TAIPEI, March 21 (AFP) - Taiwan on Tuesday approved direct trade, transport and postal links between three frontline islands and mainland China in a major concession that lawmakers said could eventually be extended to the rest of Taiwan.
"It is a goodwill gesture from Taiwan," said Chen Ching-pao, a member of the Kuomintang (KMT) party which controls parliament but which lost weekend presidential elections.
Chen said full exchanges for all of Taiwan could be approved after a trial period involving the heavily fortified islands of Kinmen, Matsu and Penghu which form a major part of Taiwan's defences against China.
"It is difficult to have comprehensive links between Taiwan and the mainland right now," said Chen, a lawmaker from Kinmen which lies just 2.3 kilometers (a mile and a half) off the Chinese coast.
The trial period "should be a trouble-free start" to dismantling Taiwan's ban on direct contact, he added.
The move is a major peace overture to China which has repeatedly asked for the half-century ban to be repealed.
Until now, all passengers and cargo have officially had to travel through a third destination, usually Hong Kong, in a costly and time-consuming process.
However, many Taiwanese fishing boats sail directly to the mainland, laden with visitors and goods, in an unofficial direct exchange which is tolerated by both sides.
Chinese boats also take part in the trade, which delivers fresh food and supplies from the mainland back to the islands, home to a large military population.
Chen said duties would be imposed on goods traded between the two sides. It was also hoped that the move would increase tourist traffic to the region.
Although parts of the islands bristle with weaponry and most of the beaches are closed off to civilians, they are mostly very beautiful, with houses built in traditional style surrounded by green farming land.
Chen first proposed the bill in May 1998 but it was repeatedly knocked back by the KMT, which said it would only approve the amendment when Beijing began to show a "sincere and friendly" approach.
However, the surprise go-ahead came after the KMT suffered a humiliating loss in weekend elections, to pro-independence candidate Chen Shui-bian.
"The three frontier islands are authorised to operate direct transportation links with mainland China," said the revision to the existing law which governs the islands.
The amendment is to be sent to outgoing President Lee Teng-hui for promulgation within "several days," Chen said.
He also said a fund worth 30 billion Taiwan dollars (977 million US) would be set up to finance construction programs for the frontline islands.
Because of military restrictions and a law which until 1992 classified them as war zones, the islands' development has always lagged behind the rest of Taiwan.
All three presidential candidates promised during the campaign that they would push for direct links if elected.
It was feared that Chen's election would raise tensions with China even higher, but so far both sides appear to be handling the power handover calmly.
Beijing had repeatedly warned of war if Taiwan voters opted for the independence-minded candidate.:
