Taiwan's government on Monday dismissed reports it would cancel a planned huge US arms deal after Washington refused to let President Chen Shui-bian make a stopover in the continental United States en route to Latin America.

"The defense ministry cannot possibly change the policy carelessly," Deputy Defense Minister Chu Kai-sheng said in response to questions in parliament.

"The report is just speculation," he said, referring to a China Times report that an angry Chen is likely to scrap the arms procurement plan. The paper said Chen may also tighten controls on civilian exchanges with China.

Deputy Foreign Minister Kao Ying-mao also denied the report.

Chen last week dropped plans to transit in the United States after Washington, for fear of upsetting Beijing, said he could only make a refueling stop in Alaska rather than in New York or San Francisco as he requested.

Chen instead made transit stops in Abu Dhabi and Amsterdam en route to Paraguay and Costa Rica, two of only 25 nations that recognize Taiwan diplomatically.

China opposes any overseas visits by top officials from Taiwan, which it regards as part of its territory awaiting reunification — by force if necessary.

Politicians from Chen's Democratic Progressive Party blasted Washington for apparently bowing to Beijing's demands and defended Chen's decision to bypass the United States altogether.

Chen had previously been allowed unofficial visits to New York, Miami, Anchorage, Seattle, Houston and Los Angeles.

Taiwan's opposition leader Ma Ying-jeou has called on Chen to make a refueling stop in Alaska on his way back home, as offered by the United States.

Increasingly concerned about China's rapid military expansion, Washington has repeatedly voiced complaints to Taipei about parliament's blocking of the controversial arms package.

The latest reduced package calls for the purchase of eight conventional submarines and 12 P-3C submarine-hunting aircraft and six PAC-3 Patriot anti-missile systems for around 340 billion Taiwan dollars (10.8 billion US).

The United States remains the leading arms supplier to Taiwan despite its switching of diplomatic recognition to Beijing in 1979.

Source: Agence France-Presse