NMD SYSTEM WOULD UNDERMINE MUTUAL TRUST, CHINA'S DEFENSE MINISTER SAYS BEIJING, MARCH 2, 2001, /RIA-NOVOSTI CORRESPONDENT ALEXANDER ISAYEV/ -- The NMD (National Missile Defense) system, due to be deployed by the United States, would undermine mutual trust between different states, also negatively affecting international peace. This was disclosed here today by PRC (People's Republic of China) Defense Minister Chi Haotian, as he received his Australian counterpart Peter Reith. Should the United States implement its NMD plans, then this would undermine the strategic balance of power; besides, such actions are highly likely to trigger off yet another round of the arms race, Chi Haotian stressed. In his words, China can't approve Washington's plans. Chi Haotian and Peter Reith also discussed various issues as regards expanded contacts between the armed forces of China and Australia, the imparting of a stable and healthy nature to such contacts, as well as the Asia-Pacific situation and the Taiwan issue. According to Chi Haotian, China advocates the peaceful reunification of the PRC and Taiwan on the basis of the "one country -- two systems" principle. At the same time, China is determined to prevent Taiwan's independence and to thwart any separatist insular activity, Chi Haotian added.