China warned Taiwan it would "pay any price" to prevent the island from declaring independence. In Beijing's first official response to Taiwan President Chen Shui-bian's inauguration speech, an official from China's Taiwan Affairs Office told a media briefing that it was up to Chen to decide on the prospects for reconciliation, adding that Beijing would be "watching his actions". The official said Chen's inauguration address showed no sign the Taiwan leader had abandoned what he called his "agenda for independence".
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