MILITARY TRUST WITH TAIWAN

    Stressing that the Taiwan issue concerned China's fundamental and core interests, the spokesman said current cross-Straits relations were "moving forward along a peaceful development track.

    "The two sides across the Taiwan Straits should work together and create conditions for the establishment of military trust mechanism," Hu said.

    The white paper said the situation across the Taiwan Straits has "taken a significantly positive turn."

    The paper attributed the improvement to the failed attempts of what it termed separatist forces seeking "Taiwan independence" and the progress made in cross-Straits consultations.

    Hu said China has limited deployment of military forces on the Taiwan Straits based on the nation's fundamental security interests.

    "When the [mainland's] military deployment is going to be readjusted will be decided in accordance with changes in the developing situation across the Taiwan Straits."

    He called for the two sides to step up contacts and exchanges on military issues "at an appropriate time" and talk about a military mechanism of mutual trust, in a bid to ease military concerns and stabilize cross-Straits relations.

    SOMBER, FRUGAL 60TH ANNIVERSARY PARADE

    As an important part of the celebrations of the 60th anniversary of the People's Republic of China, a military dress parade will be staged in the symbolic heart of Tian'anmen Square on Oct. 1, Col. Cai Huailie told the press conference.

    "The parade is aimed at showcasing military achievements over the three decades of reform and opening-up, particularly in the new century," Cai said.

    The all-services parade, which will feature a broader range of new weapons, will be kept low-cost.

    The late Chinese leader Mao Zedong inspected the nation's first military parade at its founding ceremony on Oct. 1, 1949. There were 10 annual parades through 1959, and the ceremony was suspended until Oct. 1, 1984, when the late Deng Xiaoping inspected an all-services parade that marked the debut of China's strategic missile corps.

    The most recent parade was held on the 50th anniversary of the People's Republic in 1999.

    Previous parades "wonderfully and deeply" impressed the Chinese people, showed the strengths of the nation and the military, and significantly enhanced national pride, Cai said.

    (Reporting by Bai Ruixue and Hou Lijun from the Information Office of the State Council in Beijing)