Taipei  - Taiwan on Wednesday welcomed Chinese President Hu Jintao's pledge to expand Beijing-Taipei ties, calling it a good sign for cross-strait exchanges in 2009.

The Defence Ministry welcomed Hu's call to discuss a military mutual-trust mechanism, saying it would foster regional peace.

"In cross-strait ties, the sequence is to handle economic issues first, followed by political issues and finally military issues," Defence Ministry spokeswoman Chih Yu-lan told reporters.

"If the two sides can set up a military mutual-trust mechanism, it will not only be welcomed by Taiwan people, but will also be good for the region," she said.

Yin Nai-ping, a professor of finance from National Chengchih University, welcomed Hu's remark that China is willing to sign an economic cooperation pact with Taiwan to help boost the island's competitiveness.

"This is what we have been waiting for. It will only help improve our economy, but will also allow Taiwan to join international economic organizations and play a larger role on the world stage, and help buffer the impact of global financial crisis on Taiwan," he said.

Professor Peng Huai-chen from the Tunghai University Hu's remark shows that China is in a hurry to achieve Taiwan-China unification.

"Hu's term will not long, so he, like other Chinese leaders, shoulders the burden of solving the Taiwan issue. But we should interpret his remarks in a positive way," he said.

"China should try to understand the feelings of Taiwan people, and make contacts with the opposition Democratic Progressive Party (DPP) with pre-conditions. It is easier to make contacts by setting pre-conditions," he said.

On Wednesday morning, China held an event to mark the 30th anniversary of its "Message to Compatriots in Taiwan," which called for peace talks and the opening sea, air and postal links, nicknamed Three Links.

The three links were finally opened on December 15, but Taiwan still refuses to reunify with China.

Hu Jintao said that under the "one-China" principle, Beijing is willing to discuss launching a military mutual-trust mechanism and an economic cooperation mechanism with Taipei.

Beijing is also willing to allow Taiwan to join non-official and economic international organizations, he said.

Hu also made peace overtures to the pro-independence DPP party.

"If the DPP changes it stance on seeking Taiwan independence and splitting China, we are willing to make a positive response," he said.

China and Taiwan split at the end of the civil war in 1949, when Chinese Nationalist leader Chiang Kai-shek fled to Taiwan to set up his government-in-exile.

Since his inauguration on May 20, President Ma Ying-jeou from the China-friendly Chinese Nationalist Party has promoted cross-strait exchanges while asserting Taiwan is a sovereign country and its future must be decided by the 23 million Taiwan people. (dpa)