cost China is thinking about, we certainly know this cost does not have to be approved by the Chinese people.

The KMT has long dominated both military leadership and military personnel in Taiwan. Such a declaration would be credible and appreciated by Taiwanese. It would be consistent with the KMT's founding principles. It is also one thing they are in a position to do better than the Democratic Progressive Party (DPP).

If one asks what is the least likely cost the Chinese Communist Party (CCP) is willing to pay for attacking Taiwan? One would have to conclude that it is their monopoly power to rule China. "Retaking the mainland" is not an impossibility, if one thinks more carefully and has a little more imagination. What if Taiwan, (with a little help from the US) concentrates its fire power to eliminate the CCP ruling class if Taiwan is attacked? Is it not possible that a public uprising would ensue to demand democracy in China?

Who knows? The KMT may even return to the "mainland," at a very least becoming a legitimate party to compete for the votes of Chinese voters, this time as a liberator. The KMT might even win power again.

To either make China think twice about using force or to actually prepare for such a strategy requires the KMT's cooperation. This will absolutely benefit peace between Taiwan and China.

KMT reformers, set your sights a little higher, a little farther! But you can win no power without the trust of the people -- either in Taiwan or in China.