"We are also ready to hold talks on cross-Straits political and military issues and create conditions for ending the state of hostility and concluding a peace agreement between the two sides of the Taiwan Straits," he said.

Kennedy Wong, a Hong Kong lawyer and chairman of the Hong Kong Taiwan Youth Exchange Promotion Association, agreed that warming ties between the mainland and Taiwan had paved the way for cross-strait cooperation to tackle economic woes.

"The global financial crisis exposed the the weaknesses of Taiwan's over-reliance on the European countries, the United States and Japan," said Wong, who is here to attend the annual session of the 11th National Committee of Chinese People's Political Consultative Conference (CPPCC), the nation's top political advisory body.

"It is very hard for Taiwan to wade through the financial crisis on its own. The island has to turn to the vast market on the mainland to ensure future economic development," Wong said, urging for a comprehensive economic cooperation agreement between the sides.

Wong's voice was echoed by Sze Cheung-pang, vice chairman of the Committee for Liaison with Hong Kong, Macao, Taiwan and Overseas Chinese of the CPPCC National Committee.

"People in Taiwan can see that the Chinese mainland managed to retain a stable economy despite the financial crisis," he said.

"Taiwan is not strong enough to stand the financial storm alone. But the situation would be much more optimistic if the island join hands with the Chinese mainland. We should have full confidence in that," he said.

The mainland's policies to boost growth, expand domestic demand and ease credit supply would have positive effects on Taiwan-funded enterprises on the mainland, he said.

Both sides should strengthen financial cooperation by sharing financial information, setting up relevant agencies on the other side of the Straits, he said.

(Xinhua News Agency March 5, 2009)