Taiwan, China Clinch Deal on Direct Flights

MACAU (Reuters) - Taiwan and China reached a landmark deal on Saturday to allow non-stop charter flights over the Chinese New Year holidays, a move which could ease tensions and improve ties between the bitter political rivals.

The one-off deal will allow the first direct flights between the foes since 1949, and could mark a step toward ending a decades-old ban on direct air links.

"In a very short time, in a cordial atmosphere, we have come to an agreement," Pu Zhaozhou, executive director of China's Civil Aviation Association, told a joint news conference after talks in the southern Chinese territory of Macau.

However, while the flights will be non-stop, they will still have to go through Hong Kong or Macau airspace.

"The flights have to go through Hong Kong but they don't have to land," said Mike Lo, chairman of the Taipei Airlines Association.

Lo said the flights would be for Taiwan businessmen and their families in China.

Forty-eight flights will be allowed under the agreement, beginning on Jan. 29 and ending on Feb. 20, Pu said. He did not specify whether the first would take off from China or Taiwan.

Taiwan has banned direct air and shipping links with the mainland since the Nationalists lost the Chinese civil war to the communists in 1949 and fled to the island.

Travellers between Taiwan and the mainland must now fly via a third destination, usually Hong Kong or Macau on China's southern coast, adding four hours to what should be an hour-long flight.

China considers Taiwan a renegade province and has threatened to invade the self-governing, democratic island of 23 million people if it formally declares statehood.

Despite often highly charged political tensions, trade and investment across the narrow Taiwan Strait has boomed since the late 1980s, with about one million Taiwanese now living and working in China.

Taiwan businesspeople, who have poured up to $100 billion into China, have long clamored for direct flights. Millions of Chinese rush home for family reunions at the start of the Lunar New Year, which falls on Feb. 9 this year.

"This is a specific arrangement for New Year charter flights, but it is also a symbol of showing good will from both sides," said Andrew Yang, secretary-general of the Chinese Council of Advanced Policy Studies, a prominent private thinktank in Taipei.

"It is a win-win situation for both sides as China very much wants to win the hearts and minds of the Taiwanese and appear to the general public that it is doing whatever it can to resolve differences or disputes peacefully," Yang said.

Taiwan, under pressure from the United States to seek reconciliation with China, has been eager for a resumption of quasi-official dialogue, which has been frozen since 1999.

During the 2003 Lunar New Year holidays, charter flights between Shanghai and Taipei were commissioned to Taiwan airlines only and they had to fly empty to Shanghai to pick up passengers.

At the time, Taipei did not allow planes to fly directly between Taiwan and China, requiring them to make stops at an intermediate destination.

But some said the move, while positive, was just symbolic and would not necessarily lead to a more comprehensive improvement in ties.

"It can help to reduce tension to create a friendly atmosphere, but it is too premature to conclude that the resumption of talks can be realized," said George Tsai, an international relations fellow at National Chengchi University.

"I don't think Taiwan will go any further at this moment unless we can get some political benefit out of it."

China refused to allow similar flights last year, fearing it could help win re-election for Taiwan's pro-independence president, Chen Shui-bian.

The new agreement will allow flights from Beijing, Shanghai and Guangzhou on the mainland and Taipei and Kaohsiung in Taiwan, with each side allowed to select six airlines for the routes. (Additional reporting by Richard Dobson in Taipei)

Pu Zhaozhou (R), executive director of China's Civil Aviation Association, chats with Mike Lo, chairman of Taipei Airlines Association, during a news conference after their meeting in Macau, January 15, 2005. Taiwan and China reached an agreement on Saturday on landmark direct flights over the Chinese New Year holidays between Beijing, Shanghai and Guangzhou in mainland China, along with Taipei and Kaohsiung in Taiwan, a move which could ease tensions and improve ties between the bitter political rivals. (Bobby Yip/Reuters)

Taipei had better watchout for that air-assault/commando unit arriving aboard a commercial flight...

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