Taiwan authorities should seize the opportunity offered by the May 17 statement on cross-Straits relations as it contains new proposals for cross-Straits peace and stability, said an expert on the Taiwan issue Wednesday.

The statement, said Xu Shiquan, vice-president of the National Society of Taiwan Studies, did not say that the Beijing-based Association for Relations Across the Taiwan Straits (ARATS) and the Straits Exchange Foundation (STF) of Taiwan should resume dialogues, but proposed the two sides establish a mutual trust mechanism in the military field and conduct talks on the issue of international living space for Taiwan.

"These are the new things in the statement. Taiwan authorities should not be too insensitive to the statement. They should take the opportunity."

Despite the changes, Xu said that the Chinese government would never change its basic principles towards Taiwan such as "peaceful reunification, and one country, two systems."

"The Taiwan authorities are given two choices in the statement. If they accept the one-China principle, the two sides can start negotiations right away. If they insist on seeking the so-called 'Taiwan independence', the Chinese government will take resolute measures to oppose such action," Xu said.

"We sincerely hope our Taiwan policy will be soft. But the present situation doesn't allow us to be that optimistic as Chen Shui-bian clamors for implementing his so-called timetable of Taiwan independence".

Taiwan authorities had reportedly watered down the authority of the statement, said Zhu Weidong, assistant director of the Institute of Taiwan Studies of the Chinese Academy of Social Sciences, which was wrong as the statement was very important for cross-Straits relations.

Niu Jun, a Beijing University professor, said if the Taiwan authorities took the one-China principle, the two sides could learn from the past experience to hold talks on the issue of Taiwan's international living space, but the living space should be in line with the capacity of the Taiwan authorities.

The statement was issued by the Taiwan Work Office of the Central Committee of the Communist Party of China and the Taiwan Affairs Office of the State Council on Monday.