CAPABILITIES: Despite a continuing Chinese military buildup, recent expenditures and arms acquisitions in Taiwan have strengthened its ability to defend itself
By Charles Snyder
China's military advantage in the Taiwan Strait continues to grow, but the Legislative Yuan's decision last year to boost defense spending will help right the balance, the Pentagon said in its annual review of China's military released in Washington on Monday.

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China will raise its heavily scrutinized defense spending by about a fifth this year, a top official said yesterday.

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ESCALATION: Just as Venezuela was expelling Colombian diplomats, Bogota claimed it had documents proving the FARC rebels were attempting to develop a 'dirty bomb'
Ecuador has severed diplomatic ties with Colombia, and Venezuela expelled all Colombian diplomats, in an escalating regional crisis sparked by a cross-border raid against Marxist rebels.

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By Mo Yan-chih
The Taipei City Government yesterday expressed concern over the construction of the Xinyi and Songshan MRT lines because of recent hikes in the price of steel and urged the central government to discuss solutions with the city government to prevent any further delays.

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US Secretary of State Condoleezza Rice called on Israel and the Palestinians yesterday to resume US-sponsored "peace talks" sus-pended over Israel's offensive in the Hamas-run Gaza Strip.

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