The China Times said the Hsiung Feng missiles, which have a range of 1,000 kilometers (600 miles), were deployed across the island by the defense ministry's new missile command.

The missiles, which each cost some 100 million Taiwan dollars (3.13 million , were developed by the military-run Chungshan Institute of Science and Technology, the paper said.

The institute was also developing cruise missiles with a range of 2,000 kilometers for further deployment.

The China Times said President Chen Shui-bian had inspected the missile command and witnessed a mock launch of the cruise missiles.

The defense ministry declined to comment on the report.

Taiwan reportedly successfully test-fired its first cruise missile earlier this year which flew over 500 kilometers before hitting its target.

Last month the Pentagon released a report warning that China had deployed up to 730 ballistic missiles targeting the island.

It said Beijing's defense build-up could tip the military balance against Taiwan and pose a credible threat to other countries in the region.

In a bid to beef up Taiwan's defense capabilities, the cabinet has approved a revised arms deal worth some 15.5 billion dollars to buy weapons from the United States, its largest arms supplier.

The arms package over a 15-year period from 2005, pending approval by parliament, includes eight conventional submarines, a modified version of the Patriot anti-missile system and a fleet of anti-submarine aircraft.

The massive budget proposal has stirred heated debate on the island as critics said the spending could further provoke China and heighten cross-strait tensions.

China sees Taiwan as part of its territory awaiting reunification despite their split in 1949, and has repeatedly threatened to invade if the island declares formal independence.

All rights reserved. � 2005 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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