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Chen avoids showdown with Beijing

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Charter will avoid Taiwan's sovereignty, he says, and referendum plan may die

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Bowing to pressure from Beijing and Washington, Chen Shui-bian stepped away from confrontation over constitutional reform yesterday after being sworn in for a second term as Taiwan's president.

He promised not to rule out any form of relations with the mainland, and while he vowed to pursue plans to adopt a new constitution in 2008, he said it would not cover the most contentious issues - national sovereignty and the island's status.

He also appeared willing to scrap a referendum on constitutional reform, a vote the mainland insists would be tantamount to a declaration of independence.

'I am fully aware consensus has yet to be reached on ... national sovereignty, territory and the subject of unification [or] independence,' he said after his swearing-in at a rain-soaked ceremony in front of Taiwan's Presidential Office.

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'Therefore, let me explicitly propose that these particular issues be excluded from the present constitutional re-engineering project.'

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