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Located to the southeast of the Chinese mainland opposite Fujian Province, the island province of Taiwan is flanked by the Pacific Ocean to the east and the Taiwan Straits to the west. Covering an area of 36,000 sq km, Taiwan includes Taiwan Island, the Penghu Islands and 80 other smaller neighboring islands and islets. Taiwan was called Yizhou or Liuqiu in ancient times. Records of Chinese people developing Taiwan in earliest times are found in many historical documents. Chinese governments ruled Taiwan for centuries. The social development of Taiwan continued according to Chinese cultural traditions even during its 50-year occupation by Japan. The Chinese government restored its administrative organs in Taiwan Province after victory in the War of Resistance Against Japan in 1945. On the eve of the founding of the PRC in 1949, the Kuomintang authorities retreated from the mainland to Taiwan. In 1950, the Korean War broke out, and the United States dispatched its Seventh Fleet to invade Taiwan and occupy the Taiwan Straits. In 1954, the government of the United States and the Taiwan authorities signed a ˇ°Mutual Defense Treaty,ˇ± bringing about the separation of Taiwan from the mainland.
The government of the PRC has made unremitting efforts to solve the Taiwan issue, and realize the reunification of the country. In February 1972, when President Richard M. Nixon of the United States visited China, the two sides issued the Shanghai Communique. On January 1, 1979, the United States established official diplomatic relations with China, formally recognizing the government of the PRC as the sole legitimate government of China and Taiwan as a part of China and, at the same time announcing the cessation of ˇ°diplomatic relationsˇ± with the Taiwan authorities, the annulment of the ˇ°Mutual Defense Treatyˇ± and the withdrawal of all its military personnel from Taiwan. In these historical conditions, the Chinese government, out of consideration for the interests and future of the whole nation, put forward the principle of ˇ°peaceful reunification of the country, and one country, two systemsˇ± in accordance with the principle of respecting history and reality, seeking truth from facts and taking into account the interests of both sides. The basic points of this basic principle and the relevant policies are:
China will do its best to achieve peaceful reunification, but will not commit itself to rule out the use of force; will actively promote people-to-people contacts and economic and cultural exchanges between the two sides of the Taiwan Straits, and start direct trade, postal, air and shipping services as soon as possible; achieve reunification through peaceful negotiations and, on the premise of the One-China Principle, any matter can be negotiated. After reunification, the policy of ˇ°one country, two systemsˇ± will be practiced, with the main body of China (China mainland) continuing with its socialist system, and Taiwan maintaining its capitalist system for a long period of time to come. After reunification, Taiwan will enjoy a high degree of autonomy, and the Central Government will not send troops or administrative personnel to be stationed in Taiwan. Resolution of the Taiwan issue is an internal affair of China, which should be achieved by the Chinese themselves, and there is no call for aid by foreign forces. The afore-mentioned principles and policies embody the basic stand and spirit of adhering to the One-China Principle, and fully respect Taiwan compatriots' wish to govern and administer Taiwan by themselves.
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