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Taiwan and China to increase economic cooperation

TAIPEI, Taiwan (AP) - Taiwan and China will discuss a partial free trade agreement and sign pacts this weekend to increase economic cooperation, a senior Taiwanese negotiator said Friday.

The statement by Straits Exchange Foundation Chairman Chiang Pin-kung comes amid efforts by President Ma Ying-jeou to turn the corner on his predecessor’s pro-independence policies and open a new era in relations with the mainland, from which Taiwan split during a civil war in 1949.

The semiofficial Straits Exchange Foundation is the Taiwanese body responsible for conducting talks with Beijing. Its Chinese counterpart is called the Association for Relations Across the Taiwan Strait.

In recent months Ma has made a partial free trade agreement with Beijing a top goal, saying it is necessary to help Taiwan maintain its competitive standing in the region.

The pact, known as the Economic Cooperation Framework Agreement, would permit the free flow of many goods, services and capital between the island and China. However, key items such as agricultural produce would be exempt, largely as a concession to Taiwanese farmers.

Chiang told reporters the two sides will discuss the pact during high-level talks Sunday in the eastern Chinese city of Nanjing.

"The president has instructed me to conduct a dialogue with Chinese representatives on the issue during the talks," he said.

He said the two sides will also sign an agreement changing the designation of the direct flights between them from charter to scheduled, and increase their frequency.

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