July 9

In an interview with the radio station Deutsche Welle, ROC President Lee Teng-hui defines cross-strait relations with the PRC as a "special state-to-state relationship."

July 11

A spokesperson for the Taiwan Affairs Offices of the Communist Party of China (CPC) Central Committee and the PRC State Council warns "Taiwanese independence forces" to "stop playing with fire."

July 12

ROC Mainland Affairs Council (MAC) chairman Su Chi states that from now on, Taiwan will not use such phrases as "One China" or "equal political entities."

For the first time, the US State Department comments on the issue, reiterating its "One China" policy.

July 15

Lee Teng-hui states that the existence of both the ROC and the PRC is a reality; the state-to-state relationship between the two sides has in reality existed for several decades.

The PRC publicly announces they possess neutron bomb technology.

July 16

US State Department spokesman James Rubin warns Beijing that any effort to resolve the Taiwan question other than by peaceful means will be viewed as a threat to the peace and security of the Asia-Pacific region.

July 18

US president Bill Clinton contacts PRC president Jiang Zemin by telephone, reaffirming America's long-standing "One China" policy.

July 19

ROC premier Vincent Siew reaffirms three policies toward cross-strait relations that remain unchanged: "encouraging constructive dialogue and friendly exchanges," "seeking a win-win strategy" and "striving for a future unification of China that is peaceful and democratic."

July 20

ROC president Lee states that only after a democratic unification will "One China" be possible.

Bill Clinton reaffirms America's "One China" policy. The United States will view with grave concern any effort that disrupts peaceful dialogue.

July 21

PRC Ministry of Foreign Affairs spokesman Zhang Qiyue warns that if there is no change in the "two states theory," it will inevitably impair cross-strait relations and impact the stability of the Taiwan Strait.

The US White House announces the cancellation of a military advisory group's visit to Taiwan.

The US House of Representatives approves the Taiwan Security Enhancement Act.

July 22

American Institute in Taiwan director Richard Bush arrives in Taiwan.

July 23

Lee Teng-hui tells Bush that he firmly opposes Taiwan independence.

Vincent Siew comments that the "state-to-state" formula is supported by a majority of Taiwan's citizens.

July 25

Upon leaving Taiwan, Richard Bush reaffirms the United States' "One China" policy and emphasizes the importance of dialogue.

US Secretary of State Madeleine Albright states that Taiwan's explanations of the new policy are unclear.

PRC Foreign Affairs Minister Tang Jiaxuan describes Lee Teng-hui as a "troublemaker" and warns the US not to "fan the flames of Taiwan independence"; he also refuses to rule out the use of military force.

July 26

Lee Teng-hui comments, "Peaceful unification is my long-term goal."

Vincent Siew remarks that a "special state-to-state relationship" clearly reflects the reality of cross-strait relations. Taiwan's policy toward mainland China will not change in any way.

July 27

US National Security Adviser Sandy Berger states that Taiwan should accept the structure of "One China." MAC chairman Su Chi expresses objections to Washington's delineation of "One China," saying the definition should be determined by both sides of the Taiwan Strait.

July 30

Koo Chen-fu, director of Taiwan's Straits Exchange Foundation (SEF), responding to demands from Wang Daohan, head of the PRC's Association for Relations Across the Taiwan Strait (ARATS), for a clarification, says that "One China" is a thing of the future, while right now the two sides are "equal governments that exist simultaneously." ARATS considers the SEF's clarification letter a "serious violation of the common consensus regarding the One China principle," ARATS sends it back.

The Pentagon informs Congress it is allowing US$150 million in military sales to Taiwan.

August 1

The MAC issues a statement explaining that the "state-to-state" formula is meant to pave the way for political negotiations with mainland China and for harmonious cross-strait relations, and it is beneficial to the stability of the Asia-Pacific region. The ROC's policy toward mainland China has not changed, nor will changes be made to the ROC constitution in this respect.

August 4

A PRC Taiwan Affairs Office spokesman responds to the MAC statement, claiming that Taiwan's "state-to-state" stance merely purports to be "special in nature" in order to cover up its separatist character, which is fundamentally "a two-state doctrine."

August 10

Lee states, "The more noise made over the 'state-to-state relationship,' the bigger it becomes; the more noise, the better. It will let everyone know the ROC's difficult position."

Su Chi says that the question of the status of both sides of the strait is better discussed sooner than later.

ARATS director Wang Daohan hints the precondition for his visit is that both sides return to the "One China" principle.

August 11

ROC Government Information Office director-general Cheng Chien-jen points out that the special state-to-state relationship has received the support of the mainstream American media.

August 13

Chen Yunlin of the CPC and PRC Taiwan Affairs Offices states that if Taiwan amends its constitution or laws to include the "two states theory," peaceful unification is impossible.

August 14

Lee Teng-hui comments that the principal purpose of the "state-to-state" formula is to establish equal negotiating status for the two sides in view of the expected visit by Wang Daohan.

August 15

State Council vice-premier Qian Qichen states that the PRC is still waiting for Koo Chen-fu to recant the "two states theory."

August 16

Lee Teng-hui reiterates that Taiwan's policy toward mainland China remains unchanged. He also supports US president Bill Clinton's cross-strait policy.

Su Chi states that if the PRC can accept the "special state-to-state relationship," political issues, such as the "three links," can be discussed.

August 17

ROC premier Vincent Siew states that the "special state-to-state" formula does not need to be rescinded.

August 18

Lee Teng-hui reiterates that from a variety of perspectives, including practical reality, history and the law, the ROC is a sovereign state. He proposes that cross-strait interactions should be based on equal positions, not the unequal positions of a central and a local government.

August 19

US State Department spokesman James Rubin confirms that PRC president Jiang Zemin requested US president Clinton to halt military sales to Taiwan, but that the US had not yet responded.

August 20

Rubin says that the US has not ruled out including Taiwan in the Theater Missile Defense system.