By Elaine Monaghan
WASHINGTON (Reuters) - Angered by blunt Chinese threats against Taiwan as it prepares to elect a new president, the United States called in Ambassador Li Zhao Xing on Thursday to urge Beijing to tone down its rhetoric.
"This morning Under Secretary (Thomas) Pickering called in China's Ambassador Li to discuss the importance of prudence and patience before and after the Taiwan election," State Department spokesman James Rubin said.
Pickering also discussed U.S. hopes for "positive steps to reduce tensions and foster dialogue" after the vote, a three-horse race including Chen Shui-bian, standard-bearer of the Democratic Progressive Party, which espouses independence.
Chinese Premier Zhu Rongji on Wednesday warned the people of Taiwan, which China regards as a maverick province, that the Communist mainland might not give them a second chance if they backed a pro-independence candidate.
He repeated Beijing's long-standing threat to use force to prevent Taiwan from breaking away.
Panic Selling In Taiwan
His words sparked panic selling of Taiwanese stocks on Thursday and forced Taipei to use a multibillion-dollar stabilization fund for the first time.
Fears about possible Chinese military action against Taiwan were fueled on Feb. 21 by a government document saying, for the first time, that Beijing might use force if Taiwan dragged its heels indefinitely on reunification.
The latest tension coincided with attempts by President Clinton to persuade Congress to approve permanent normal trade privileges with China -- a move that would open markets to U.S. goods and allow Washington to bring China into the World Trade Organization (WTO).
Asked whether the latest threat undermined congressional support for such a deal, Trade Representative Barshefsky told reporters: "I don't think any members are making up their mind on the basis of Beijing's pre-Taiwan election rhetoric."
She added: "I think members are waiting to see what happens post-election in Taiwan, and I think a number of members appreciate that there are varying reasons for this kind of rhetoric at this point in time, and are withholding judgement until they see what happens later."
Relations Were Rebounding
Sino-U.S. relations hit a low point last year after U.S. jets hit the Chinese embassy in Belgrade during NATO air raids on Yugoslavia and after allegations of nuclear espionage by China in the United States.
Washington also angered China with a highly critical report on human rights in that country and with its determination to press for condemnation of Beijing's record at next week's session of the U.N. Human Rights Commission in Geneva.
Rubin was careful with his comments which looked forward to hopes of resolving long-standing differences with Beijing. "In general we don't think statements of the kind that were mentioned are helpful," he said of Zhu's comments. "Instead we want to see statements that foster dialogue and make it more likely to resolve this issue peacefully," he added.
Chen Shui-bian has backed away from a previous hard-line stand on independence to avoid scaring voters but this has nothing to reduce Beijing's ire.
Rubin said the State Department was also in contact with authorities in Taiwan, whose Defense Minister Tang Fei has said the island neither sought war nor feared conflict.
The United States sells defensive arms to Taiwan under the 1979 Taiwan Relations Act but China has accused it of failing to honor a pledge to reduce the volume of sales.:
