Taiwan ex-leader on fraud charges

30 June 2011 Last updated at 14:38 GMT Lee Teng-hui has denied the charges of embezzlement Former Taiwanese President Lee Teng-hui has been charged with embezzling $7.79m (?4.8m) of state funds.

Mr Lee is accused of taking the money from a secret diplomatic fund during his 1988-2000 presidency.

Prosecutors say the 88-year-old took money from the National Security Bureau fund to set up a private think tank, of which he became honorary president.

Mr Lee, who was the island's first directly elected leader, has denied taking the money from the bureau.

He is the second former Taiwanese president to be charged with fraud. His successor, Chen Shui-bian, is serving a 17-year sentence for bribery.

'Political ploy'

In a 23-page indictment, the prosecutors allege that Mr Lee and his right-hand man Liu Tai-ying stole public funds and laundered the money through a property fund.

They say that in 1994 Taiwan wanted to donate $10.5m to an unidentified country, as part of the island's policy of so-called cheque-book diplomacy.

The Foreign Ministry did not have enough money, so a loan was provided by the National Security Bureau.

Mr Lee and Mr Liu are accused of siphoning off almost $8m dollars when the loan was repaid.

The BBC's Chris Hogg in Shanghai says Mr Lee is a leading figure in the Taiwanese opposition, and is in favour of the island declaring formal independence from China.

Although Beijing and Taipei have had separate governments since the civil war ended in 1949, the Chinese government still regards Taiwan as a breakaway province.

The party Mr Lee helped form, the Taiwan Solidarity Union, said the indictment was a political ploy by the current President Ma Ying-jeou, who has fostered warmer ties with Beijing.

"This is incredible. President Ma is using this political tactic when his election campaign is at the lowest point," said the union's Huang Kun-hui.

But chief prosecutor Chen Hong-ta insisted there was evidence to prove Mr Lee's guilt.

"Without the president's approval and instruction, no-one could have used this fund, so the defendant's plea is just an excuse," he said.

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Taiwan marks China tourism first

28 June 2011 Last updated at 11:23 GMT By Cindy Sui BBC News, Taipei Tourists were offered traditional Taiwanese gifts as they arrived Some 300 independent tourists have arrived in Taiwan from China - the first time in decades mainland tourists have been allowed to roam on their own.

Tightly controlled tour groups have been permitted in recent years, but mainlanders are now allowed to visit independently.

Taiwanese officials say they expect a major boost in revenue from tourism.

The move is another sign of warming relations since the election of Taiwan President Ma Ying-jeou in 2008.

In many countries, it is normal for tourists to be able to travel around on their own. But decades of tensions between Taiwan and mainland China have only recently subsided.

China sees Taiwan as part of its territory and has threatened to use force if the island ever moved to declare formal independence.

Spying worries

The tourists were showered with media attention and handed gifts including Taiwanese pineapple cakes and bubble milk tea when they arrived.

Previously, the island had feared the tourists would overstay their visas, work illegally or spy on Taiwan. But such fears have given way to hopes of an economic boon from independent Chinese tourists.

Officials estimate the island could earn $300-600m (?188-375m) a year from the independent travellers.

But Beijing and Taipei are not embarking on this major move without caution. For now, only 500 such travellers are allowed to enter Taiwan each day and only those from the Chinese cities of Beijing, Shanghai and Xiamen.

Although Taiwan is concerned Chinese spies will now have easier access, the restrictions seem to be coming mostly from the Chinese side.

The tourists must first get permission from China's police before they can visit Taiwan.

That is because unlike the 4,000 Chinese tourists who come here on group tours each day, independent Chinese travellers can do practically anything they want once they get here - including linking up with Taiwan-based Chinese dissidents, Tibetan activists and members of the Falungong spiritual group, which is banned in China.

But many of the tourists who arrived on Tuesday said they simply wanted to see the island at their own pace, while others wanted to visit relatives.

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