President Chen Shui-bian said Taiwan was willing to guarantee not to develop or use nuclear, biological or chemical weapons across the strait and urged Beijing to reciprocate.

The president also announced plans to cut the size of Taiwan's army by 100,000 before the end of 2008. He proposed a buffer zone in the strait to avoid unintended clashes between Chinese and Taiwanese warships and planes.

"Given humanitarian considerations and international codes, we think the use of such destructive weapons as nuclear bombs, biological and chemical weapons in the Taiwan Strait should be banned," Chen said after presiding over a national security meeting.

"We are willing to openly guarantee not to develop such large-scale destructive weapons. We also want to call on China not to develop nor use destructive weapons."

Taiwan's defense ministry says China, which is a nuclear-armed power, is targeting the island with at least 600 ballistic missiles and the number will rise to 800 by the end of 2006.

Tensions have grown since the re-election in March of Chen from the pro-independence Democratic Progressive Party.

China considers Taiwan part of its territory and has repeatedly threatened to take the island by force if it formally declares independence.

Taiwan Premier Yu Shyi-kun vowed in September to retaliate should China launch missile attacks against the island. Yu's remarks angered Beijing, which called them a "belligerent provocation" and a "clamor for war".

"In order to avoid misjudgement or unexpected clashes, we also recommend that the two sides set up a military buffer zone, an area which military aircraft and vessels from both sides should not be allowed to enter without notice in advance," Chen said.

Local newspapers say the Chinese air force has increased its flights over the strait in recent months and there are growing concerns that an unplanned clash could trigger all-out war.

Apparently with these concerns in mind, Chen called attention to the communications mechanism between the two Koreas and between India and Pakistan.

He also cited maritime agreements signed in 1972 by the United States and the then-Soviet Union and in 1998 between China and the United States.

"We ... suggest a military confidence-building mechanism be set up and therefore it would gradually become a 'Code in the Taiwan Strait'," the president proposed.

In a National Day speech last month, Chen said the two sides must reopen talks and draw up a code of conduct to prevent a military crisis in the strait, the 150-kilometer-wide (95-mile) waterway separating them.

The mainland said the offer of talks was a ploy to mask an independence agenda.

In a bid to ease the stand-off Chen also promised to cut the size of the army to 275,000 from 375,000 now. But he said this would have to be compensated for by an improvement in other defense capabilities.

The cabinet in June approved a special budget of 610.8 billion Taiwan dollars (18.2 billion US) to purchase weaponry from Washington over a 15-year period starting in 2005.

The arms package, which needs parliament's approval, includes eight diesel-powered submarines, a modified version of the Patriot anti-missile system and a fleet of anti-submarine aircraft.

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