Taiwan's delicate relationship with the US is back under the spotlight thanks to a row over national carrier China Airlines' need for new planes.

For a business deal like this, high ranking policy makers should definitely take diplomatic and other factors into consideration

Chen Shi-Ming President's secretary-general

Traditionally China Airlines has flown mostly aircraft made by US aerospace giant Boeing, whose planes make up almost three quarters of the 54-strong fleet.

Europe's Airbus, which provides the rest of the aircraft, ought to be in the running for China Airlines' new 16-plane, $2bn order.

But Taiwan's government, it seems, is now pressuring China Airlines to go with Boeing to make sure the island's friendly relations with the US are underpinned.

Diplomatic realities

The hints came from the top, in the shape of the office of President Chen Shui-bian.

"For a business deal like this, high ranking policy makers should definitely take diplomatic and other factors into consideration," said Chen Shi-Ming, the president's secretary-general.

"CAL is a company established by government finance," he added, referring to the state's 70% stake in the firm, "and therefore the government can certainly wield its influence."

France had recently shown Taiwan the cold shoulder by refusing President Chen's request for a stopover, he told reporters, while the US continued a staunch ally.

Caught in the middle

Taiwan finds itself in a difficult position.

Officially both itself and its larger neighbour, mainland China, both regard the island as part of China.

The difference is that while Beijing sees Taiwan as a rebel province, Taipei has for 50 years portrayed itself as effectively a government in exile from the Communist hegemony in the People's Republic.

In practice, that means that only a handful of countries recognise Taiwan diplomatically, making US treaties promising defence against any assault from the mainland absolutely vital for the island's security.

And this is far from the first time that national security considerations in Asia have taken centre stage in aviation.

Earlier this year, France's Dassault lost out on a fighter deal with South Korea - again in favour of Boeing - which it insisted was the result of political pressure from the Korean Ministry of Defence.

No pressure

Now, though, the government is trying to step back from Mr Chen's comments.

The Taiwan Commercial Times newspaper has reported European representatives telling the government that favouring the US could lead to trouble with the World Trade Organisation, as well as putting at risk attempts to expand sales to Europe.

And on Thursday the transportation minister insisted that there was no pressure on China Airlines to choose Boeing.

"It has been my long-standing position that I'll respect China Airlines' right to run its own business," Lin Ling-san said, after opposition politicians accused the government of caving in to US demands.

"I believe that China Airlines will make the best decision for the country and for the company."