The Defence Department vowed that it would 'resort to anything' and had the ability to safeguard all citizens.

In Keelung, the administration is ready to impose food rationing and help civilians protect themselves by organising them into groups of firefighters, food distributors and medical and engineering teams.

Alarm systems were being tested throughout the city, a Keelung police officer reported.

Other big cities and outlying islands were also told to remain on alert, with warships guarding the coasts. All air-raid shelters were open.

On a barren headland near Keelung, a lighthouse keeper became flustered when he heard a missile crash like an 'exploding tyre' early yesterday morning. 'I have never heard anything like it,' Su Teh-tsun said.

One overriding fear was that one of the missiles may miss its designated sea zone and land on heavily populated Taiwan.

In Kaohsiung, the port close to the southern target zone of China's missiles, the atmosphere was apparently more peaceful.

While several warships were patrolling, cargo ships still came and left the piers as usual.

In Quemoy, Taiwan's defensive frontline island, just off the coast of Fujian, residents continued to stock up on rice and buy US dollars.

Yang Ya-hui, a housewife, said her family slept in an air raid shelter on Thursday night because of fears over the missile tests.

'I want to live longer,' she said.

In another preventive measure, a patrol boat sailed from Keelung to try to round up fishing boats straying too near to the test area.

Hu Hsin-hua, director of the Taiwan Fishery Association, said China's missile tests benefited nobody because the economic interests of the two sides were intertwined.

'This is no good for either side. Taiwanese boats hire many Chinese fishermen.' Taiwanese fishermen, despite admitting to fears over the missiles, said they had to take risks to earn a living.