Chen made the appeal during a meeting with Grant D. Aldonas, U.S. under secretary of commerce for international trade, who arrived in Taipei earlier in the day for a two-day visit.

Noting that economic security is critical to national security and regional stability, Chen said signing free trade pacts among the three major economies could help check capital flow to China, which is fast emerging as a “magnet” to investors looking for investment opportunities around the world.

“It is my firm belief that forging a Taipei-Washington-Tokyo free trade alliance would keep the Asia-Pacific region from tilting towards the Chinese mainland economically and therefore help sustain regional economic security and stability,” Chen told his guest.

Touching on Taiwan-U.S. relations, Chen said Aldonas’ visit symbolizes a significant step forward in bilateral ties as Aldonas is the highest-ranking Bush administration official to visit Taiwan so far.

Chen said both Taiwan and the United States uphold such universal values as freedom, democracy and human rights and have common expectations for peace, stability and security in the Asia-Pacific region.

“Moreover, we share common interests in increased commercial exchanges and economic cooperation,” Chen said. “As a result, substantive relations between our two countries have grown steadily.”

Chen said President George W. Bush’s decision to sell a robust package of weapons to Taiwan last year would not only upgrade the island’s defense capabilities but would also help maintain the balance of military power between the two sides of the Taiwan Strait. “We are grateful for U.S. assistance,” he added.

In addition, Chen expressed his gratitude for the formation of the Congressional Taiwan Caucus Wednesday by 85 members of the U.S. House of Representatives to back Taiwan’s national cause.

“Some American friends have told me in private that the number of pro-Taiwan U.S. congressional members is much more than what I have imagined. Therefore, I believe that our relations and cooperation will continue to grow and improve.”

Chen further said Taiwan appreciates all the U.S. assistance in its 12-year struggle for a seat in the World Trade Organization (WTO). “The WTO accession has opened ‘window of opportunities’ for Taiwan,” he noted.

For his part, Aldonas expressed his admiration for President Chen’s leadership in Taiwan’s negotiations for its WTO membership.

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Aldonas said he shares Chen’s view on the importance of safeguarding regional economic security. He said Taiwan’s WTO accession would certainly contribute to boosting regional peace, stability, security and cooperation.

With its economic clout and democratic achievements, Aldonas said, Taiwan would be able to play a constructive role in the WTO.

Aldonas also asked Chen about Taiwan’s economic development strategy and prospects.

In response, Chen said “developing Taiwan with a global vision” is his administration’s highest development strategy in the new century.

Under this strategy, Chen said, his administration is giving priority to “investment, economic development and Taiwan’s well-being.”

In the meantime, Chen said, Taiwan will continue promoting economic liberalization and globalization.

“Besides developing Taiwan into a research, development and innovation center and high value-added manufacturing center, we’ll also make Taiwan a resourcing and management center for multinational corporations,” Chen explained.

More important, Chen said, he is planning a sweeping government restructuring in order to upgrade administrative efficiency and overall national competitiveness.