The comments by MAC Chairwoman Lai Shin-yuan came three days after the setting up of President Ma Ying-jeou’s government.

Ma took office on Tuesday, while vowing closer relations with China, which rejects moves by Taiwan toward formal independence.

“China can be a friend, but it can also be a threat depending on how the Chinese government deals with national and international issues,” Lai told reporters during a roundtable discussion.

Yet, she made clear that engaging in negotiations with China doesn’t compromise her view that “Taiwan is a sovereign state.”

Based on the ruling Kuomintang’s (KMT) definition of the “consensus of 1992” — one country, different interpretations — the former pro-independence legislator stressed that “it is important to put aside differences” and seize the opportunity of normalizing cross-strait relations.

Lai explained that the MAC would authorize the Strait Exchange Foundation (SEF) to immediately engage in negations with China after its reorganization is completed on May 26.

Although, the MAC is a Cabinet-level body responsible for coordinating and executing Taiwan’s policy on cross-strait affairs, the SEF is the semi-governmental agency in charge of establishing contacts and conducting negotiations with its Beijing-based counterpart, the Association for Relations Across the Taiwan Strait (ARATS).

“The opening of cross-strait dialogue would be an opportunity to institutionalize negotiations between the SEF and the ARATS,” she emphasized.

Lai anticipated that Taiwan and China would open negotiations in June and reach agreements for on the opening of cross-strait charter flights, the arrival of Chinese tourists and the launch of passenger and cargo flights in July.

“The July timetable is a realistic expectation,” she said, before calling the upcoming visit of KMT Chairman Wu Poh-hsiung a “second track” in the overall negotiation process.

“All necessary steps are (underway), negotiations will resume in June,” she added.

Also, Lai said that an amendment to the act governing the relations between the people of Taiwan and China would allow the public to convert Chinese renminbi (RMB) into New Taiwan dollars (NTD), if the revision is adopted in third lecture in July.

Although she explained that it was too early for Taipei and Beijing to exchange offices, with respect to the planned increase in cross-strait contacts, the chairwoman expressed her support for the reopening of the Chinese state media’s office on the island.

Further, Lai emphasized Taipei authorities would welcome China’s top Taiwan policy maker Chen Yun-lin in the event of his visit.

She noted that he would not rule out the possibility of visiting China under the principles of equality, dignity and need.

“Should the two sides of the Taiwan Strait enjoy positive interaction in the future, I would like to visit the mainland in my capacity as MAC head,” Lai added.