1. Adherence to the principle of one China is the basis and premise
          for peaceful reunification. China's sovereignty and territory must
          never be allowed to suffer split. We must firmly oppose any words or
          actions aimed at creating an "independent Taiwan" and the
          propositions "split the country and rule under separate regimes",
          "two Chinas over a certain period of time", etc., which are in
          contravention of the principle of one China.
         
          2. We do not challenge the development of non-governmental economic
          and cultural ties by Taiwan with other countries. Under the
          principle of one China and in accordance with the charters of the
          relevant international organizations, Taiwan has become a member of
          the Asian Development Bank, the Asia-Pacific Economic Cooperation
          forum and other international economic organizations in the name of
          "Chinese Taipei". However, we oppose Taiwan's activities in
          "expanding its living space internationally" which are aimed at
          creating "two Chinas" or "one China, one Taiwan". All patriotic
          compatriots in Taiwan and other people of insight understand that
          instead of solving the problems, such activities can only help the
          forces working for the "independence of Taiwan" undermine the
          process of peaceful reunification more unscrupulously. Only after
          the peaceful reunification is accomplished can the Taiwan
          compatriots and other Chinese people of all ethnic groups truly and
          fully share the dignity and honor attained by our great motherland
          internationally.
         
          3. It has been our consistent stand to hold negotiations with the
          Taiwan authorities on the peaceful reunification of the motherland.
          Representatives from the various political parties and mass
          organizations on both sides of the Taiwan Straits can be invited to
          participate in such talks. I said in my report at the Fourteenth
          National Congress of the Communist Party of China held in October
          1992, "On the premise that there is only one China, we are prepared
          to talk with the Taiwan authorities about any matter, including the
          form that official negotiations should take, a form that would be
          acceptable to both sides". By "on the premise that there is only one
          China, we are prepared to talk with the Taiwan authorities about any
          matter", we mean naturally that all matters of concern to the Taiwan
          authorities are included. We have proposed time and again that
          negotiations should be held on officially ending the state of
          hostility between the two sides and accomplishing peaceful
          reunification step by step. Here again I solemnly propose that such
          negotiations be held. I suggest that, as the first step,
          negotiations should be held and an agreement reached on officially
          ending the state of hostility between the two sides in accordance
          with the principle that there is only one China. On this basis, the
          two sides should undertake jointly to safeguard China's sovereignty
          and territorial integrity and map out plans for the future
          development of their relations. As regards the name, place and form
          of these political talks, a solution acceptable to both sides can
          certainly be found so long as consultations on an equal footing can
          be held at an early date.
         
          4. We should strive for the peaceful reunification of the motherland
          since Chinese should not fight fellow Chinese. Our not undertaking
          to give up the use of force is not directed against our compatriots
          in Taiwan but against the schemes of foreign forces to interfere
          with China's reunification and to bring about the "independence of
          Taiwan". We are fully confident that our compatriots in Taiwan, Hong
          Kong and Macao and those residing overseas would understand our
          principled position.
         
          5. In face of the development of the world economy in the
          twenty-first century, great efforts should be made to expand the
          economic exchanges and cooperation between the two sides of the
          Taiwan Straits so as to achieve prosperity on both sides to the
          benefit of the entire Chinese nation. We hold that political
          differences should not affect or interfere with the economic
          cooperation between the two sides. We shall continue to implement
          over a long period of time the policy of encouraging industrialists
          and businessmen from Taiwan to invest in the mainland and enforce
          the Law of the People's Republic of China for Protecting the
          Investment of the Compatriots of Taiwan. Whatever the circumstances
          may be, we shall safeguard the legitimate rights and interests of
          industrialists and businessmen from Taiwan. We should continue to
          expand contacts and exchanges between our compatriots on both sides
          so as to increase mutual understanding and trust. Since the direct
          links for postal, air and shipping services and trade between the
          two sides are the objective requirements for their economic
          development and contacts in various fields, and since they are in
          the interests of the people on both sides, it is absolutely
          necessary to adopt practical measures to speed up the establishment
          of such direct links. Efforts should be made to promote negotiations
          on certain specific issues between the two sides. We are in favor of
          conducting this kind of negotiations on the basis of reciprocity and
          mutual benefit and signing non-governmental agreements on the
          protection of the rights and interests of industrialists and
          businessmen from Taiwan.
         
          6. The splendid culture of five thousand years created by the sons
          and daughters of all ethnic groups of China has become ties keeping
          the entire Chinese people close at heart and constitutes an
          important basis for the peaceful reunification of the motherland.
          People on both sides of the Taiwan Straits should inherit and carry
          forward the fine traditions of the Chinese culture.
         
          7. The 21 million compatriots in Taiwan, whether born there or in
          other provinces, are all Chinese and our own flesh and blood. We
          should fully respect their life style and their wish to be the
          masters of our country and protect all their legitimate rights and
          interests. The relevant departments of our party and the government
          including the agencies stationed abroad should strengthen close ties
          with compatriots from Taiwan, listen to their views and demands, be
          concerned with and take into account their interests and make every
          effort to help them solve their problems. We hope that Taiwan Island
          enjoys social stability, economic growth and affluence. We also hope
          that all political parties in Taiwan will adopt a sensible,
          forward-looking and constructive attitude and promote the expansion
          of relations between the two sides. All parties and personages of
          all circles in Taiwan are welcome to exchange views with us on
          relations between the two sides and on peaceful reunification and
          are also welcome to pay a visit and tour places. All personages from
          various circles who have contributed to the reunification of China
          will go down in history for their deeds.
         
          8. Leaders of the Taiwan authorities are welcome to pay visits in
          appropriate capacities. We are also ready to accept invitations from
          the Taiwan side to visit Taiwan. We can discuss state affairs, or
          exchange ideas on certain questions first. Even a simple visit to
          the other side will be useful. The affairs of Chinese people should
          be handled by ourselves, something that does not take an
          international occasion to accomplish. Separated across the Straits,
          our people eagerly look forward to meeting each other. They should
          be able to exchange visits, instead of being kept from seeing each
          other all their lives.