The 85-page white paper outlined a list of security threats, including nuclear issues on the Korean peninsula and Japan's proposed constitutional changes but its main thrust was on strained relations with Taiwan.

The document, the fifth on national defence since 1995, described Taiwan relations as "grim" and made clear any attempt at independence would be harshly dealt with.

"Should the Taiwan authorities go so far as to make a reckless attempt that constitutes a major incident of Taiwan independence the Chinese people and armed forces will resolutely and thoroughly crush it at any cost," it said.

"The Taiwan authorities under (President) Chen Shui-bian have recklessly challenged the status quo ... and markedly escalated the Taiwan independence activities designed to split China."

The document said it was the "sacred responsibility" of the Chinese army to stop Taiwan independence forces from splitting the country.

It accused Chen and his Democratic Progressive Party of inciting anti-China sentiment and slammed the United States for selling arms to the island.

"(The United States) continues to increase, quantitatively and qualitatively, its arms sales to Taiwan, sending a wrong signal to the Taiwan authorities," it said.

"The US action does not serve a stable situation across the Taiwan Straits."

The policy paper came as China's legislature deliberated a proposed anti-secession law aimed at preventing Taiwan from declaring formal independence.

Beijing said hostilities could be ended if Taiwan, which it sees as part of its territory even though it broke with the mainland in 1949 after a civil war, accepted it was part of China and stopped its "separatist activities."

The document said defence expenditure increased to 211.7 billion yuan (25.6 billion dollars) in 2004 from 170.8 billion yuan in 2002 and 190.8 billion yuan in 2003.

Hong Kong-based military analyst Ma Ding-shing said the fact that China was openly claiming that its military expenditure has been growing at such a rate indicated it was keen to prove its military might to Taiwan.

"It could mean that it is putting pressure on Taiwan in reaction to its 600 billion Taiwan dollars military budget," Ma said.

In a move that angered China, Taiwan's cabinet approved in June a special budget of 610.8 billion Taiwan dollars (18.2 billion US) to purchase sophisticated weaponry from Washington over a 15-year period starting in 2005.

"Together with the secession law, it is using rhetoric and the military threat against Taiwan," he said.

The document also stressed that China harboured no ambition to expand its territory and reiterated it would reduce the People's Liberation Army by 200,000 troops to 2.3 million by the end of 2005.

"China will never go for expansion nor will it ever seek hegemony," it said.

Meanwhile, it repeated China's policy of not supporting, encouraging or assisting other countries to develop weapons of mass destruction and its opposition to their proliferation.

As well as Taiwan, the paper listed the impasse over North Korea's nuclear drive as a key major regional security worry.

"The foundation of the six-party talks is not solid enough as uncertain factors linger in the settlement of the nuclear issues on the Korean peninsula," it said of the stalled negotiations that also include the United States, Japan, South Korea and Russia.

It also sees Japan's proposed constitutional changes as a threat as they would allow the Japanese military to use force in international missions.

President Hu replaced retired Jiang Zemin as head of China's military in September.

US confirms it is posting military officers to Taiwan mission
Taipei, Taiwan (AFP) Dec 21, 2004
The United States will assign serving military officers to its de facto embassy in Taiwan for the first time since 1979 in a reversal of a longstanding policy, a spokeswoman said Tuesday.

The American Institute in Taiwan (AIT), which handles civil exchanges with the island in the absence of diplomatic ties, confirmed an article to be published Wednesday by Jane's Defense Weekly.

The AIT said it will use serving military officers -- instead of retired officers working as contractors -- to coordinate defence assistance to Taiwan.

"Historically, AIT has hired retired American military officers as contractors to coordinate defence assistance to Taiwan," said AIT spokeswoman Dana Smith.

"Non-uniformed, active-duty military and Department of Defense civilian personnel will now replace these contractors. They are being detailed to the American Institute in Taiwan as part of the normal rotation of personnel."

But Smith was swift to add that "our policy towards Taiwan has not changed."

"This is simply an effort to promote administrative efficiency in personnel matters, nothing more."

Still, the US plan sparked strong opposition from China saying it violated Sino-US agreements and hurt Washington-Beijing ties.

"Whatever excuse or method the US side uses to develop military relations with Taiwan violates the principles of the three Sino-US joint communiques, will encourage Taiwan separatist activities and harm peace and stability in the Taiwan region as well as China-US relations," China's foreign ministry spokesman Liu Jianchao told a regular briefing.

China also demanded the US side stop selling weapons to Taiwan and end contacts with its military, a demand previously rejected by Washington.

China claims Taiwan as part of its territory and vows to invade if the island, which has been ruled separately since 1949, formally declares independence. It already has 600 missiles pointed at the island.

Jane's Defense Weekly said that from the middle of next year active-duty military personnel will replace civilian contractors at the AIT.

US army Colonel Al Wilner, a former helicopter pilot, will be the first to arrive, said Jane's Taipei correspondent Wendell Minnick.

"Washington has become less concerned over any potential protest from Beijing amid growing unease over China's military ambitions in the Asia-Pacific region," the weekly said.

Washington has remained the leading arms supplier to Taiwan despite switching diplomatic recognition to China 25 years ago. Under the Taiwan Relations Act it is obliged to offer the island a means of self-defence if its security is threatened.

In October 2002 Congress amended the act to permit the direct assignment of US government personnel to AIT to promote administrative efficiency, the AIT said.

US government employees, including military personnel, are currently required to retire before they can be hired by the AIT.

US personnel assigned to the mission will not wear uniforms and will serve for three years compared with the two-year term offered to civilian contractors, Jane's says.

The Taiwanese government is asking parliament to approve a controversial 18 billion US dollar special budget to purchase six US-made Pac-3 anti-missile systems, eight conventional submarines and a fleet of submarine-hunting P-3C aircraft, over a 15-year period from 2005.

The budget, already approved by the cabinet, has met opposition from legislators.

Some critics say Taiwan cannot afford the massive spending while others say the new weaponry will not be delivered in time to help the island fend off any attack from China in coming years.

The government says the arms deal is necessary to strengthen the island's defenses against growing military threats from Beijing.

All rights reserved. � 2004 Agence France-Presse. Sections of the information displayed on this page (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence, you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the content of this section without the prior written consent of Agence France-Presse.

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