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US intelligence on alert: news report

The Washington Times is reporting that US intelligence agencies are on alert for unexpected Chinese military activities this weekend.

While there is no hint about the possible nature of such activities, they could be timed to coincide with the visit of White House National Security Adviser Thomas Donilon to Beijing.

According to the Washington Times, they could be part of the Chinese response to the US$5.8 billion arms package for Taiwan that was announced by the US last month.

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PEACE PACT POLEMIC: AIT warned Ma on peace pact: cable

A leaked US cable shows that American Institute in Taiwan (AIT) Chairman Raymond Burghardt warned President Ma Ying-jeou (馬英九) in 2007 that cross-strait dialogue on various issues, including a peace agreement, could be at the expense of US arms sales to Taiwan.

Following heated debate on whether to start political talks with China that could potentially lead to unification if Ma is re-elected in January after he proposed the idea on Monday, Ma said on Thursday that a pact would not be signed unless strict prerequisites were met.

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Newsflash

The Ministry of Finance yesterday said the breakdown of cross-strait negotiations on a tax pact on Monday was mainly the result of a dispute over levying income tax on China-based Taiwanese businesspeople according to where they reside or where they get paid.

The ministry said the breakdown was not related to sovereignty, apparently contradicting comments a day earlier by Premier Wu Den-yih (吳敦義), who said the deal was delayed because the treaty would have treated Taiwan the same as Hong Kong.