More than 100 people crowded into the Starr Auditorium at the Kennedy School of Government last night to hear Taiwanese foreign affairs representative Stephen S.F. Chen.

Chen, a delegate from the Taipei Economic and cultural Representative Office in the United States, spoke about Taiwan's economic and democratic success, relations with China and relations with the U.S.

In the speech, which was co-sponsored by the Chinese Students Association, the Taiwanese Cultural Society and the Institute of Politics, Chen celebrated. Taiwan as a model democracy and commended the state's economic development.

"We believe that Taiwan sets a good example for other developing countries that wish to modernize without upsetting their fundamental social structure," Chen said.

Though Taiwan has an independent, democratic government, it remains a territory of the communist Peoples Republic of China. Economic interests are crucial in maintaining their ties. According to Chen, Taiwanese entrepreneurs make up China's second largest source of outside investment.

"The reality of our economic interdependence is indisputable," Chen said.

Chen believes economic collaboration will be crucial in redressing Asian economic woes generally.

"The region's financial recovery requires international cooperation," he said, "regardless of political boundaries."

Such international cooperation should not be limited to just those in Asia, Chen said.

Chen emphasized that commercial links between U.S. and Taiwan are also important. "Forty-five Massachusetts companies [alone] have invested in Taiwan." Chen said.

According to Chen, U.S. commercial ties with Taiwan result in 800,000 new jobs in this country.

"We are grateful to the U.S. for their steadfast support of our democracy, security and freedom," Chen said.

"The result is sure to be beneficial for international peace and democracy."

Despite economic connections between Taiwan andChina, relations are still strained. The Taiwanesegovernment has demanded that China renounce anyfuture use of force. Yet China continues tothreaten military retaliation in the event of aTaiwanese declaration of independence.

"These exchanges alone have not generatedenough mutual understanding," Chen said, "that iswhy dialogue is still so important."

This month official dialogue between China andTaiwan resumed in Shanghai, after having beensuspended in 1995.