Taiwan urges China to open peace talks

President Chen Shui-bian avoided language and issues that have raised tensions in the past during the speech, and even extended Taiwan's best wishes as China prepares for the 2008 Summer Olympics in Beijing.

"Taiwan is pleased to witness the steady progress, reforms and peaceful emergence of China," he said from his podium under a sunny sky in front of the Presidential Office.

The address was highly anticipated because Chen had promised to make an "important announcement" that would improve relations with China, which has repeatedly threatened to attack the island.

Chen said that the two sides could use a 1992 meeting in Hong Kong between the rivals' envoys as a model for a new round of talks. The 1992 discussions led to a series of icebreaking meetings, which later broke off amid differences about Taiwan's political status.

The president didn't spell out what he meant by the proposal. He didn't say whether he just meant the two sides should use envoys who would talk in Hong Kong.