Most people are still puzzling about the implications of President Lee Deng-hui's controversial statement that Taiwan and the mainland are separate states.

The move came as a surprise, not only to the public, but also to President Lee's top officials, who were caught off guard by their leader's timing.

As the angry rhetoric from Beijing intensifies, opinion polls suggest strong domestic support for the president's sentiments.

About three out of four people on the island say they agree with the president's remarks on Taiwan's statehood.

Many people said his words simply reflected reality - that Taiwan had its own political system and talks between the two sides must be on an equal footing.

But some people were baffled by President Lee's timing.

This argument has been ignited in a sensitive period. Cross-strait talks are planned for October, when China's top official dedicated to relations with Taiwan, Wang Daohan, is due to visit the island.

Many people had hoped for a breakthrough, not least in such practical areas as shipping and telecommunications links, during Mr Wang's visit.

Now it is uncertain whether the visit will even take place.

Abstract goal

Taiwan's political leaders are trying hard to clarify their position as US envoys start emergency talks in both Beijing and Taipei.

Dr Su Chi, head of the mainland affairs council - the island's top body for dealing with cross-strait relations - told the BBC that it was a mistake to interpret President Lee's remarks as a complete abandonment of the One China policy.

But he added that Taiwan was rejecting the Chinese view that reduces Taipei to a mere provincial authority.

He said the One China policy was an abstract goal to be attained in the future after a peaceful process of reunification.

He added that Taiwan was not moving towards independence - something Beijing has repeatedly said it would meet with military action if necessary.

Private concerns

Opinion polls in Taiwan show that only a very small number of people supports symbolic steps in that direction such as a change of name from Republic of China to Republic of Taiwan.

But some people I asked privately did express concern about possible military action from the mainland as a result of the increase in tension.

Most reports of military preparations on the mainland close to the straits surfaced in Hong Kong newspapers but Taiwanese and mainland officials deny there is any substance to the stories.

Taiwan's own armed forces have not been put on increased alert but memories of the 1996 crisis, when China fired missiles into the straits as an angry warning to President Lee, are fresh here.