In recent years, the Taiwan authorities have repeatedly declared that "democratization on the China mainland is the key to the reunification of China" and that "the real essence of the cross-straits issue is a contest between systems".
"After visiting Taiwanese companies along the Shanghai-Suzhou corridor, I'm convinced that the cross-strait issue will resolve in 10 years," said Andy Xie, an economist at Morgan Stanley in Hong Kong.
But the administration has not taken initiatives to increase the chances of a peaceful resolution of cross-strait issues.
In February, however, Mr Soong signed an accord with Mr Chen in which the two set out a consensus on cross-strait issues.
Mr. Lien's supporters say Mr. Chen miscalculated by pushing for a "defensive referendum" on cross-strait issues to be held along with the presidential poll.
Although Mr. Chen's words on cross-strait issues today were designed to avoid provocation, the entire speech carried a subtext that could not please leaders in Beijing.
It does not want a problem with Taiwan".Since his censure by Mr Bush, Mr Chen has tried to repair relations with America, sending drafts of important public documents on cross-strait issues to Washington in advance.
Mr. Chen had angered Beijing by holding a referendum on cross-strait issues in tandem with the presidential poll, a move the United States also criticized as an election ploy that might inflame tensions.
The secretary said that the sales gave Taiwan the "confidence" to engage China and that "hopefully, with that confidence, they can restart dialogue and discussions on cross-straits issues".
About the strongest words he could summon to condemn Mr Chen (though not by name) were that the Taiwan leader's decision to hold a referendum on cross-strait issues at the same time as the election had "threatened stability in the Taiwan Strait region".
"There is no change to our longstanding policy on cross-Strait issues.
