In a gesture of goodwill towards Beijing, Taiwan yesterday approved direct commercial, transport and postal links between offshore islands and the mainland, ending a 51-year ban.
The Legislative Yuan said direct links would be allowed between Quemoy, Matsu and the Penghu Archipelago, and Xiamen and the port at Mawei, across the Taiwan Strait in Fujian province.
The Executive Yuan, or cabinet, must now work out detailed plans for opening the links, a process expected to take a few months.
Beijing has long pressed for direct trade and travel links, but Taiwan resisted, fearing the island's security could be threatened if its economy became too closely integrated with the mainland.
The offshore islands are underdeveloped and contain no major industry or infrastructure.
But Taiwan's business community, which has long pressured the Government to open direct links to save operating costs, welcomed the initiative. Most trade is now conducted via Hong Kong.
The passage of the largely symbolic bill came as the Democratic Progressive Party announced it would consider dropping its pro-independence stance to give president-elect Chen Shui-bian more room for manoeuvre in dealing with the mainland.