Beijing has sent circulars to the provinces asking local authorities to prevent protests associated with the Diaoyu Islands from getting out of hand. In the struggle against alleged Japanese militarism, the Communist Party leadership has also decided to stick to moderate diplomatic action for fear that strong tactics might result in a closer Japan-United States alliance. The leadership has also said it will not co-operate with Taipei in putting pressure on Tokyo. An informed source said municipal authorities in Beijing would try to discourage activists and students from holding a demonstration next Wednesday, the anniversary of Japan's invasion of northeast China. 'If the activists cannot be held back, they will be sternly asked to hold their rally away from the city centre,' he said. The source said the authorities were afraid pro-democracy dissidents would take advantage of the protests to pursue their own ends. Citing the protests issued to Japanese diplomats and the cancellation of the visit to Japan of Vice-Premier Li Lanqing , another source said Beijing would 'incrementally' put stronger pressure on Tokyo. However, no 'solid steps' in the way of economic sanctions or military action were being contemplated, he said. Diplomatic sources in Beijing said the authorities were planning a series of tough commentaries in official papers on the 'irrefutable grounds' of Chinese sovereignty over the archipelago. These commentaries would cite figures showing should the crisis lead to a downturn in Sino-Japanese economic links, Japan would suffer more than China. The sources said, however, Beijing was not ready for tough tactics despite the fact that a handful of military officers had proposed holding war games in the area. It is understood Beijing is content to let Taipei play a big role in pressuring Tokyo, hoping this will worsen Taiwan-Japan relations. Moreover, Beijing is believed to think Taipei's failure to get concessions out of Tokyo will further expose the 'irrationality' of its refusal to begin talks with the Chinese leadership.