China to increase defence spending

Beijing - China announced yesterday it would increase its defence budget by 12

Beijing - China announced yesterday it would increase its defence budget by 12.7 per cent this year, as the People's Liberation Army (PLA) warned it would "resolutely smash" any move towards Taiwanese independence, writes Conor O'Clery. A number of high-ranking military officers attending the 11-day session of the National People's Congress (NPC) in Beijing also warned that China was ready to take military action and that settlement of the question of Taiwan could not be delayed indefinitely.

The Finance Minister, Mr Xiang Huaicheng, said Beijing was to step up the modernisation of its 2.5 million-strong armed forces. The total cost of defence spending this year will reach a record 120.5 billion yuan (£12 billion). Most of the increase will cover pay raises for soldiers, and a garrison for the former Portuguese colony of Macau, which reverted to China in December, Mr Xiang said.

The higher pay is aimed at turning the PLA into a more professional army as part of China's planned evolution into a regional power, analysts in Beijing said. But the provision of extra resources also heightens tension in the Taiwan Straits in the lead-up to presidential elections in Taiwan on March 18th. The Liberation Army yesterday launched a thinly-veiled attack on the most pro-independence candidate, Mr Chen Shui-bian, of the Democratic Progress ive Party. "It is especially worth paying attention to a prominent figure who in recent times has consistently advocated Taiwan independence," it said.

"One minute he is brazenly howling, `Long live Taiwan independence', while the next he is using beautiful and pleasant words to lie that he wants `goodwill, reconciliation, vigorous co-operation and everlasting peace' with the mainland. Under no circumstances should we be fooled by his sweet talk." Mr Chen reportedly declared "long live Taiwan independence" at a political rally last year.

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In an interview last month with The Irish Times he said he had been misquoted, though he stated that he believed "Taiwan is already an independent country".