Bush tells Taiwan to cancel plans to hold referendum

US: President George W

US: President George W. Bush bluntly told Taiwan yesterday to drop its plans to hold a referendum next year as it would be interpreted as a unilateral move towards independence.

The message to President Chen Shui-bian had added force as Mr Bush spoke with Chinese premier Mr Wen Jiabao at his side. It came after the pomp of a red carpet welcome to the White House complete with 19-gun salute.

Profiting from much-improved Sino-US relations, Mr Wen's first visit to Washington had been expected to focus on problems surrounding the US's $100 billion annual trade deficit with China, as well as co-operation in the war against Islamist militants.

Instead, it was Taiwan and North Korea's nuclear weapons programme that dominated talks. However, the two leaders did agree to have their officials hold talks on China's currency next month. US manufacturers blame China for keeping the yuan weak, helping its exporters and costing America jobs.

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Mr Bush said they spent much time discussing China's efforts to host a second round of six-party talks on Pyongyang's nuclear weapons.

A US official, reacting to the latest demand by North Korea, expressed concern that the process had failed.

China's role in keeping North Korea engaged while the US is focused on Iraq remains paramount for the White House in an election year.

Taiwan's supporters in the US have accused the Bush administration of sacrificing its commitment to global democracy and its close relationship with a democratic Taiwan to appease China.

"We oppose any unilateral decision by either China or Taiwan to change the status quo," Mr Bush told reporters. "And the comments and actions made by the leader of Taiwan indicate that he may be willing to make decisions unilaterally to change the status quo, which we oppose."

Taiwan's President Chen has infuriated mainland China and rattled the Bush administration by declaring his intention to hold a referendum on March 20th. It would call on China to withdraw missiles aimed at the island and renounce the use of force. Mr Chen is also seeking re-election on the same day.

Mr Wen was more forceful. He accused the Taiwanese president of using democracy as an excuse to call for a so-called "defensive" referendum to split the island from China.