On May 12, Hu and Soong held a formal meeting in Beijing, during which the two sides exchanged frank and detailed views on the promotion and improvement of cross-Straits relations as well as development of party-to-party relations.

On May 11, Zeng Qinghong, member of the Standing Committee of the Political Bureau of the CPC Central Committee and member of the Secretariat of the CPC Central Committee, met the PFP delegation. The two parties agreed that they should join hands in bringing reconciliation, stability and peace so as to guarantee the general interests of the Chinese nation.

I. Resumption of talks between the two sides of the Taiwan Straits as soon as possible on the basis of the "1992 Consensus"

The consensus reached in 1992 should be respected – that both sides should accept the one-China principle and resume talks on an equal basis as soon as possible. Concrete measures should be taken to solve crucial issues of mutual concern on the basis of mutual respect and seeking common ground while reserving differences.

II. Firmly opposing “Taiwan independence” and jointly seeking peace and stability across the Straits.

The attempt of “Taiwan independence” not only hurts the feelings of people living on both sides of the Taiwan Straits and hinders cooperation between them but also seriously sabotages security and stability there and in the wider Asia-Pacific region.

The two sides firmly oppose the "rectification of Taiwan's name" and "constitutional changes through referendum." It is hoped that the Taiwan authorities earnestly honor the promise of "five noes" and live up to the commitment of not seeking "de jure Taiwan independence" through "constitutional" changes. So long as there is no possibility that Taiwan is moving toward “independence” military conflicts across the Straits can be effectively avoided.

III. Promoting the end of hostility and the buildup of a framework for peace across the Taiwan Straits.

The two sides should attain a formal ending of the state of hostility through consultation and negotiation in a bid to reach a peace accord and build a military mutual trust mechanism. They should join hands in safeguarding peace and security across the Taiwan Straits and securing peaceful and steady development of relations.

IV. Promoting economic and trade exchanges and establishing a stable cooperative mechanism across the Straits

Unity and cooperation across the Straits benefit both sides, separation harms both and exchanges lead to a win-win situation. Both sides are willing to promote overall economic and trade exchanges across the Straits on the basis of mutual benefit.

l         The CPC and PFP will promote the realization of two-way direct flights across the Taiwan Straits by 2006.

l         The CPC and PFP will promote direct trade and the removal of exchange restrictions to achieve normalization of trade relations across the Straits.

l         The two parties will promote talks and consultations concerning the establishment of long-term and stable mechanisms to facilitate trade across the Straits (e.g. a free trade zone) after talks across the Straits are resumed.

l         The two parties call for closer agricultural cooperation across the Straits and increasing sales of Taiwan farm produce in the mainland. The mainland promises to facilitate customs clearing, inspection and quarantine as well as exempt customs duties on some of Taiwan's farm products (fruits) while the Taiwan side should facilitate their direct transportation.

l         Both agreed to promote two-way direct investment by enterprises across the Straits, and "specific cooperation" in banking, insurance, securities, transportation and medical sectors.

l         The two parties will promote cross-Straits negotiations on how to avoid double taxation on business people.

l         Cross-Straits people-to-people exchanges should be expanded and procedures on the mainland side should be further simplified for Taiwanese compatriots coming to and leaving the mainland.

l         The mainland should apply the same rates of charges and fees on Taiwan students studying on the mainland as those on mainland students. Efforts are urged for the mainland to launch a scholarship for Taiwan students within the year.

l         The mainland side should encourage and promote the employment of Taiwan compatriots on the mainland.

V. Promoting negotiations on Taiwan’s participation in international activities.

The two parties will promote discussion of Taiwan's participation in international activities after the resumption of cross-Straits dialogue. Priority will be given to the discussion about Taiwan's participation in the activities of the World Health Organization. The two sides will join hands to create conditions to find a solution step by step.

VI. Promoting the establishment of a cross-Straits non-governmental forum of elites and service mechanisms for Taiwan business people.

The two parties have agreed to promote the establishment of a cross-Straits non-governmental forum of elites, to study various policy ideas, suggestions and proposals conducive to the development of relations. They also agreed to make joint efforts to establish and improve service mechanisms for Taiwan business people.

The two parties believe that the peaceful and stable development of the cross-Straits relationship conforms not only to the common interests of people on the mainland and Taiwan but also to the interests of the Asia-Pacific region and the world at large. Achievements in the talks of the two party leaders are conducive to enhancing mutual trust and will produce a positive impact on the improvement and development of relations. The two parties are willing to contribute to the wellbeing of compatriots across the Straits and to the overall development of the Chinese nation.

 (China.org.cn May 13, 2005)