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Taiwan, China set for landmark talks

MACAU, Jan 15 (Reuters) Taiwan and China were due to hold talks later on Saturday on allowing landmark direct flights over the Chinese New Year holidays, a move which could ease tensions and improve ties between the bitter political rivals.

Taiwan said on Friday it was optimistic about striking a deal, which could allow the first one-off, non-stop flights between the two foes since 1949 and possibly mark a step towards ending the ban on direct air links.

"Both sides have the willingness and consensus to push through the charter flights," Chiu Tai-san, vice chairman of Taiwan's Mainland Affairs Council, told a news conference.

Chiu said the two sides were in agreement on a broad plan but still had to work out technical details, which were believed to include sensitive issues such as flight details, travel documents and air control agreements.

Saturday's Taipei newspapers quoted Transportation Minister Lin Ling-san as saying Taiwan would have no objections to Chinese planes bearing the mainland's flag landing in Taiwan.

Aviation executives authorised by the council, which formulates Taiwan policy towards China, were expected to begin talks with their Chinese counterparts at 2 p.m. (0600 GMT) in the southern Chinese territory of Macau to iron out details of the proposed flights in February. The Lunar New Year falls on Feb. 9.

Taiwan has banned direct transport links with the Chinese mainland since the Nationalists lost a civil war to the communists in 1949 and fled to the island.

China considers Taiwan a renegade province and has threatened to invade the self-governing, democratic island if it declares statehood.

Despite often high political tensions, trade and investment across the narrow Taiwan Strait has boomed since the late 1980s. Taiwan investors have poured up to $100 billion into China and one million Taiwan nationals live there.

Taiwan businesspeople have long clamoured for direct flights. They must now fly via a third destination, usually Hong Kong or Macau, adding four hours to what should be an hour-long flight.

Hong Kong's South China Morning Post said on Saturday that Taiwan may still insist that any charter flights go through Hong Kong or Macau airspace, contrary to Beijing's wishes.

China proposed on Jan. 12 that the direct charter flights be between the Chinese cities of Beijing, Shanghai, Guangzhou and Xiamen and the Taiwan cities of Taipei, Kaohsiung and Taichung.

During the 2003 Lunar New Year holidays, charter flights between Shanghai and Taipei were commissioned to Taiwan airlines only and they had to fly empty to Shanghai to pick up passengers.

China refused to allow similar flights last year, fearing the move could help win re-election for Taiwan's pro-independence president, Chen Shui-bian.

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