Mr Chen's referendum plan has angered Beijing

Mr Chen said it would ask voters whether Taiwan should increase its defences if China refused to redeploy hundreds of missiles pointed at Taiwan.

People would also be asked if they back opening negotiations with China.

The referendum plan has infuriated China, which fears it could lead Taiwan closer towards formal independence.

In a taped television address, Mr Chen said the first question would be: "If China does not remove missiles pointed at Taiwan, and does not renounce to use force against Taiwan, do you agree that the government should set up more anti-missile defences, in order to strengthen Taiwan's defensive ability."

Mr Chen said that the second question would be: "Do you agree that the government should open negotiations with China and establish a peaceful and stable framework for interaction, to seek consensus and well-being."

Mr Chen's decision to go ahead with the referendum, in addition to aggravating Beijing, has also alarmed some of his allies, including the United States.

US President George W Bush issued a measured warning to Mr Chen earlier this month when he said: "The comments and actions made by the leader of Taiwan indicate that he may be willing to make decisions unilaterally, to change the status quo, which we oppose".

Taiwan's law on referendums, which was passed by the country's legislature in November, prohibits the president from calling a vote unless the country faces the threat of foreign attack.

Mr Chen argued after the bill was passed that China's missiles trained on Taiwan constituted such a threat.

Critics have argued that Mr Chen is using the issue to help his chances of re-election in the upcoming presidential polls.

China and Taiwan have had different governments since the island became the base for nationalists who fled the mainland after the Communist victory in the civil war.

China sees the island as part of its territory, and has threatened to use force if Taiwan ever declares independence.