DATE=5/29/98 TYPE=CORRESPONDENT REPORT NUMBER=2-232984 TITLE=CHINA / TAIWAN SPYING (L ONLY) BYLINE=ROGER WILKISON DATELINE=BEIJING CONTENT= VOICED AT: INTRO: TAIWAN IS DENYING THAT FOUR TAIWANESE BUSINESSMEN ARRESTED BY CHINESE AUTHORITIES FOR ESPIONAGE ARE LINKED TO TAIPEI'S INTELLIGENCE BUREAU. V-O-A'S ROGER WILKISON REPORTS BEIJING SAYS TAIWANESE INTELLIGENCE SENT THE MEN TO CHINA TO COLLECT POLITICAL, ECONOMIC AND MILITARY INFORMATION. TEXT: CHINESE CENTRAL TELEVISION SHOWED THE FOUR TAIWANESE SITTING GRIMLY AS THEY ANSWERED QUESTIONS FROM PROSECUTORS. IT SAID THE MEN CONFESSED TO BEING INTELLIGENCE AGENTS. THE REPORT SAID THAT THE MAN CONSIDERED THE RINGLEADER -- KOU CHIEN-MING -- WAS ARRESTED IN BEIJING LAST MARCH, BUT IT GAVE NO DETAILS ON WHERE OR WHEN THE OTHER ARRESTS OCCURRED. THE TELEVISION NETWORK SAID THE FOOTAGE OF THE MEN BEING INTERROGATED WAS SHOT LAST MONTH. EARLIER THIS WEEK, TAIWAN ASKED CHINA FOR DETAILS ABOUT SEVERAL TAIWANESE BUSINESSMEN REPORTED TO HAVE BEEN DETAINED ON SUSPICION OF SPYING. BUT CHINESE OFFICIALS DECLINED TO COMMENT ON THE CASE UNTIL THURSDAY, WHEN THE SEMI-OFFICIAL ASSOCIATION FOR RELATIONS ACROSS THE TAIWAN STRAIT INFORMED ITS TAIWANESE COUNTERPART --THE STRAITS EXCHANGE FOUNDATION-- OF THE ARRESTS. THE FOUR ARRESTED BUSINESSMEN ARE MEMBERS OF A PRIVATE ASSOCIATION FOUNDED BY MR. KOU IN 1991, TO CONDUCT CIVIL EXCHANGES BETWEEN TAIWAN AND CHINA. CHINA'S OFFICIAL XINHUA NEWS AGENCY SAYS THE SO-CALLED CHINESE CROSS-STRAITS NON-GOVERNMENTAL EXCHANGE ASSOCIATION HAS BEEN USED AS A COVER TO RECRUIT SPIES AND SEND THEM TO THE MAINLAND. BUT TAIWAN SAYS THERE ARE NO LINKS BETWEEN THE GROUP AND ITS INTELLIGENCE BUREAU. IT SAYS MEMBERS OF THE ASSOCIATION ARE BUSINESSMEN WITH INVESTMENTS IN CHINA. CHINA SAYS MR. KOU AND HIS COHORTS ADMITTED TRAVELING TO THE MAINLAND ON SEVERAL OCCASIONS OVER THE PAST FIVE YEARS TO GATHER INTELLIGENCE. IT SAYS THAT A MANUAL ON INTELLIGENCE-GATHERING WAS FOUND IN MR. KOU'S POSSESSION. TAIWANESE NEWS MEDIA SAY MR. KOU'S ASSOCIATION HAS CLOSE LINKS WITH AN ARM OF THE ISLAND'S RULING NATIONALIST PARTY, THAT IS INVOLVED IN GATHERING INFORMATION ABOUT CHINA. BUT THE TAIWANESE GOVERNMENT SAYS BEIJING ACCUSES TAIPEI OF ESPIONAGE EVERY YEAR, JUST AHEAD OF THE ANNIVERSARY OF THE 1989 MASSACRE OF PRO-DEMOCRACY DEMONSTRATORS AS A WAY OF WARNING CHINESE DISSIDENTS. (SIGNED) NEB/RW/FC/KL 29-May-98 7:13 AM EDT (1113 UTC) NNNN Source: Voice of America .