28 March 2004	Sunday	06 Safar 1425

TAIPEI, March 27: In Taiwan's biggest protest, half a million supporters of defeated presidential challenger Lien Chan jammed Taipei on Saturday to dispute his loss , and China said it would not tolerate turmoil on the island.

A sea of yellow raincoats filled the square around the office of President Chen Shui-bian as demonstrators defied a chilly drizzle to demand a recount in last Saturday's poll, which Mr Chen won by 30,000 votes out of more than 13 million cast.

Dressed in black for mourning and standing in front of a huge sign reading "Democracy is Dead", Mr Lien told the crowd he wanted a recount in the island's third ever direct presidential vote and an inquiry into the election-eve assassination attempt against Mr Chen that he has said cost him victory.

In defiant mood, President Chen vowed to step down at once if his rival could prove the failed assassination, in which a bullet gashed his abdomen, had been staged and challenged Mr Lien to find the world's best sniper to re-enact the shooting.

"If they can create the same kind of wound, A-Bian will immediately resign from the presidency," he told Mr Lien and his running mate, James Soong.

The re-elected president countered Mr Lien's demands, offering to agree to a recount of last Saturday's disputed vote if Lien Chan filed a lawsuit contesting the result.

The crisis has paralysed one of Asia's most vibrant economies and the stock market dipped 10 per cent last week.

Lien Chan taunted the president. "Our common demands are very simple: immediate recount. I want to ask Mr Chen Shui-bian: what are you afraid of? Stand up!".

Mr Chen was unruffled.

"There is no need for the other side to provide evidence," he told his first news conference since winning a second four-year term, agreeing to a recount by legal process.

President Chen can agree immediately because he would be the defendant in any such lawsuit, which can now be filed after the election commission officially declared the result on Friday.

But the president's voice shook with rage when he described his humiliation at suspicions he staged the mysterious shooting that many believe swung the closely fought election.

A Nationalist spokesman said the real victim was Mr Lien, who had lost the election.

President Chen and Vice President Annette Lu were slightly wounded by two bullets from a homemade gun as they campaigned in southern Tainan on the afternoon before the election.

No arrest has been made but police on Friday issued grainy security video of a balding middle-aged man in yellow jacket and blue trousers who left the scene in haste on a motorcycle.

The rivalry between Chen and Lien and the extent of support for the challenger threaten a prolonged crisis. Chen does not have a majority in parliament, making it difficult for his policies to be passed into law.

Beijing said on Friday it would not sit idly by if the protests spiralled out of control. China is anxious to prevent pro-independence activists who back President Chen's policy of greater sovereignty from using the turmoil to promote their cause.

Analysts say Beijing, which regards Mr Chen and his pro-independence ambitions with grave suspicion, clearly would have preferred a victory by Mr Lien, who espouses a more conciliatory policy towards the mainland.

Aware of the risk posed by an angry response from China, Mr Chen held out an olive branch to Mr Lien.

"On Monday, without any conditions, I am willing to meet Mr Lien," he said, adding the offer came in response to a request from the Nationalist Party leader for a meeting. -Reuters