That was basically the consensus that allowed a cross-strait dialogue to proceed from 1992 onward.

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Already, with no direct links yet allowed, cross-strait trade is growing by over 30% a year.

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China's measured response seemed to confirm growing expectations that 1998 could see some improvement in cross-strait ties.

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Others will allow a sharp expansion in direct cross-strait flights and improve co-operation in fighting crime and repatriating fugitives.

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Trade Minister Wu Yi has called for the expansion of cross-strait commerce.

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And without its long-planned gesture, progress on cross-strait ties would be harder.

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Which leaves China, and the possibility of restarting cross-strait talks.

ECONOMIST: Taiwan

"We believe the implementation of the pact will further promote exchanges and co-operation in cross-strait trade and help the economies develop together, " spokesman Yao Jian said in a statement.

BBC: Historic Taiwan-China trade deal takes effect