LOTTMAN: My first question has to do with people's economic dependence on the exploration and use of space. How do people's well-being and economic livelihoods depend on the use of space today?

YAFEI: Thank you. Well, first of all, outer space is the common property of mankind. We-our reliance on outer space is growing. For instance, the telecommunication, we use satellites a lot. Telecommunication, remote sensing, weather forecasting and meteorology forecasting. And also nowadays, I believe, a lot of scientific experiments are done in outer space. Not to speak of our exploration into the universe. So really, that's an important area of our economic activities. But it belongs to the whole mankind.

LOTTMAN: How do we rely on outer space for our national security-in terms of those types of concerns?

YAFEI: Outer space covers each and every country. It doesn't belong to one particular country. But the capabilities to explore or make use of outer space is different. Remarkably different. Very few countries have space capabilities now. So if armed conflict is introduced in outer space... if outer space is weaponized as some countries are preparing to do, that will endanger or threaten the security of all other countries. And also could possible deprive other countries of the legitimate right for self-defense.

LOTTMAN: How are different nations cooperating in the use of outer space? What are some examples?

YAFEI: Basically, the cooperation in outer space is done in the UN, or in the framework of the United Nations. There is a special committee on outer space in the UN. And there are two subcommittees. One on Science and Technology, the other is on Legal Issues. A lot of the discussions have been done, and I believe some progress has been made, especially in the area of space debris, how to deal with that.

But in another area, that is Conference on Disarmament, as you know, in Geneva, they from 1984 or 1985 to 94, each year, they established a special committee to prevent arms race in outer space. Because of divergence of views, and different interests, there has been no consensus yet.

LOTTMAN: Are all countries in the United Nations involved in the space commission, or is it a certain set of countries? How many participate directly in this diplomatic activity?

YAFEI: It's open. The problem is that I believe not each and every country is participating, because of, first of all, their capability to explore or use outer space. Another thing is whether they are really interested. Some countries are saying, it's a little far away. That it's down the road, not really in their interest to participate. But I believe it is important for all countries to be concerned how Humankind uses space. Outer space especially.

LOTTMAN: The US military often expresses the concern that somehow, some other country is going to use outer space in such a way as to harm the United States. Do you think that concern is justified? Does your government have similar concerns? How can space be used today for one country to threaten another?

YAFEI: The situation, I will be honest with you. The situation is just the opposite. It is a situation in which other countries will feel somewhat threatened by a very ambitious, strategic plan to develop space capability by the United States. Because, as we know, US is one of a very few countries that has, already has, first of all, the most superior, most superiority in conventional weapons. Most lethal nuclear arsenal. And now, it is well embarked on the road to, as we know, as US said, the control of space. The control of space.

There is a plan already out which says in 20 years time, the US is going to have land-based weapons to be used in outer space. And also space-based platforms, weapons, weapons systems, lasers, that will be part of the key, or will be key part of the US strategic forces. With this in mind, other people of course will feel concerned. Will feel concerned. That's why we are appealing to have a stop in deploying, experimenting, and the use of outer space for weapon purposes.

LOTTMAN: What the Space Command or Air Force will say, is our assets in outer space are very important to us, so we want them to be safe. What are some of the ways to do that? To guarantee that important systems and satellites are safe and are not attacked?

YAFEI: Safety is relative. And safety or security can only be achieved by banning the weapons system, not be deploying more weapons, first of all. Secondly, I think we should be actively engaged, US and other countries--China included, of course-we are strongly advocating for, first of all, peaceful use of outer space. No weapons in outer space. No weaponization. No arms race.

And actually we have already raise our ideas at the CD in Geneva. The Conference on Disarmament. Several ideas. One is, we have to strictly abide by the existing multilateral and bilateral agreements concerning outer space, of which there are a few. Like outer space treaty, 1972 ABM treaty between US and Soviet Union, and also 60, I believe 63, 65, partial test ban treaty. Then, we are proposing to negotiate and conclude a new international legal instrument.

LOTTMAN: Please give some more background on that-on the diplomatic efforts for a new treaty against weapons in space, against an arms race in space. Talk about your government's leadership in that effort.

YAFEI: My government is taking the lead in this area. As I said, first of all we are asking a strict observance of the existing treaties, and then we are proposing to negotiate-this will be a very difficult, long process, of course we understand that-but we are proposing to negotiate and conclude a new international legal instrument on subject of outer space. The purpose would be several-fold. One: outer space should be used for peaceful purposes only. Second: no weaponization. Third: no arms race. The articles or provisions as we envision will include a ban on experiment, deploy, or using outer space, of any weapons system. Nuclear weapons, other weapons of mass destruction, weapons systems, lasers, etc. As for military satellites, that's another category. We have to study. We have to set some ground rules on that. But basically we should ban the weapons systems in space. That's very clear.

And also we need to, on the other hand, promote or facilitate the international cooperation on the peaceful use of outer space. And furthermore on the banning part, we need to have efficient monitoring system and verification system, and if there is any dispute, how to resolve the dispute, etc. Well, we are actively pushing for that.

LOTTMAN: We've talked about this a little bit, but military leaders here in the United States talk openly about warfare in outer space. As though this were inevitable. In fact, that's what they say: it's going to happen someday, and we will fight in outer space. What is your opinion about that?

YAFEI: Several points. One: to be honest, if we are asking people, who is capable of launching wars in outer space, people say, only a few countries. Us is number one, probably, in terms of capability. That's why we are saying, China is saying, let's do something now to prevent the weaponization of outer space. That would take the carpet out of the whole thing. Out of the whole thing.

As I said, security is relative. You want to increase your security, which is absolute security, at the expense of other people's security, saying I have to deploy more weapons, in order to protect my own assets. Which, in a way will be very threatening to others, you will cause an arms race. The result will be an arms race. Other people will be forced to be engaged in an arms race. And we well know what the results will be.

LOTTMAN: The following is a different kind of question, but it's something I've been asking people who have been involved in outer space for a long time. Long enough to be philosophical about this. And that is people's view of outer space. When people are stressed, or bad things are happening, often they will look up at the sky, as something to make them feel a little bit better. So what would be the impact of having outer space be just another medium for weapons and warfare. What would be the impact on people, on the way the feel when they think about it?

YAFEI: People will feel nervous. I, for one, when I am looking into the sky, although you couldn't see it, so many military satellites in the sky, you see weapons systems floating in the outer space, you feel insecure. Because they could come on to you any time. There is no boundary, so to speak, that prevents that from attacking you. It's very scary. It's very scary.

And now, only a few countries have that advantage of developing, or experimenting, or placing into space the lethal weapons. That is why China, I believe, is very very active, we are doing the right course, in calling for an international efforts now, right nw, to negotiate a new international legal instrument banning deployment, experiment, and all these things, before it's too late. And as you said, some of your military leaders are already claiming they want to do that. It's not right.

LOTTMAN: Is that something people need to be happy?

YAFEI: I think people will be very happy if they see only clear sky, and only those satellites that are for peaceful purposes.

LOTTMAN: Looking at the United States National Missile Defense system, it seems it would be much easier to use this system as an anti-satellite system than as a defensive, anti-missile system.

YAFEI: First of all, why should we shoot down satellites? If they are for weather forecasting, telecommunications. We all rely on them. There is globalization. The expansion of our integration, of our economy, globalization, we rely more and more on outer space in terms as I mentioned, telecommunications, etc. There is no need to shoot them down. Why should we shoot them down? As for NMD, China has its own views. We believe it's a wrong move, it is going to upset the strategic balance, which provides the underpinning for relative strategic balance for a long, long time. And we do not buy theory that this is against a few possible missiles from so-called rogue states. The argument is very slim, very slim.

LOTTMAN: There's an overall trend, Russia and the United States are actually relying even more on nuclear weapons for our security. Is the same kind of development happening in China?

YAFEI: First of all, our nuclear force is very very small. Very small, compared to other nuclear weapons states. This is purely for self-defense. If you carefully study the history of China's nuclear weapons, we came into the possession in 1960, I believe 1964-the 1960s. The reason we have that is that we were threatened by nuclear weapons from other states. We had to develop a deterrent. But as you will see, we maintained all along a very very minimum, lowest possible minimum deterrent, whether in terms of number, or etc. So our forces are purely for defensive, and to pose no threat, whether it's number or quality, against other countries.

China is the first country, or the only country, which has declared that China will not be the first to use nuclear weapons against any other country, under any circumstances. We are still waiting for answer, because we proposed it to the US, and other nuclear weapons countries, to negotiate and conclude a no-first-use treaty, an international treaty, so that it will reduce the threat, or the risk of nuclear war.

LOTTMAN: In ten years, within the next ten years, do you foresee a reunification of the two Chinas, between China and Taiwan.

YAFEI: First of all, there is no 'two Chinas'. There is only one China. I have to correct you. It is, this is a fact recognized by over 180 countries in the world, by the United Nations, including by the US government too. There is a one-China. Taiwan is part of China. And of course, the Chinese people, the whole Chinese nation, including people in Taiwan, do wish to have, to see their country reunited. Because the separation of Taiwan from the result is a result of the Civil War, and honestly is a result of the direct military intervention in the early 50s, of the United States. So we think, and this is the just course of the Chinese nation. It represents the lofty aspirations of the whole Chinese nation. We want to, of course, go on to see it happen.

LOTTMAN: What will be the political changes in the next ten years in terms of the relationship between Taiwan and the mainland? Will things stay more or less the same?

YAFEI: We are very clear in our position. And that is, we want to have peaceful reunification. We want to have cross-strait dialogue, peaceful reunification. But we also said, very clearly, that Taiwan independence means war. That's the bottom line. We don't want to have any war, but we cannot have Taiwan be permanently separated from China.

LOTTMAN: As you referred to, it is the policy of the United States that there is one China. But in practice, there seems to be some ambivalence about that. How do you view the United States' having this policy, yet having this ambiguous position?

YAFEI: There are three joint communiqués between the governments of the People's Republic of China and the United States. All of these joint communiqués, which are binding on the two countries, there is a recognition on the part of the United States that there is only one China, Taiwan is a part of China. And People's Republic of China represents the whole of China, including Taiwan. And in one joint communiqué, that is a 1982 one, US has undertaken a commitment to reduce arms sales to Taiwan, and eventually find a solution.

I am sorry to say that US government has not abided by that commitment in good faith. Weapons sales to Taiwan has been increasing, both in terms of quality, and quality. For instance, at this years meeting, arms sales meeting between Taiwan and US, it has been decided by the US government to sell to Taiwan a long-range early warning radar system which, according to reports, is part of the US strategic forces, used by US strategic forces. And other lethal missiles, too. Not to mention a few years ago we had this F-16 sale. Large amounts, large quantities of F-16s. This is really, not only a violation of Chinese sovereignty and territorial integrity, but also constitutes a threat to China's security.

LOTTMAN: What is China's top national priority? What is the most important thing in terms of moving into the future?

YAFEI: For China, of course we want, first of all, we want to develop ourselves, into a modern country. China has been suffering from foreign aggression for a long long time, in the past several thousand years. Foreign aggression. China has been a semi-colonial country. So we want to develop ourselves into a modern country. But China wants peace. We have a foreign policy of peace. China will never, no matter how powerful we are later on, or how economically viable we are, we will not constitute any threat to any other country, first of all. Secondly, China wants our own country to be reunited. Hong Kong is back. Macao is back. Taiwan, of course, is part of China. We want to see reunification of whole of China including Taiwan. Thirdly, we want to live peacefully with all other countries in the world. This is very simple.