Bush was referring to a speech given at the Asia Society on June 10 when Powell said, “Taiwan has become a resilient economy, a vibrant democracy and a generous contributor to the international community.”

Speaking at a rare press briefing at AIT headquarters in Arlington, Virginia, Bush on his last day on the job expressed his optimism about U.S.-Taiwan relations. “I think I leave at a point when our relationship is on a very sound footing,” he said.

Bush, much liked and respected by Taiwan officials, expressed his thanks to the governments of both President Chen Shui-bian and former President Lee Tung-hui as well as many others during the almost five years of his tenure. “We’ve faced a lot of challenges together, but by working together we have met them and been able to move on to a new level,” he said.

Quitting AIT to become a senior fellow and director of the Center for Northeast Asian Policy Studies at the Brookings Institution in Washington, Bush gave his assessment of the immediate future for U.S-Taiwan relations.

“I’m sure that our two countries are going to face challenges in the future, but based on our common interests and good communication I’m sure we’ll be able to meet them just fine and that our relationship will continue to improve,” he continued.

One such challenge for both the U.S. and Taiwan, according to Bush, is mainland China’s continued military build up.

In a meeting in Washington on Thursday between Zhou Mingwei, deputy director of the mainland’s State Council for Taiwan Affairs, and U.S. Deputy Secretary of State Richard Armitage, the deputy secretary restated the importance of resolving cross-strait issues through peaceful means.

Also on Thursday, State Department spokesman Richard Boucher reiterated the U.S. position. “This administration’s made increasingly clear — that the deployment of missiles in Fujian province has a direct bearing on our thinking — we do believe that the only way to resolve this is peacefully, and missiles aren’t a way to resolve it peacefully,” he said.

It’s “hard to know what the purpose of this build up is, but it is one that we watch very carefully,” said Bush.

Again quoting Powell, Bush suggested that the mainland military build up “will demonstrate what kind of great power China wants to be.”

Bush praised the administration of President George W. Bush — no relation — for taking “a number of steps” to improve the U.S.-Taiwan relationship. Not least for restating a commitment to uphold the Taiwan Relations Act (TRA) and for stressing that the issue of Taiwan should be resolved peacefully and with the assent of the people of Taiwan.

The AIT chief also took the opportunity to spell out that U.S. commitment. “Pursuant to the Taiwan Relations Act we have certain legal obligations to Taiwan and it’s one that we might have to respond to,” he said.

Of all the lessons he has learned while serving as AIT chairman, the most important, according to Bush, is the need for clear and frank communication, “to ensure neither side surprises the other.”

In addition, according to Bush, clear communication between Taipei and Beijing is of vital importance. “Dialogue would be a way of building confidence between the two sides and avoiding misunderstandings,” he said.