In a report by Xinhua (the New China News Agency), secretary-general of the Chinese Olympic Committee, Wei Jizhong, quoted the president of the Olympic Council of Asia (OCA), Sheik Fahad Al-ahmad, as saying the Taiwan Vice-Premier was not invited to next month's Games.

It quoted the OCA chief as saying that he could not understand why the Japanese Government was allowing Mr Hsu to attend the Games. The chief reportedly said he had not invited Mr Hsu 'in accordance with the national interest of China, with the principles of the Olympic movement' and to avoid a dilemma for the OCA.

On Monday, Taiwan President Lee Teng-hui dropped his planned visit to the Games in the face of intense opposition from Beijing.

Last week, the OCA bowed to pressure from Beijing and effectively nullified its invitation to Mr Lee by stating that 'political figures' would not be invited.

Up until now, Japanese officials have said Tokyo would honour the identification card issued to Mr Hsu, who was invited to attend the Games as a 'dignitary' by the CTOC.

Mr Tseng said Mr Hsu was invited by the CTOC as convener of a government committee to support Taiwan's campaign to hold the 2002 Asian Games, not as vice-premier.

Mr Tseng, who is also the whip of the ruling Kuomintang's bloc in the Legislative Yuan, said Mr Hsu would meet the representatives of all member countries of the Olympic Committee of Asia and would examine the process of preparation for the Asian Games in Hiroshima.

'The Japanese Government will be guilty of a breach of faith and will violate its agreement to allow free entry and exit for the delegations of member countries if it refuses entry to Hsu,' Mr Tseng said.

He added the Legislative Yuan had called on Mr Hsu to attend. 'If he doesn't go to Hiroshima, he shouldn't try to come back to the Legislative Yuan,' Mr Tseng said.

Neither the Japanese Government nor the Japan Olympic Committee had the power to cancel Mr Hsu's identification card, as Tokyo agreed in 1986 to guarantee free entry and exit for all members of delegations, he said.

'Japan will lose its character as a nation if it bows to Beijing's pressure again.' But Mr Tseng said that 'no matter what happens, we will respect the Olympic principle of separating politics from sports and will not boycott the Games'.

The controversy over the Asian Games, combined with Beijing's blocking of discussions on a seat for Taiwan in the United Nations, could spark a new low in cross-strait relations.

Taiwan premier Lien Chan told the Legislative Yuan yesterday that given Beijing's 'extremely rigid' and 'zero-sum game' approach to cross-strait relations, 'it will be impossible to generate a favourable spiral of mutual interaction'.