-Caveat Lector-

Countries don't really care about apologies and such.
These are used as a framework for serious deal making in
the public sphere. You can bet that what's below is not
all of it.

China really wants the next Olympic Games. The US threatened
to scuttle that possibility. I would bet a nickel that China
was promised no interference by this administration.

Nurev
================================

Monday April 23 6:05 PM ET
Bush Turns Down Aegis Sale to Taiwan for Now

By Randall Mikkelsen

WASHINGTON (Reuters) - President Bush turned down for
now a decision on whether to sell Taiwan the
sophisticated Aegis naval defense system to Taiwan,
deciding on Monday to sell less advanced weapons, a
congressional source said.

The president would sell Kidd class naval destroyers
rather than Arleigh Burke class destroyers that could
be fitted with the Aegis system staunchly opposed by
China, a congressional aide said.

The aide said he learned of Bush's decision from the
administration. The president had decided to ``defer a
decision on the Aegis, not deny it,'' he said.

China has also opposed any Kidd sale, but is known to
be most concerned about the Aegis system, which it
fears could eventually put Taiwan under a U.S. missile
defense shield.

The decision effectively keeps the Aegis system as a
bargaining chip in U.S.-China relations, which have
been strained by a dispute over the collision of a
U.S. spy
plane and Chinese fighter jet. The United States will
also sell Taiwan 12 P-3 ``Orion'' anti-submarine
aircraft and help it to buy eight diesel submarines,
the source
said.

The White House declined immediate comment on the
source's disclosure.

White House spokesman Ari Fleischer had said earlier a
Taiwanese delegation would be notified on Tuesday
during a visit to the Pentagon.

Strains in the U.S.-China relationship, heightened by
a dispute over the recent collision of a U.S. spy
plane and a Chinese jet fighter, have given Taiwan's
annual
arms shopping list increased significance this year.

China views Taiwan as a breakaway province, and has
said any advanced weapons sales to Taiwan would have a
``devastating impact'' on U.S.-China relations.

Taiwan had asked for four $1 billion Arleigh Burke
Class destroyers equipped with Aegis defense systems
designed to detect and attack dozens of missiles,
aircraft
and ships at once.

Administration security officials had recommended that
Washington instead sell the older and
less-sophisticated Kidd Class destroyers to Taipei
instead of the
Arleigh Burkes, though China has also opposed sales of
the Kidd destroyers.

Also on Taiwan's shopping list were the
diesel-electric submarines of German or Dutch design
with U.S. technology, an advanced Patriot antimissile
defense known
as PAC-3, and the P-3 maritime search and
anti-submarine aircraft.

Experts say Bush may warn China that it must stop
stationing missiles along its coastline targeted
across the South China Sea at Taiwan.

China objects to the sale of these weapons under a
U.S. law that requires presidents to provide for
Taiwan's legitimate defensive needs even though
Washington
recognizes Beijing as the sole legitimate government
of China.

Chinese officials will not be told of Bush's decision
before it is announced to Taiwan, U.S. National
Security Council spokeswoman Mary Ellen Countryman
said.

Due to China's opposition, decisions on U.S. arms
sales to Taiwan are almost always politically
sensitive. But Bush's decision is even more touchy
following the April
1 collision of a U.S. Navy EP-3 reconnaissance plane
and a Chinese fighter off China.

The fighter crashed, killing the pilot. The crippled
four-engine U.S. plane landed at a Chinese base and
China held the 24-member crew for 11 days. Beijing has
refused to return the aircraft, a move that has
hardened the views of some members of the U.S.
Congress on accelerating the modernization of Taiwan's
military.

The United States said talks in Beijing over the
damaged $80 million EP-3 were productive but that
further discussions would be conducted on whether,
when and
how the plane might be returned.

Chinese Embassy spokesman Zhang Yuanyuan said last
week U.S.-China relations would be damaged if
Washington decided to sell any advanced weapons to
Taiwan. This did not just apply to the Arleigh Burkes,
but to other less sophisticated weaponry.

The disputes, coinciding with stepped-up U.S.
criticism of China's human rights record, have
contributed to a rocky start for Bush in his relations
with the Communist
giant.


=====

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