Taiwan's Chen offers olive branch

President Chen's DPP only controls 66 of the 225 legislative seats

By Willy Wo-Lap Lam
Senior China Analyst

(CNN) -- Taiwan President Chen Shui-bian is striking left and right in a last bid to win votes for his embattled Democratic Progressive Party (DPP).

With two days left before parliamentary and local-government elections, Chen is sending olive branches to the opposition parties, saying they would be included in a non-partisan National Stability Union cabinet to be set up after the polls.

In a briefing for reporters on Wednesday night, Chen said the future premier could also be drawn from an eminent "social personality" not affiliated with any party.

Earlier, Chen had suggested a post-election meeting with his main opponent, Chairman of the Kuomintang (KMT) Lien Chan, to talk about the formation of a National Stability Union administration.

However, Chen demurred when Lien offered to see him immediately to seek clarifications of the outlines of the non-partisan set-up.

Lien had earlier labeled Chen as a pro-independence fanatic who had no interest in either improving the economy or reducing tension with Beijing.

At the same time, the president has sought to mollify critics of his mainland policy -- as well as Beijing -- by agreeing to a gradual relaxation of restrictions on Taiwan businesses setting up branches in Chinese cities.

Mainland offices

Under conditions to be announced, Taiwan securities and insurance firms will be allowed to establish offices in the mainland.

However, Chen is also at pains to reassure the DPP's core supporters -- estimated at around 30% of the electorate -- that there will be no sell-out of the interests of the native-Taiwanese population despite improved economic links with the mainland.

While campaigning for a DPP candidate earlier this week, Chen surprised his own aides by openly casting aspersions on the "one China principle."

"Recognition of the 'one China' [principle] is tantamount to the destruction of the Republic of China -- tantamount to selling out Taiwan," Taipei media quoted Chen as saying.

Up till then, Chen had adopted a policy of deliberate ambiguity regarding the one China principle, which Beijing regarded as a litmus test of the DPP's sincerity in improving ties with the mainland.

Moreover, Chen's ally, former president Lee Teng-hui, is also active forming a cross-party, multi-ethnic advocacy group to promote nonpartisan governance after the election.

Analysts in Taipei and Beijing say if Lee's new party, the Taiwan Solidarity Union, manages to get as many as ten legislative seats after the polls, Beijing may come out with a strong warning against the resurgence of separatist sentiments on the island.