BEIJING, Jan. 22 (Xinhua) -- Taiwan's Kuomintang Party (KMT) and People First Party (PFP) signed an alliance agreement on Monday to strengthen close cooperation of the opposition camp.

    KMT chairman Ma Ying-jeo and PFP chairman James Soong signed the agreement after a satellite video conference linking Soong, who is currently in the United States, with the parties in Taiwan.

    The KMT and PFP will develop a more stable "party alliance" on the basis of existing close cooperation, according to the agreement.

    The alliance also aims to integrate opposition parties, to stabilize Taiwan's political scene, to initiate peaceful relations across the Taiwan Strait and to safeguard the welfare of the people.

    The two parties agreed to work jointly in nominating the most promising candidates for the legislative elections to be held late this year, the agreement says.

    The two parties will make proposals for key topics of discussion and strive to work for the election of the leader of Taiwan authority in 2008, according to the agreement.

    The two parties will also enhance their influence in the "Legislative Yuan" through expanded cooperation.

    The agreement ushered in an era of KMT and PFP cooperation, said KMT chairman Ma Ying-jeo at the signing ceremony, pointing out that the two parties originally belonged to the same party and had similar beliefs.

    Now that they had signed the agreement, the KMT and PFP would step up cooperation in election nominations and in the policy area.

    PFP chairman James Soong said the agreement should not stir antagonism between the ruling party and the opposition parties nor should it benefit any party or individual, but to serve the hopes of Taiwan.

    The PFP was formed after the election of the leader of Taiwan authority in 2000, when KMT members who supported Soong in the election split to form their own party.

    Later, the two parties maintained cooperation in Taiwan's "Legislative Yuan". In 2004, the two parties jointly campaigned for the election of Taiwan authority's leader but failed in the election.

    The two parties have been negotiating the alliance agreement since the latter half of last year.