Taiwanese President Chen Shui-bian makes unusually strong pro-independence remarks

(AP) President Chen Shui-bian made unusually strong pro-independence remarks Sunday in a message apparently aimed at provoking rival China and shoring up his base.

"Taiwan should be independent," Chen said to cheers at a banquet marking the 25th anniversary of the Formosan Association for Public Affairs, a pro-independence group.

"Taiwan is a country whose sovereignty lies outside the People's Republic of China," he said, referring to the mainland Chinese government.

China and Taiwan split amid civil war in 1949 when the communists defeated the ruling Nationalist Party, which retreated to the island of Taiwan.

Both sides initially sought to rule both Taiwan and the mainland. But Taiwan's stance shifted after Chen's election in 2000, which marked the end of Nationalist rule. He has since taken steps to assert Taiwan's separate identity.

In the past year, Chen has substituted "Taiwan" for "China" at the post office and two large government-owned companies. He also removed late Nationalist leader Chiang Kai-shek's name from Taiwan's main international airport and ordered the dismantling of hundreds of Chiang statues at military bases throughout the island.

Chen's remarks came after Beijing said Sunday it will hike military spending by 17.8 percent in 2007. The Chinese military budget is largely oriented toward any possible conflicts with Taiwan and its increase has worried the island's leaders.

Hoping to beef up its defenses, Taiwan recently sought to buy 218 AMRAAM medium range air-to-air missiles and another 235 Maverick missiles from the U.S. for an estimated $421 million.

Beijing lashed out at the proposed arms sale Friday, calling it a "rude interference into China's internal affairs."

The Taiwanese leader's comments Sunday also appear aimed at galvanizing his supporters ahead of legislative elections in December and next year's presidential election, as his party recovers from a series of alleged corruption scandals.

Chen's wife and three presidential aides were indicted last November for allegedly skimming from a special presidential fund used to promote Taiwanese diplomatic activities abroad.

The scandal has prompted protests calling for Chen's resignation.