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DATE=9/11/1999 TYPE=CORRESPONDENT REPORT TITLE=CLINTON - JIANG (L WRAP) NUMBER=2-253732 BYLINE=DEBORAH TATE DATELINE=AUCKLAND CONTENT= VOICED AT: INTRO: U-S officials say U-S - Chinese ties are back on track following a meeting between President Clinton and his Chinese counterpart, Jiang Zemin, in New Zealand Saturday. Relations had fallen to a new low after the bombing of the Chinese embassy in Belgrade in May. Correspondent Deborah Tate has more from Auckland. Text: U-S National Security Advisor Sandy Berger described the talks - the first between the two presidents since the embassy bombing - as friendly and productive. // BERGER ACTUALITY // I would consider the relationship between our two countries back on track, with many challenges still facing us. // END ACT // Among those challenges: Taiwan and trade. China's threat to use force against Taiwan, which Beijing considers a renegade province, has been a source of concern to Washington. Mr. Jiang, speaking through a translator, indicated the position remains firm. // JIANG ACTUALITY // If there were to be a Taiwan independence, then we would not undertake to renounce the use of force. // END ACT // Mr. Jiang also repeated Beijing's opposition to U-S arms sales to Taiwan, according to National Security Advisor Berger. For his part, Mr. Clinton urged China to resolve differences with Taiwan through peaceful dialogue - warning Mr. Jiang there would be `grave consequences' if Beijing resorted to force against the island. The U-S President also said the United States would continue to abide by the Taiwan Relations Act, which allows for sales of defensive weapons to Taiwan in certain circumstances. At the same time, Mr. Clinton reiterated the U-S one- China policy, which recognizes China, not Taiwan, as a sovereign state. // CLINTON ACTUALITY // My message is that our policy has not and will not change. We favor one China. We favor a peaceful approach to working out the differences. We favor the cross-strait dialogue(between Taipei & Beijing). Our policy has not changed and it will not change. // END ACT // Mr. Clinton did acknowledge that a statement by Taiwan's president Lee Teng-hui earlier this year that Taiwan's relations with China were state-to-state in nature had made things more difficult for both Beijing and Washington. The U-S and Chinese presidents appeared more optimistic about trade - expressing hope that a deal could be reached for China's entry into the World Trade Organization. They instructed their trade representatives to meet as early as Sunday here in Auckland to resume trade talks that broke off after the embassy bombing. (signed) NEB/DAT/JO 11-Sep-1999 08:12 AM EDT (11-Sep-1999 1212 UTC) NNNN Source: Voice of America .