Chen says the NUC will `cease'

"On that basis, all promises remain valid, including the `four noes,'" he said.

Chiou was referring to Chen's inauguration pledges not to pursue formal independence, provided that China had no intention of using force against Taiwan.

The US was expected to respond positively to Chen's action, seeing it as an acceptable compromise between outright abolition of the council and guidelines and the need for Chen to satisfy domestic political concerns, observers in Washington say.

The State Department began preparing a response within hours of Chen announcing his decision, but at press time the statement had not yet made the rounds of officials who must sign off such statements.

The department would accept Chen's wording in exchange for a "convincing, authoritative" restating of the "four noes," a source said.

The National Unification Council

* The council was set up in 1990 by then president Lee Teng-hui as Taiwan's top policymaking body on unification with China.

* The council has been dormant since President Chen Shui-bian took office in 2000.

The Guidelines for National Unification

* The guidelines were approved by the Cabinet on Feb. 23, 1991, with the goal of establishing a "democratic, free and equitably prosperous China."

* No timetable was set for unification.

* The guidelines' principles include: