A brigade of Taiwan's elite marine troops, flanked by howitzers, artillery, rockets and amphibious vehicles, showed how they would retake a hill from communist forces invading the southern Pingtung area, during an exercise codenamed "Lien Yung (United Brave) 97-11."

Other weapons mobilised in the drill included a fleet of four F-16 fighters, four AH-1W Super Cobra attack helicopters, an OH-58D Kiowa Warrior scout helicopter and a Knox-class destroyer.

The exercise comes at a time when the Ma administration has improved ties with Beijing.

But, "although the tensions across the Strait have eased, we must not reduce our efforts in beefing up our combat preparedness," Ma said.

"An arms build-up is aimed at avoiding war, but we have no fear of fighting," Ma told a group of military officers during the first war games he has presided over as president.

"We must not let the enemy ignore our determination to defend ourselves," said Ma, who was elected in March.

Despite Beijing's protests, the Pentagon notified the US Congress in October of 6.5 billion dollars in possible arms sales to Taiwan that would include advanced interceptor missiles, Apache attack helicopters and submarine-launched missiles.

The arms build-up "would enable us not to negotiate (with China) in fear," Ma said.

China and Taiwan have been governed separately since the end of a civil war in 1949, but Beijing views the island as part of its territory awaiting reunification, by force if necessary.

China has repeatedly threatened to invade Taiwan should the island declare formal independence.

However, tensions have eased since the China-friendly Ma was elected president on a platform of boosting the economy and reducing hostilities across the Strait.

In the latest sign of improving ties, two giant pandas, seen as goodwill ambassadors by Beijing, made their eagerly awaited, groundbreaking trip from China to Taiwan Tuesday.

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