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By JOHN LEICESTER, Associated Press Writer

BEIJING (AP) - China called today for the immediate cancellation of U.S. plans to sell air defense equipment to Taiwan, warning that such sales inflame already tense relations.

But at the same time, Chinese Foreign Ministry spokesman Zhu Bangzao urged Congress to grant Beijing permanent low-tariff trade rights. President Clinton submitted legislation to Congress on Wednesday to establish permanent normal trade relations with China.

Zhu expressed "deep concern" over the Pentagon's intention to sell 162 Hawk intercept guided missiles for $106 million and items needed to reconfigure Taiwan's TPS-43F air surveillance radar.

Noting that the planned sale comes at a "crucial moment" in relations between China and the United States and China and Taiwan, Zhu urged Washington to "fully recognize the seriousness of its arms sales to Taiwan and correct its error immediately and stop all weapons sales."

Recent Chinese threats of war against Taiwan ahead of the island's March 18 presidential election have heightened tensions. China also is angry at a U.S. congressional bill that would strengthen relations between the U.S. and Taiwan militaries.

China and Taiwan split amid civil war in 1949, but Beijing regards the island as part of its territory. Washington recognizes China's claim to Taiwan, but also is obliged by U.S. law to help the island defend itself.

"The U.S. side keeps on violating its commitments by selling a large amount of sophisticated weapons to Taiwan persistently," Zhu said. "It constitutes a severe encroachment on China's sovereignty and flagrant interference in China's internal affairs."

The Pentagon said the radar and missile sale will help modernize and upgrade Taiwanese air defenses but would not affect the basic military balance in the Asia-Pacific region.

While warning against the sale, Zhu called for Beijing to be granted normal trade rights without conditions.

The legislation Clinton submitted to Congress would scrap a contentious annual review of low-tariff trading rights for China. A U.S. promise of permanent trading privileges was part of a market-opening deal struck last year to allow Beijing to join the World Trade Organization, the Geneva-based group that makes world trade rules.

Zhu hinted that Beijing might not implement last year's deal if the trading rights are not granted permanently.

Normal trading rights "should be passed completely and in a 'once and for all' manner," Zhu said.

"If this issue cannot be steadily resolved it will be detrimental to the interests of U.S. enterprises in China and also not conducive to the U.S. competition with the other WTO members on the Chinese market."

Zhu said China hopes to discuss the trading rights with U.S. Commerce Secretary William Daley and Agriculture Secretary Dan Glickman when they visit.

U.S. Embassy spokesman Bill Palmer said both trips were planned for mid- to late April.: