By Lucy Hornby BEIJING, Dec 31 (Reuters) - Chinese President Hu Jintao said on Wednesday he understood Taiwan's desire to take part in "international activities" but stressed he would not tolerate any move that suggested sovereign independence from the mainland. In a policy speech, Hu called for a pragmatic approach to the political relationship to ease concerns over military tension across the strait. "As long as the 'one China' principle is recognised by both sides.... we can discuss anything," Hu said. If Taiwan's opposition Democratic Progressive Party gives up "splittist activities" and "changes its attitude," it would elicit a "positive response," he said. China has claimed sovereignty over self-ruled Taiwan since the end of the Chinese civil war in 1949 and has vowed to bring the island under mainland rule, by force if necessary. Just this week, Taiwan said it would increase foreign aid next year, competing with China on largesse as the global economic crisis leave impoverished allies more desperate for help. With about 170 diplomatic allies to Taiwan's 23, China has continually blocked the island's bid to join the United Nations or affiliated organisations. But relations across the Taiwan Strait, in recent years one of the hottest flashpoints in Asia, have improved since China-friendly Taiwan President Ma Ying-jeou took office in May, prompting a goodwill gift to the island of two giant pandas just last week. "We understand the Taiwan people's feelings on participating in international activities, and we attach great importance to related issues on this," Hu told a gathering of the Communist Party elite at the Great Hall of the People. "...We can have realistic negotiations to reach a reasonable approach for the issue of Taiwan participating in the activities of international organisations on the premise of not causing one China, one Taiwan." Thursday marks the 30th anniversary of a major announcement by China that it would stop shelling the Taiwan-held island of Kinmen, or Quemoy, and that its policy towards Taiwan would shift from "liberation" through military invasion to "peaceful reunification". It is also the 30th anniversary of the United States switching diplomatic recognition from Taiwan to China, recognising "one China", though it remains Taiwan's biggest ally and arms supplier. (Additional reporting by Benjamin Kang Lim and Beijing newsroom; Editing by Nick Macfie and Valerie Lee)
The Chinese embassy is seen in Belgrade after it was hit by NATO missiles in this May 8, 1999 file photo. China and the United States should be kicking off 2009 ...