Lai made the comment at a forum held by the Overseas Compatriot Affairs Commission to discuss the topic, "A New Stage of Cross-strait Relations and Mainland China Policy," which focused on the five-day visit to Taiwan by Chen Yunlin, president of China's Association for Relations Across the Taiwan Straits (ARATS).

"I spoke with Chen during his visit to Taiwan and I told him that the people of Taiwan want peace and development," Lai said. "Chen will relay this message to China President Hu Jintao (胡錦濤)."

Lai framed Chen's visit as a historic breakthrough in cross-Taiwan Strait relations and an indication of how China views Taiwan status.

"The fact that Chen came to Taiwan shows that China does not deny our sovereignty," she said.

Prior to addressing the conference, Lai told the media that she had not heard any official reports that Beijing had ordered Chinese citizens not to visit Taiwan for the time being.

The United Evening News in its Sunday edition said that China's State Council had given instructions to immediately suspend all scheduled trips to Taiwan by ministerial-level officials for professional exchange purposes.

The report said that the order was given because China feared a reoccurrence of violent street protests similar to those that greeted Chen in Taiwan.

At yesterday's forum, Lai said that although security issues were highlighted during Chen's visit, there was no doubt that progress was achieved in the Taiwan-China dynamic.

"We cannot deny that with this second meeting between Chen and Taiwan's Straits Exchange Foundation (SEF) Chairman Chiang Pin-kung (江丙坤), the cross-strait relationship has moved from mutual denial to mutual non-denial," Lai said. "In addition, we are negotiating with each other on equal terms."

Chen was the highest-ranking Chinese official to have visited Taiwan since 1949. However, his five-day visit was marred by daily protests, several of which turned into bloody clashes between the police and opposition Democratic Progressive Party-mobilized protesters.

Lai said that the location of other Chiang-Chen meetings will be alternated between Beijing and Taipei.

"This is because we want to show the world that the two sides have moved from mutual denial to mutual acknowledgement, " she stressed.